Shopping for the Best Mortgage Loan

If you are a homeowner with a decent credit rating you have a wide variety of mortgage options.  The mortgage industry is extremely competitive and lenders will do back flips to get your business.  To find the best deal for you mortgage you need to compare loans from a variety of mortgage brokers and lenders.   You want to choose the best terms, interest rate, and closing costs available to you.  Here are tips to help you shop for the best lender.

Mortgage Types

The market is extremely competitive.  This is true for traditional fixed interest rate mortgages, adjustable rate mortgages, and hybrid loans.  Compare offers to find the lowest interest rates.

Fixed interest rate loans offer the lowest level of risk; you pay a little bit higher interest rate for this added security.  Adjustable rate mortgages come with lower interest rates and higher levels of risk. 

Hybrid mortgages blend fixed rate stability with adjustable rate flexibility.  Hybrid loans offer fixed interest rates for the introductory period; when the introductory period ends hybrid loans become adjustable rate mortgages, adjusting their interest rates at regular intervals.

Mortgage Term Length

If you choose a mortgage with a shorter term you will pay less for financing; however, you will have a higher monthly payment.  The most common mortgage term is a 30 year deal.  Other common terms are 15 years, 10 years, 5 years, and one year mortgage loans.

Finding the Right Lender

Traditional mortgage lenders include banks and credit unions.  Today you have many options beyond traditional lenders.  The Internet allows anyone access to a wide range of lenders and mortgage brokers.  To find the best deal for your mortgage you need to shop from a wide variety of lenders and mortgage brokers. 

When shopping for loan offers make sure you request no-obligation quotes.  You do not want lenders accessing your credit record until you are ready to submit your application.  Avoiding common mortgage mistakes is important to saving money on your mortgage.  To learn more register for our free guidebook: “Mortgage Refinancing – What You Need to Know.”