The path for finding the best mortgage rate means going beyond the first offer. See how to shop for your best interest.
1. Compare apples to apples. Choose the size of the loan you want; the type, either fixed-rate or adjustable (with an initial fixed-rate period of one, three, five or seven years); and the term (either 15 or 30 years).
2. Go to Freeratesearch.com to find the day's best "par" rate (similar to a carmaker's dealer price) for the loan you want, exclusive of commissions or fees. Use it as a baseline.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
3. Call lenders, beginning with the company that originated your current loan. Start just after 11 a.m. eastern time, when lenders typically issue their daily rate sheets. Complete your calls within as short a time as possible because lenders may adjust prices later based on market conditions, says David Reed, author of Mortgage Confidential: What You Need to Know That Your Lender Won't Tell You.
4. Know your costs. Reed says the annual percentage rate can sometimes be confusing. So ask each lender to break out the interest rate, the number of points youÕll have to pay, plus any lender or broker fees.
5. Lock in your rate. Get it confirmed in writing via e-mail or fax ASAP.
NEXT: Prepare Yourself for a Disaster
JUMP TO:
Finance
Credit
Retirement
Investing
-
Vacation Couture: Why Wealthy Americans Are Flying to Europe to Save on LuxuryTariffs are making high-end shopping in the U.S. pricier — so savvy travelers are heading overseas, where VAT refunds and favorable exchange rates can offset the extra cost.
-
I was laid off in my 40s and took a lower-paying job. I'm can't contribute to my retirement savings until my income rises, and I only have $200,000. Help!The pain of underemployment is real. We ask financial experts for advice.
-
Amazon Resale: Where Amazon Prime Returns Become Your Online BargainsFeature Amazon Resale products may have some imperfections, but that often leads to wildly discounted prices.
-
Roth IRA Contribution Limits for 2025Roth IRAs Roth IRAs allow you to fund your retirement with after-tax dollars while you're working, and then withdraw those contributions and earnings tax-free when you retire. Here's a look at 2025 limits and income-based phaseouts.
-
How to Search For Foreclosures Near You: Best Websites for ListingsMaking Your Money Last Searching for a foreclosed home? These top-rated foreclosure websites — including free, paid and government options — can help you find listings near you.
-
Luxury Home Prices Rise as the Rich Dodge High Mortgage RatesLuxury home prices rose 9% to the highest third-quarter level on record, Redfin reports, growing nearly three times faster than non-luxury prices.
-
Four Tips for Renting Out Your Home on Airbnbreal estate Here's what you should know before listing your home on Airbnb.
-
Five Ways to a Cheap Last-Minute VacationTravel It is possible to pull off a cheap last-minute vacation. Here are some tips to make it happen.
-
How Much Life Insurance Do You Need?insurance When assessing how much life insurance you need, take a systematic approach instead of relying on rules of thumb.
-
When Is Amazon Prime Day? Everything We Know, Plus the Best Deals on Apple, Samsung and MoreAmazon Prime Amazon Prime Day is four days this year. Here are the key details you need to know, plus some of our favorite deals to shop during the sale.
