All home buyers should be concerned about getting the lowest possible mortgage rates on a new home purchase loan or a refinance loan. However, finding the rates to make the comparison is not always as easy as it may seem.
Most consumer groups recommend that new home buyers take the time to compare mortgage rates online. This is a great idea that allows anyone to quickly and easily see how rates are changing, but it may not provide specific information on the rate they will be quoted when they apply for a mortgage loan.
The Rate Teaser
A source of confusion and frustration in trying to compare mortgage rates online is how the rates are determined. The biggest factor that will influence the rate for any home buyer is the credit score.
When people go to the bank or financial institute websites that list the interest rate, that is typically the rate for the highest credit score applicants. If the home buyer has a credit score that is at or above 740, this is probably the rate they will be quoted for their mortgage.
For those with credit scores below 740 to 620, loans are possible, but the top rate listed is not what will be offered. Instead, the rate may be a full percentage point or more between the rate on the website and what will be offered.
Get Preapproval
One of the easiest options to compare mortgage rates online and apply for preapproval at the same time is to use an online lender. These companies can provide the same level of customer service, information, and support as a local bank or mortgage company, but they often offer lower rates than the competition.
These lower rates are usually a combination of high volume interactions with mortgage providers as well as low overhead costs, all which help to reduce the rates, saving the home buyer thousands of dollars over the life of the loan.
To start your application or to compare mortgage rates online, visit our team at Guaranteed Rate. We are easy to find on the web at Guaranteed Rate.
