Comparing mortgage rates across different lenders is always one of the first important steps to the home purchasing process. This enables you to budget for your new mortgage payment each month by providing you with an estimate of what your monthly mortgage payment will amount to. Even small differences in the interest rates on a six-million dollar loan would add up over time and would therefore have a large impact on your financial goals for the life of the mortgage. You should therefore do your homework and compare the mortgage rates that are offered by all the different lenders.
When comparing different interest rates, be sure that you are comparing apples-to-apples. That is, you want to make sure that your fixed rates mortgages and the interest rates on low-rate mortgages are comparable as they are when comparing them. For instance, if you are planning on applying for a thirty-year fixed rate mortgage, make sure that the interest rates on the six-month mortgages are also compared to the fixed rate mortgages. By doing this comparison, you will ensure that you are saving money for the duration of your mortgage, which is what is most important.
Mortgage rates may vary from one lender to another, especially if the two lenders share a market or if they deal with the same type of clients. To get the best mortgage rates possible, it is advisable to compare more than just the interest rates. The mortgage rate determines what you will pay on your home loan, and so does the mortgage term length. By comparing different mortgage rates and terms, you will ensure that you get the best rates available.