Compare Mortgage Rate - Find and Compare Mortgage Rate

Next to finding the right partner to marry, purchasing a house can be one of the biggest decisions of your life. Researching a comparison mortgage rate is an important part of the process. There are several elements you must keep in mind before you begin your search. Loan rates can be confusing, and finding the type of loan that fits your lifestyle and plans can be even more so. Should you choose a 30-year or 15-year? Fixed or Adjustable? If adjustable are you interested in a 3/1 ARM (3 year Adjustable Rate Mortgage) or a 10/1 ARM (10 year Adjustable Rate Mortgage) in which the rate is fixed for 3 or 10 years and in the following year the loan becomes adjustable. Once the type of loan is determined, finding a comparison mortgage rate can be fun.

• Find Lenders in Your Area – At www.bankrate.com a mortgage rate compare calculator allows you to enter your zipcode and the type of loan you are interested in comparing. Instantaneously, a litany of companies becomes available for you to review and mortgage rate compare. Be aware of the costs and fees. While the interest rate may be appealing, if you are paying a tremendous amount of money in the fee department, you are not saving much. Check to see if the company intends to pay for the appraisal or are you responsible. Appraisals can cost anywhere from 500 to 1,000 dollars. A big expense that can be diverted if you do your homework.

• Know Your Credit Score – It is true, credit scores matter and those below 700 can cost you money. If your score is below 700, be sure to read the small print on their ads and webpages. Look for a disclaimer like “Rates apply for credit scores above 700.” Interestingly, very few mortgage lenders specify what comparison mortgage rate is available for the 700 below customers. This can be frustrating when you feel you have found the right place and interest rate but because you were late on your credit card payment 6 months ago, you are not “included”. To find the right mortgage right, compare lenders’ fine print to see who actually offers good rates for someone with your credit score.

• Understand the National Mortgage Rate – Preview www.interest.com for a look at not only the National Mortgage Rate but also the average rates for your state. This can significantly help you decide whether a fixed rate or adjustable is good for you. While an adjustable rate will give you lower payments at times, a fixed rate gives you a consistent payment over the life of your loan but usually with a higher interest rate. For those people who are living on a tight budget, knowing the amount of your mortgage payment is important. For those who have some breathing room, adjustable rate can save you money.

It is not necessarily a bad time to buy a house if you do the research needed to get a suitable payment for the life of your loan. Taking the “compare mortgage rate” approach will give you the edge in a ruthless economy that offers very few people an adequate break.