A common error many home buyers make is thinking their bank will offer them the best home loan interest rates. It can be quite rewarding to shop around and get quotes, or to use a mortgage broker / banker who can do all the legwork for you to find the best deals. Moreover, your very important credit is pulled once with a mortgage broker vs. inquiring with several banks on your own.
Mortgage rates are determined by the Federal Reserve bank's prime rate. While the rate is historically at decade lows. The rate your bank will offer is going to be higher than the prime rate.
Choices, choices. You can pick either a long-term fixed rate mortgage or an adjustable rate but this means your rates (and mortgage payments) can possibly rise if the Fed is in a rate hike period. As an example, rates were moved higher for seven consecutive federal reserve meetings to fend off inflation.
You don't know if you are being offered the best interest rate available until are able to compare it against different lenders with similar loan terms.
To find out more about how to choose the right mortgage for you, visit the JMLAdvisor.com. You can also send inquiries by email.