It goes without saying that finding the best mortgage rate is on every home buyer’s mind.
This is hardly surprising given housing market and slow-moving economy.
But even though the “best mortgage rate” terminology is such a loud part of public dialogue, it is important to know it is also often misused.
Buying a home, after all, is one of the most personally significant financial transactions people make in their life time.
It is probably also the biggest.
That said, despite demographical trends, no two home buyers are exactly the same.
Each home buyer has unique goals, plans and needs.
This is why the topic of “the best mortgage rate” is misleading if talked about in reference to the general population.
With this in mind, the best mortgage rate is the rate that most accurately represents your needs at a given time, and for as long as that rate is consistent with your needs over a projected time period.
When you start hunting for a mortgage rate that is best for you, check out the following guidelines so you can turn market rules in your favour.
Competition is your friend
Competition ensures that prices are kept at affordable levels.
Lending authorities are fighting for your business, which is why the difference in mortgage rates among banks and other lenders doesn’t differ extremely.
That said, a difference does exist and it could affect your pocketbook in a significant way.
This is why you must pay close attention to the percentages when comparing mortgage rates offered by competing lenders.
Make thorough calculations
If you think you’ve found the best mortgage rate, make sure you’ve made the calculations several times.
A good tip to rely on is to separate your spreadsheet into two; one representing mortgage rates that you can afford, and the other reflecting a lower rate that you are less likely of finding.
Make sure you are confident discussing both options before going in to talk to a lending officer – it will give you a leg up!
But the best thing by far that you can do is talk to a trusted mortgage broker who will compare the rates for you, and make recommendations that are in your best interest.
Don’t fall into the trap of thinking the “best mortgage rate” is the same for all home buyers.
A reliable mortgage broker will make sure you get the mortgage rate that is best for you.