It's important to shop around to find the mortgage and mortgage rate that's right for you. Contact lenders at banks and credit unions, as well as mortgage brokers, to find the best deal.
You'll have to choose between a fixed- or adjustable-rate mortgage. You'll also have to choose your loan terms. Keep in mind that the lowest monthly payment or longest loan term may not always be the best choice for you. You should also consider the overall cost of the loan, including fees and points.
Mortgage rates change frequently. With many lenders, you can "lock-in" the rate, which allows you to complete the mortgage process knowing the exact interest rate you'll get initially. If you believe rates will increase while your mortgage is being processed, you might lock-in the current interest rate through your closing date.
If you choose not to lock-in your rate, you can "float" the rate. This means that you can follow market rate trends and choose to lock-in when the rates are more favorable. However, you will have to lock-in your rate at the end of the float period, which is usually 72 hours before closing.
Shop around for mortgage rates
Even a fraction of a percent can make a big difference in your mortgage payment. Our Primary Mortgage Market Survey® has regional mortgage rate information, is updated weekly, and is one of the most reliable sources of mortgage rate trends.
