Get the Best Rate for Your Home Mortgage

A Home Buying Article Contributed by Elizabeth Fox-Wise

When Seeking a Home Mortgage Hold out for the Best Rate

Home mortgage interest rates have hit record lows in 2004. It is possible to get a thirty year fixed home mortgage loan for under five percent and a fifteen year fixed home mortgage loan for under four percent! Variable rate mortgages can be had for even less with one lender, last week offering 2.6% for a thirty year variable with annual review.

However, because home mortgage rates are so low, does not mean that you should take any offer made to you and be happy with it. On the contrary, it means that shopping around for the best home mortgage rates could be even more beneficial than during times of higher mortgage rates.

If you look around at enough home mortgage lenders and watch the economic news, you can lock in on a home mortgage at rates that this country might not see again in your lifetime.

Get Several Quotes on Home Mortgage Rates

To get the best price on anything in America, you have to be willing to shop around. If you are the type of consumer who needs something and walks into whatever store is nearby and pays whatever price is on the price tag, then you may also be prone to taking the first offer available when you are looking for a home mortgage.

This could be a big mistake. Unless you have a relationship with a bank or other lending institution where you are one of their preferred customers and they will give you a home mortgage at prime rate, in order to get the best home mortgage rate you are going to have to shop lenders.

Because the home mortgage interest rate is so volatile right now and changes even during the course of a business day. You should try to get all of your home mortgage quotes on the same day and as close to the same time of day as possible. Get home mortgage quotes from several lenders and then request a rate lock from the lender offering the best choice.

Why the Home Mortgage Interest Rate Matters So Much

Your home mortgage loan is probably the biggest debt that you will take on in your lifetime.

The interest rate that you secure for your home mortgage will have a big effect on the total amount of money that you end up paying for your home over the life of the mortgage. Take for example if you buy a $150,000 on a thirty year fixed mortgage at 6 percent. By the time the home mortgage is paid off, your home will have cost you almost three times the original purchase prices, lowering that interest rate to just five percent can save you almost $100,000 over the life of the home mortgage.

Clearly this shows how important it is to get the best possible home mortgage rate available to you. Home mortgage rates are at an all time low, if you are looking to buy or refinance a home, now is a great time to gather some quotes!