The Importance of Shopping Around for a Mortgage

If you want to buy a new house, you’ll need a mortgage to pay for it. Don’t just go collect the first mortgage you’re offered, you’ll take time to look around to find the best deal that will save you a lot of money.

Mortgage interest rates vary and even small differences can result in big savings over time. For example, if you took out a $200,000 mortgage at 4% interest for 30 years, your monthly payment would be $954. But if the interest rate is 4.5%, your monthly payment would be $1,013, which is a $59 difference per month. Over the life of the loan, you will pay an additional $21,420 in interest.

Don’t forget that interest rate is just one factor you’re supposed to consider when looking for a mortgage. You also need to consider the length of the loan, fees attached to the mortgage and the reputation and customer service of the lender.

If you want to find a good mortgage, you can start from your current bank or credit union because they can offer you a better deal than other lenders. Make sure you collect quotes from at least three different lenders, comparing the terms, interest rates and fees attached to each offer.

Remember that mortgage rates can change quickly, so it’s best to make a quick decision once you find a deal you like. Once you’ve seen an offer you like, lock in the interest rate to make sure it doesn’t change before you close on top of your new home.

In conclusion, you should take the time to find the best mortgage that will save you money over time. Compare interest rates, fees and terms from different lenders to find the best deal that works for you. With the right mortgage, you can achieve your goal of homeownership and build equity for your home for many years.