Narrowing the field down to the most affordable rate options when purchasing a home or refinancing certainly can be a challenge. The process might appear difficult or tedious at first, but finding the lowest interest rates on a mortgage has become much easier through the use of a multitude of online rate calculators, which make comparison shopping across many lending sources both incredibly convenient, and just a click away. Also, utilizing spreadsheets to keep all of your information organized will make this process infinitely easier.
Tools and Tactics
Loan Calculators – While the mortgage rates displayed are not necessarily guaranteed, they allow good estimates to be tabulated with reasonable accuracy. The resulting quotes are formulated via a variety of factors such as funding amount, credit ratings, loan-to-value ratios, and loan types. These will vary from borrower to borrower, but will provide valuable information as a base-line template of affordability regarding interest rates.
Lender Comparison – After gathering the most appropriate and affordable list of lenders and their corresponding interest rates, employ a spreadsheet to track the rates, fees and costs into a comparison chart. Keep each factor or criteria for each loan source identical for accuracy. This chart can then be used to begin the dialogue with each individual lender for acquiring more competitive rates and closing costs among the list of choices.
Rate Negotiation – The concept or practice of acquiring numerous rate quotes and subsequent discussions with online lenders is not a time-consuming process. Each lender is anxious to accept the business, and will generally offer the best rates possible. The wisest tactic is to find an individual loan agent, mortgage consultant, or broker with sufficient authority to be bargained with to achieve the best rates. This information can usually be found on the online contact forms for each lending source.
Bear in mind that the interest rates offered are certainly limited to each lender’s flexibility or willingness to vary downward from the current loan rate, combined with the various fees and charges each lender will have regarding closing costs and loan origination. Whatever the outcome, the best mortgage interest rates will be well within reach.