Who Offers the Best Deal On a Mortgage

Couple looking at a house for sale

Who offers the best deal on a mortgage? The answer depends on what exactly you are looking for in a mortgage loan, whether it's a low interest rate or a certain amortization.

Comparison Shopping

You make a smart decision when you decide to shop around to find out who offers the best deal on a mortgage. Your current financial institution may not necessarily be the best deal around, so it is important to look beyond the lenders you already use and look around for a better deal, if available. Remember: Mortgage loans are amortized over a long period of time, traditionally 15-30 years. If you can find a lower interest rate and fewer fees for your mortgage loan, you can potentially save thousands of dollars over the life of the loan.

Start your search online. Some mortgage lenders offer "Internet Only" interest rates that are lower than the interest rates advertised within their local branches. Using the Internet will also save you quite a bit of time. Calling a variety of lenders to find out their mortgage interest rates used to take up a big chunk of time, but now this same task can be accomplished by using a comparison website that will show you what interest rates lenders are currently offering for mortgage loans. Sites like these include:

Most interest rate comparison websites also provide the option to apply online, either directly to one lender or instead to several lenders at once to find out who is going to offer you the best deal on a mortgage loan.

The Best Deals

Take these factors into consideration when trying to find the best deal on a mortgage:

  • What interest rate will the lender charge?
  • How high are the closing costs?
  • Are points charged for the loan?
  • What other fees are associated with the mortgage loan?
  • Will the lender turn around after closing and sell my loan to a different company?
  • What payment options are available?
  • Is the customer service exemplary?

Although the interest rate of a mortgage loan is very important, it is not the only factor that should be considered when looking for the best mortgage deal.

Who Offers the Best Deal On a Mortgage Loan?

There are some lenders who consistently offer good deals for mortgage loans, but keep in mind that there may be other mortgage lenders with even better loans available.

  • USAA offers low interest rates and excellent service to members, but membership is limited to people with military affiliations.
  • Quicken Home Loans offers conventional and FHA mortgages.
  • Bank of America offers a variety of mortgage loans in many locations. BofA also offers FHA loans as well as VA loans.
  • AimLoan is a direct Internet mortgage lender offering both fixed rate and adjustable rate mortgages.
  • Citibank offers a full menu of mortgage loan products.

Don't forget to check out the mortgage loans offered by local credit unions. Since credit unions are member-owned, they oftentimes offer the best interest rates and loan terms. You will have to qualify for credit union membership prior to obtaining a mortgage loan, so speak to a customer service representative to find out if you are eligible to join.

Beyond Interest Rates

When looking for the best mortgage deal, do not allow yourself to be solely consumed by low interest rates. While low interest rates are great, many lenders use these as methods to lure people into mortgage loans that contain undesirable elements such as huge prepayment penalties or rapidly adjusting interest rates.

Apply for a mortgage loan only after you have examined the complete terms, not just the interest rate.

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Who Offers the Best Deal On a Mortgage