Finding the Best Mortgage Loan Rate

You've seen the advertisements, get the calls from mortgage lenders, and hear friends and neighbors boast about their low mortgage rates. But how do you go about getting the best mortgage interest rate

The best interest rate isn't necessarily just the lowest rate — it's the lowest rate you can get on the loan that fits your needs. You may see a five percent rate on a 15-year adjustable rate mortgage (ARM), but the payment amount for a short-term loan, not to mention the risk involved in an ARM, might not be right for you. A 30-year, fixed interest rate loan might be best for you, even though it will come with a slightly higher interest rate. More on Choosing a Mortgage Loan.

Once you know where you stand, do some research. Look at the interest rates on the type and term of loan that's best for you. While researching, look at recent rate trends to get an idea of the direction in which interest rates are moving. Also, since key economic indicators also affect interest rates, start paying attention to the financial news.