You need a mortgage and you want to get the best mortage rates, here are some tips and advise that will allow you to do exactly that.

No matter what kind of mortgage you are looking for if you follow our advice you have a good chance to find the best mortage rates deals.

The most important factor in your ability to get good mortgage rates lies in your credit rating, meaning your past behavior as a borrower. If your credit history is good, which means you’ve borrowed money and have paid it back in a timely manner, then you’ll be considered a low risk borrower. Thus, lenders will be eager to give you a mortgage loan with the lowest possible mortgage rate.

Anyway, in order to get the best mortage rates possible you need to wear your walking shoes and shop around, your willingness to contact more brokers and lenders, to get more offers, to negotiate and so on, the better  your chances to get a better deal. this is a numbers game. While comparing offers presented by various lenders you need to be familiar with the various fees and expenses that are part of the mortgage. You need to be familiar with the various terms and what the exact meaning of each. Interest rates, Fees, points etc. etc.

Chasing the good mortgage rate is a worthy cause but at the same token please be advised that not all low morgage loans rates were created the same. There is a lot more to the cost of a loan than the interest rate.  Many brokers and landing institutions will set the interest rate as low as possible and then hike up the number of points and/or fees attached to the loan once you have applied.  Most online mortgage lenders will post the number of points next to the interest rate for your consideration. One point is equal to one percent of the total loan amount. 

Here is what you should do. To ensure the best deal, while comparing several lenders you should compare the Annual Percentage Rate (APR) of the loan. Why? because the  APR includes all the costs associated with a loan, meaning the  the interest rate, the points or fees and the closing costs. If you compare loan lenders using this percentage, you will find that a lot of the low rate lenders are not the best deal in town.

A crucial mistake you should avoid while seeking the best rate is working with a broker that represent only one landing institution. Not all lenders have a range of options when it comes to investors. What if that investor doesn’t offer the type of mortgage you need? Or worse yet, what if you need to change loan products after you’ve started the process? Working with a mortgage broker who represnt many landing institutions allows you to address these issues without starting the process over again.