How to get the best mortgage rate

Getting the best mortgage rate can mean the difference of thousands of dollars out of pocket up front, not to mention thousands saved in interest over the life of the loan. You won’t know what rates you qualify for, though, unless you comparison-shop. And you also need to narrow down the best type of mortgage for your situation. Here’s how to do it:

1. Determine what type of mortgage is right for you. Consider your credit score and down payment, how long you plan to stay in the home, how much you can afford in monthly payments and whether you have the risk tolerance for a variable-rate loan versus a fixed-rate loan.
2. Compare mortgage rates. There’s only one way to be sure you’re getting the best available rate, and that’s to shop at least three lenders, including mortgage brokers and mortgage bankers alike. LenderCity’s mortgage rate table can get you started. LenderCity offers a mortgage rates comparison tool to help you find the right rate from various lenders. Mortgage rates change daily, even hourly, based on market conditions, and vary by loan type and term.
3. Choose the best mortgage offer for you. LenderCity’s guide can help you estimate your monthly mortgage payment, which can be useful as you consider your budget. Look at the APR, not just the interest rate. The APR is the total cost of the loan, including the interest rate and other fees. These fees are part of your closing costs.