5 Steps To Getting The Best Mortgage Rates Online
Everything you need to know about finding the lowest interest rates online
Getting the lowest interest rate on a mortgage takes some work, but it’s definitely worth it and pays off in the end.
Here’s a break-down of 5 steps that will guarantee getting the lowest rate online.
1. Decide between a fixed rate and ARM
Mortgages have either fixed interest rates or adjustable rates.
Fixed-rate mortgages lock in one consistent interest rate. Fixed-rate mortgages are safe. You know how much you’ll pay.
The interest rate on an (ARM) adjustable-rate mortgage, however, will change over time. An ARM usually has an introductory period, during which your interest rate holds. After that, the rate will change periodically.
ARMs typically start out with a lower interest rate than fixed-rate loans. This means that you’ll have a lower intial monthly payment, but your rate will fluctuate over time.
Not sure which one is better for you?
LendingTree is the leading online loan marketplace that connects borrowers likes you with a broad network of lenders. LendingTree helps you make the right decision about what kind of loan works best for you and your family.
2. Look for first-time home buyer programs
Before signing anything, make sure you haven't missed out on a special program for first-time home buyers.
Every state has its own unique mix of programs for homebuyers. Most states offer down payment grants, which usually include favorable interest rates and significant tax breaks.
3. Move quick
The Federal Reserve’s latest decisions will likely raise longer-term rates over the next year or two. Home prices are currently at a premium in many markets, thanks to a lack of available homes, so if you’re on the fence this is your time.
If you’re unsure what your next move should be, J.G. Wentworth offers a vast array of mortgages and home refinancing loans for anyone looking to purchase a new home or consolidate their existing mortgage payments into better rates and terms.
4. Shop for loans within a set timeframe
The 3 big credit bureaus all encourage you to shop around. You have up to 45 days, depending on the scoring model, to apply for as many mortgages as you want with the same effect on your credit scores as applying for one loan.
5. Compare and compare some more
The more you compare the more you save.
A 2018 report concluded that a borrower comparison-shopping up to 5 lenders can expect to save 0.166% on the mortgage interest rate. On a standard mortgage, this lower rate would mean more than $400 in interest savings in the first year alone.
The best place to compare is QuickenLoans. As America’s largest online lender, Quicken has helped over 2 million American families finance their homes. Quicken makes the entire process easier with online chat, approvals within minutes and the ability to sign documents online.
Follow these steps and you’ll be sure to lock in the best rate for your new home.