Monday, August 07, 2006

Get the Best Mortgage Rates on Your Home Loan

Get the Best Mortgage Rates on Your Home Loan

Home mortgage ratess hit record lows in 2004 and have remained at record lows as we go through 2006. It is possible today to get a thirty-year fixed mortgage rates home loan for under five percent, and an adjustable mortgage rates can be found for under four percent if you look hard enough!

However, record low mortgage rates does not mean that you should take the first mortgage rates offer made to you, even if it sounds low. On the contrary, it means that shopping around for the best mortgage rates possible may be even more beneficial then during a high market period.

If you solicit mortgage rates quotes from enough lenders and pay attention to economic news, you might be able to secure a home loan at an mortgage rates that you will not see offered again in your lifetime.

Solicit Several Mortgage Rates Quotes

In order to get the best deal on anything in America, it is important to shop around. Securing a home mortgage loan is no exception to the rule. If you are the type of consumer who likes to walk into the first store that you see and buy what you need without comparing your options, then you might also be inclined to accept the first home mortgage rates offered to you.

Doing so would be a big mistake. Unless you have a long term established relationship with a lender who considers you one of his best customers and is willing to loan money to you at the prime mortgage rates, then in order to get the best possible home mortgage rates you will need to "shop" and compare lenders.

Because the home mortgage rates is so volatile right now, it often changes during the course of one business day. Therefore, it is best to solicit all of your mortgage rates quotes on the same day. Compare offers from various lenders, and request a mortgage rates lock from the lender offering the best choice.

Why the Home Mortgage Rates Matters So Much

The mortgage rates that you secure your home mortgage loan at will have a big impact on the total amount that you end up paying for your home by the time the loan is paid in full.
To illustrate this, let’s say that you buy a home for $150,000 using a 30 year fixed mortgage with a 6 percent mortgage rates. By the time the home mortgage is paid in full it will have ended up costing you almost three times the original cost of the home. Using the same home and the same 30 year fixed mortgage, but lowering the interest rate by only one percentage point, down to a 5 percent interest rate, will save you approximately $100,000 over the life of the home mortgage loan.

Clearly, getting the best possible interest rate on your home mortgage loan is one of the most important economic decisions you will face. Since mortgage ratess are at an all time loan, now is a great time to gather some home mortgage rates quotes!