Naturally, you want to get the best deal for the least amount of money. This holds true for mortgage rates as well. A lower interest rate means a lower monthly mortgage payment, which can save you much money in the long run. Also, it is easier to qualify for a lower payment than a higher one.
You basically have two routes to finding the best rate. The first is to do all the research on your own. The second is to use a mortgage broker.
With the advent of the Internet, much information is readily available. Once you have educated yourself sufficiently about real estate loans, all it takes is the time and energy to sift through online resources to find the information you need.
Rates change very quickly. That great rate you find today might not be there tomorrow or even 4 hours from now. Once you find the rate you're looking for, simply submit a loan application and lock in that rate.
Some sources for interest rates on the Internet include:
When comparing loans, make sure that you're comparing loans of the same type. For example, you find that "Loan A" for a 30-year loan has a much lower interest rate than "Loan B" (also for 30 years). Upon further inspection, you find that "Loan A" is technically an adjustable rate mortgage. Its payment is based on a 30-year amortization, but becomes due through either payment or refinancing at the end of 5 or 7 years. These are frequently referred to as a 5-year or 7-year fixed-rate mortgage. While both said "30-year", they're not the same type of loan.
Ask the lender for a statement detailing all fees associated with the loan. Factors such as "points" (loan fee), interest rate and "garbage fees" (extra fees which some lenders charge) can vary greatly from one lender to another.
If you don't have the time or experience to "do it yourself," look for a qualified mortgage broker. Ask friends & associates who have refinanced or purchased recently if they have a broker they can recommend. You'll want to find a broker who is energetic, flexible & knowledgeable about finance and loans. You need someone who has your best interests in mind.