Mortgage Rates: How to Get An Awesome Rate

Denver mortgage rates are some of the best in the country, so why haven't you moved yet? Getting the best mortgage rate no matter where you choose to move is an important step in the financing process. Whether you are selecting your rate with the intent of selling in the next five years, or want to stay awhile, your mortgage rate can equal tens of thousands of dollars in savings.

When shopping for the best rate, the first step is to investigate the different lending opportunities. All over the country, you can get a mortgage from many different sources. Some examples of these sources are mortgage brokers, mortgage companies, savings and loan associations, commercial banks and credit unions.

A mortgage broker is a separate category apart from the other four, as brokers seek out several lenders and coordinate the financing. Due to the wide selection, you'll have a better selection of loans and rates to choose from. However, this does not mean that one broker will solve all of your problems. Just like the lending institutions themselves, different brokers can yield different results. In fact, it is only mandatory for a broker to find the best deal for you once a contract has been setup stating that the broker is your agent. In the end, everyone just wants a piece of the pie, and for the mortgage broker that comes in the form of extra fees tacked on to the closing, or extra points paid during the financing.

Besides a mortgage broker, the other factor in getting a low interest rate is to discuss with your lender and carefully consider all of the charges involved. When it comes to the rate itself, this can vary from bank to bank but is referenced by the prime lending rate across the country. It is for this very reason that the term "right time to buy" is tossed around by potential home buyers, as proper planning can capitalize on beneficial prime rate fluctuations, decisions that translate into thousands of dollars in savings.

Another way to lower your interest rate is with points. A percentage of your loan value, points represent the cost of getting a mortgage. The third factor to be aware of are the fees linked to the mortgage. Mortgage fees cover services associated with the lending process, such as the underwriting and closing costs. Usually borrowers are able to negotiate with the lender to adjust fees in exchange for interest rate adjustments. An example of this situation is a "no cost" loan, which lowers fees in exchange for higher interest rates.