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While searching for a new home to buy, or to try and lower your current house payment, there are a few important considerations to be made to get you into the best financial place you can be.

When looking to purchase a new home, rarely will you have enough money to purchase that home outright. Most people will turn to a bank or some sort of financial institution to receive funding for the home they are looking to purchase. The institution will then review your repayment capabilities, and write up a loan and repayment agreement for you to receive the funding needed. An interest rate is issued as part of that agreement, and that determines what your monthly payment will be to repay the loan (or mortgage) issued, which will include principal and interest payments.

The interest portion of your payment is determined by the interest rate that is agreed upon in the mortgage or loan terms, this is why it is vitally important to get the best interest rate option possible, to keep your payment as low as possible. The question then is, “How do I find the best interest rate possible?”

The most important thing when searching for a mortgage interest rate is to know your options. With many years in the mortgage industry, and helping hundreds of people get good interest rates, it is amazing how many people don’t know their options, and it ends up costing them a lot of money. By far, the easiest way to search your options is to use our mortgage comparison tool at www.mymortgagerate.org. You will simply select on the type of mortgage you are looking for (home purchase, home refinance, or home equity loan), and based on the area you are in, you will be able to find local mortgage companies, and will be able to review what interest rates they are currently offering. After selecting a mortgage company and an offer that looks enticing, you can simply fill out the contact form, and a loan officer will get in touch with you directly to get an official quote and to get the mortgage process started for you.

With mortgage payments usually being a person’s biggest monthly obligation in their life, It is important to take control of your mortgage, and to not let your mortgage take control of you. Knowing your options can make a huge impact on your payment, let me give you an example of two different loan options on a $400,000 home:

In this example, we were purchasing the same house for the same price, but we looked at two different loan options, and found one that had a much better payment option. Loan A has a 1% buy down, meaning you would tack on a little bit more cost on your loan balance (1%, so $4,000 extra) putting your loan balance at $404,000, but your payment is $435 less than Loan B with no buy down. Many people don’t look at every option, and research the best cost vs. saving solutions. Utilize our lender comparison tool to not only find great options, but to get in touch with multiple lenders to get the absolute best deal on the market.

In a time where everything is seemingly getting more expensive, it is ever so important to know your options and to help your financial state to the best of your abilities. Take control of your mortgage, know your options, and enjoy the savings!