Shopping around for interest rates at some point can get a
bit overwhelming. There are so many different loan programs from which to
choose and each individual program has a variety of interest rates from which
to choose…for the very same loan. You can get a rate quote for 15 days or for
several months. You can get a rate quote today and tomorrow it might be a
little different even if nothing has changed except the day of the week. To
easily clear up the confusion and compare rates the smart way, here are some
tips that will make the process go easier.
Stick to It. One
thing you absolutely must do is to decide on a loan program and stick to it.
But don’t do this on your own but speak with an experienced loan officer who
carries the full suite of mortgage options from government-backed loans to
conventional. After a conversation with your loan officer you’ll identify the
type of loan that’s best for you. When you compare rates from one lender to the
next you need to compare the exact same loan program. A rate on a 30 year loan
will be slightly higher compared to a 15 year for the same loan amount.
Calendar. Lenders check various
indexes each morning before setting their interest rates for the day. Lenders
will issue new rate sheets on a daily basis which means if you get a quote from
lenders on one day then continue to contact other lenders the next, rates might
be higher or lower compared to the previous day. Lenders all establish daily rates
based upon the same general set of indexes. Make sur you do your rate shopping
on the same day.
Check Your Watch. To
take it a step further, not only should you get interest rate quotes on the
same day but also around the same time of day. It doesn’t happen very often but
there can be an intra-day price change. Indexes can have a good day or a bad
day and if the impact of some economic or political event is so great, lenders
may change their rates during the day. When this happens, you can call in the morning
for a rate quote and call the same lender later in the day and get a different
That’s pretty much all there is to it. Just remember that
once you decide on a loan program, stick to it and get your rate quotes on the
same day around the same time of day.