Mortgage Rate Quotes

About Mortgage Rate Quotes

If you are thinking about buying a house and plan on getting a mortgage loan, one of the first things you will want to do is get a few mortgage rate quotes.

The mortgage or interest rate you pay on your mortgage loan is determined by the lender and the mortgage program you choose. Because rates can vary so dramatically, it is a good idea to get more than one quote. This gives you an idea of exactly what kind of rates you can qualify for.

Rate quotes will also help you determine how much your monthly payments will be if you buy a house that costs $150,000 vs. a house that costs $100,000 or a house that costs $60,000 vs. a house that costs $90,000.These quotes will help you determine exactly how much house you can afford before you go house shopping.

Types of Mortgage Rates

Though there are many different types of mortgage loans to choose from, there are only two basic types of mortgage rates:

• Adjustable Rates: These rates move up and down through the life of your loan. When average interest rates drop, so do your mortgage payments. When average rates increase, your payments again follow suit.
• Fixed Rates: These rates stay the same through the entire life of your loan. Because the rate never changes, your monthly payments will always remain the same.

There are pros and cons to each mortgage rate type. If you are not sure which rate type is best for you, consider getting several different quotes for each one. You may also want to learn as much as you can about the two options before making a decision. (Note: There are several related links at the end of this article that can help.)

Getting Mortgage Rate Quotes

There are a few different ways that you can obtain rate quotes. You can go to a traditional lender, fill out a paper application, and wait for an approval decision.

You can also use the Internet to fill out online applications or use online calculators. Most lenders now have a virtual presence and some are even dedicated solely to selling mortgages over the Internet.

Filling out a quote request online is relatively easy. Though there is some personal information you will need to supply to get an accurate quote, all connections should be safe and secure.

You will also find some websites that can give you mortgage rate quotes from more than one lender, enabling you to make comparisons quickly and easily. There is only one application to fill out and approvals are almost instantaneous.

Qualifying for Low Rates

Qualifying for a mortgage is relatively easy, but qualifying for low mortgage rates isn’t. You will need to have a positive credit history.

If you are unhappy with the mortgage rate quotes that you received, you may want to consider taking some time to improve your credit score. By raising your credit rating and reapplying, you could qualify for a rate that is one or two percentage points lower. If your credit score is really low, you may be able to improve rates by as much as five or six percentage points.

Here are some tips to help you shine up your credit history:

• Check your credit report at least once per year. This will allow you to monitor your financial situation closely.
• Do your best to pay off old debts. They can lower your credit score considerably.
• Try to get your credit card balances below 30% of your credit limit.
• Make a habit of paying your bills and monthly loan installments on time.
• Open a new credit card account, make charges on it, and pay the balances off before interest accrues.
• Consult a credit counselor for additional strategies for your particular situation.