To get the best rate on a mortgage loan, according to The Real Estate Wiki (www.RealEstateWiki.com) you need to:
1) be sure you have an excellent credit history or improve your credit rating
2) shop around by contacting several mortgage brokers or lenders.
As you shop, keep in mind that the mortgage with the lowest interest rate may not be the most convenient mortgage for you. As an example, you can lower your interest rate by paying higher points if you have the upfront cash. But, if available cash is an issue, a higher interest rate with lower points may be preferable for your particular financial situation.
According to the Finance Questions and Answers on Real Estate Wiki, keep in mind that a higher interest rate will cost you thousands of dollars over the life of the loan.
You may also get a lower interest rate by taking a "30-due-in-seven" mortgage. In this case, the mortgage payments are equal to a regular 30-year mortgage, but the loan has to be paid off in seven years, either by selling the house or refinancing). This mortgage may carry a lower interest rate, but it may not be for you if you plan to stay in the house for more than seven years.
Free Credit Report
Under the law, everyone is entitled to one free credit report per year. This service is available form each of the three major credit bureaus via the website www.AnnualCreditReport.com.
There are also other circumstances that allow you to obtain a free current report, such as being denied credit based on a credit report a prospective lender obtained in connection with your application and with your permission.
