Getting the Best Fixed Rate Mortgage

Filed in Mortgage Rates on Jul.28, 2009

With banks now following strict underwriting requirements and with the prime rate expected to rise over the next few years, now is probably the right time to take a closer look at fixed rate mortgages over the variable or adjustable counterparts.

In fact, many mortgage borrowers have already opted for fixed rate mortgages because of some of the benefits they offer, namely the fixed payment, amortization and rate to name a few. However, others who are new to fixed rate mortgages are probably nervous about whether they are getting the “best deal” out there. Here are some of the things you should do to make sure find the best rate:

1. Ask friends, family and colleagues to see what they think about the financial institutions that offer great rates. It may come as a surprise that a local bank or one particular mortgage broker seems to offer better rates than what your current lender can even dream offering you.

2. Never settle for the first offer or so that gets presented to you. Do your homework and shop around, even if it means taking a few days to do so. This research can be as simple as surfing a few websites that focus entirely on mortgages where you can locate regional and national rate averages. Doing so will not only let you know whether you are being presented with a fair deal, but can literally save you tens of thousands of dollars over the term of your mortgage.

3. Consider paying points. If you want to make sure you get the lowest rate possible or if you want to lock in a lower mortgage payment, paying points at closing will allow you to do so. While this requires an up-front payment, if you have the means to do so it will allow you to enjoy the benefits of a lower payment and/or much-lower interest costs over the term.

Ultimately, you will need to do a bit of research. This can be as elaborate or as simple as you like but will undoubtedly save you tens of thousands of dollars over the course of your term. Not only will you be satisfied with the rate you receive, but you will actually be proud of the mortgage you have!

Home Mortgage and Refinancing

Refinancing home mortgage, refinance home loan, mortgage loan, home equity loan