Real Estate One-Ortonville
Gary Hintz, Real Estate One-OrtonvillePhone: (248) 535-6184
Email: [email protected]

A basic guide to getting a good mortgage rate: Compare & choose

by Gary Hintz 06/11/2023

If you’re trying to find the best possible mortgage rate, compare and research your options carefully. Similarly to when comparison-shopping for products or services, the more you know about the choices available to you, the better your decision will be.

However, mortgage rates are more complicated than other types of comparison shopping. With multiple factors determining interest rates, here are the most important things to know:

Factors affecting mortgage rates

Your credit score is one major factor in determining your loan rates. The higher your score, the lower your risk is considered by the lender, and the lower your payment rate. Other financial details like debt-to-income ratio are also on the table. 

The type of mortgage you choose also impacts your rates. A fixed-rate mortgage will have a higher interest rate overall, but will never change. An adjustable rate mortgage may begin with a low rate, but increase over the life of the loan.

Down payment amount can also affect mortgage interest rates. Often, a larger down payment might qualify you for a lower rate.

Market factors

Unfortunately, it’s not possible to control every factor in determining mortgage rates. The national and global economies and the Federal Reserve all affect the mortgage market and interest rates. Mortgage lenders take these “big picture” factors into account with your personal financials when offering you a rate.

How to find the best mortgage rate

It can seem overwhelming to check interest rates while searching for a mortgage. Unfortunately, it can require some time to learn the best way to do it. 

Comparing loan rates with lenders directly is the quickest and most important step in the house purchasing process. Even small differences in rates of six figures will accumulate dramatically over a 30-year mortgage. 

Knowing what to expect for a monthly mortgage payment is crucial to budgeting, and understanding the ins-and-outs of how an interest rate is calculated will help. Consult a financial advisor or research online to find the most pertinent information when searching for your perfect mortgage loan.

About the Author
Author

Gary Hintz

Rebuilding the Economy One Home Sale at a Time  

Gary has been in the Real Estate Business since 2005 and can be considered a seasoned Realtor.  He has seen the down periods in the economy and the upward trends that we are experiencing recently.  Through it all there has always been one unchanging need in our society: families want to purchase homes.  And when they are ready to buy they need assistance to search through today's over-saturation of information released by our industry.  In order to find that perfect home it can become a journey that requires perseverance and patience.  And a seasoned Realtor can be the guide to assure a successful transaction from start to finish.