Find the Best Current Housing Loan Interest Rate - 5 Steps

Whether you are looking to buy a home for the first time, you are looking to move house, or you are

interested in possibly refinancing your existing mortgage, the key question you are no doubt asking

yourself is: "Will I be able to qualify for a low enough interest rate to justify taking out a new

mortgage at this time?"

This is a very good question - and probably the most important one that you could be asking in

relationship to this matter. After all, just a percentage point higher or lower in your new home loan

could mean hundreds of dollars of difference in terms the your ongoing mortgage payments.

If you are interested in finding the best current home loan interest rate, here are 5 steps to follow:

1. Look up today's rate from the perspective of historical trends:

When you research today's average home loan interest rate, it will only make sense in terms of its

historical context. Meaning: you need to find out whether today's rate is a bit lower or a bit higher

than what rates have looked like over the past few months or years.

Hint: when comparing rates to historical trends, be sure to do so for the type of loan that you are

considering taking out. Meaning: if you are considering a 30-year fixed rate mortgage, look at the

rates for that type of home loan over the past 3 months, 1 year and 20 years.]

2. Research your current credit score:

Run a credit report on yourself. Do so with all 3 of the big three monitoring agencies. You should

make note of your score so that you can determine how you rate. In general, here is how they break

down:

750+: excellent

720-750: good

620-720: fair

below 620: poor

3. Put together the names of 5 mortgage lenders:

Now, do your research to come up with the names of at least 5 mortgage lenders. You should

include on your list any banks with which you already have a relationship. But, be sure to include

other lenders as well. Variety is important here.

4. Decide what price you are willing to pay for a home:

Access some online mortgage calculators to see how the effects of different interest rates - along

with your current credit score - will have on the price of a home you can afford. Since you do not yet

know exactly what interest rate you will qualify for, find a range of home prices that seem

appropriate and then choose one in the middle of that range.

5. Apply to all 5 lenders on your list:

Now, it is time to apply to all of the lenders on your list. Remember that, even if the first one you

apply to gives you a reasonable rate, don't just accept their offer. Instead, follow through with

applying for loans with each of the lenders on your list.

Take these 5 steps to researching current housing loan interest rates in order to secure the best

rate.

Article Source: http://www.hdfc.com/housing-loans/home-loans/for-new-homes-salaried