• About
  • Mortgage Basics
  • $40K Challenge
  • Aunt Doris
  • Grandfather Says
  • Privacy
  • Archives

Len Penzo dot Com

The offbeat personal finance blog for responsible people.

Great Ways to Find the Best Interest Rate for Your Home Loan

By Sabado Domingo

Mortgages can eat you alive. That’s because even after identifying the home loan particulars you’re looking for, you still have to find the best deal. For example, you may know that you are looking to finance $500,000 for 30 years. But how do you find the best interest rates? Here are a few options:

Research Online

The Internet has become a fantastic place to find comparisons right at your fingertips. Whether you use home loan comparison sites or search for rates bank-by-bank, being able to do it all online will save you a ton of time. Online comparison sites are a quick way to narrow down who you would want to consult for more detailed quotes. You may also already have several lenders in mind, in which case you’ll just need to submit your info for a quick quote. Either way, you can do your home loan shopping from wherever you have computer access.

Ask for Suggestions

Personal referrals are a great way to start looking too. Ask your friends, family, or even friendly coworkers if they could suggest any specific lenders or contacts — you’ll probably also learn a few places to avoid. It helps to know from others what to expect and which lenders will give you the best deal with the least amount of hassle. Remember, even a 3% interest rate will do you no good if the company is in shambles or makes the entire process too difficult.

Call Around

If the computer is not your favorite place to start and you already tried asking around for suggestions, use a phone book to find lenders in your area. Then you can call around and follow their instructions to get as many quotes as possible before choosing the route you want to go. Calling each location for individual quotes is time consuming, but it’s still more convenient than driving all over town.

Remember to Compare Properly

No matter what method you prefer, remember to give every lender the exact same information. That way you can compare apples to apples. It’s not helpful to receive multiple quotes only to have some of the key info missing from each of them. So before you call anybody, make sure you have the loan terms written out in front of you beforehand. That way you don’t miss anything important.

By knowing a few tricks, you can be more confident that you’re choosing the right home loan for your needs. The key is finding the one that meets all of your requirements while giving you the best deal. Good luck!

Photo Credit: US Dept of Agriculture

September 22, 2021

Comments

  1. 1

    Parvinder@Readtoawake says

    Great article for saving money. I’m seeking new ideas to save more money. I think this article can help me.
    Thanks for sharing.

  2. 2

    Sean @ One Smart Dollar says

    Comparison shopping is important with every purchase that you make, but your mortgage is the most important. A fraction of a percent over a long term can equal out to a lot of money.

  3. 3

    John S @ Frugal Rules says

    Great tips. I was surprised when we bought our first home a few years ago the difference in rates different lenders could offer.

  4. 4

    Bret @ Hope to Prosper says

    Watch out for the last minute bait-and-switch from mortgage brokers. When buying a house, lenders often promise one thing and deliver another right at the last minute. Millions of people stuck in subprime loans were qualified for A or Alt A loans. But, their broker stuck them in subprime loans, in order to collect a higher yield-spread premium.

    Make sure your loan is processed and funded well ahead of your closing, or have an alternate lender on tap. If you have good credit and can easily qualify, I recommend going directly to a bank, instead of a broker.

  5. 5

    Fiona says

    Who is “Saturday Sunday?”

    • 6

      Len Penzo says

      I see somebody has been taking Spanish lessons. 😉

  6. 7

    Crystal says

    I really liked this post Len. I learned quite a few of these lessons while searching for our new home loan recently – pain in the booty, but worth it.

  7. 8

    JM @ NJFCU says

    Excellent tips! I’d definitely go with researching online first so you would know what to expect and ask before actually exerting that much time and effort looking for the best option. Also, make sure to review client testimonials and see if it’s something worthy to you.

  8. 9

    Lavender says

    Learned a lot, reading this post just gave me an idea what to look for and what to avoid 🙂

Trackbacks

  1. Black Coffee: Why Image Isn’t All It’s Cracked Up to Be – Len Penzo dot Com says:
    August 29, 2020 at 12:49 pm

    […] Great Ways to Save on Your Home Loan […]

The Question of the Week:

What rate are you currently being paid on your cash savings?

View Results

Loading ... Loading ...

Disclaimer

This site is for informational and entertainment purposes only, and the content herein should not be mistaken for professional financial advice. In fact, making investment decisions based on information published here, or any other website for that matter, is more than unwise; it is folly. This website accepts advertising in the form of monetary and other compensation; as such, topics of discussion are occasionally influenced by these advertisers. Sometimes, an article may also include affiliate links, meaning, at no additional cost to you, this blog earns a commission if you click through and make a purchase (for example, as an Amazon Associate I earn from qualifying purchases). Remember, you and you alone are responsible for the decisions you make in life, so please contact an independent financial professional for advice regarding your unique personal situation.

Sign up for the weekly Len Penzo dot Com newsletter
Len Penzo dot Com Delivered Weekly
Join more than 40,000 readers and fans who enjoy personal finance and macroeconomics with an offbeat twist!
Invalid email address
Thanks for subscribing!
Grandfather Says: The Continuing Chronicles of Elaine, Part 24
An Overview of the Most Common Student Loan Options
6 Ways to Fix Your Finances: Smart Tips for Resuscitating Your Bank Account
My 13-Year-Old Daughter Shares Her Financial Fears
Black Coffee: It Ain’t What It Used to Be
How Thinking Outside the Box Can Save You a Fortune
The Pros and Cons of Higher Interest Rates
Five Frugal Ideas for Fall Season Family Fun
I’m Not Rich, But I’m Financially Free; Here’s How I Got There
Black Coffee: Account Overdrawn

All-Time Most Popular:

  1. 1. 19 Things Your Millionaire Neighbor Won’t Tell You
  2. 2. Dear Friend: Here Are 41 Reasons Why I’m NOT Lending the Money
  3. 3. Why Your Expensive Luxury Car Doesn’t Impress Smart People
  4. 4. If You Can’t Live on $40,000 Annually It’s Your Own Fault
  5. 5. 21 Reasons Why Corner Lots Are for Suckers
  6. 6. 4 Smart Reasons Why College Isn’t for Everyone
  7. 7. 18 Fast Facts About Social Security Numbers
  8. 8. My Ketchup Taste Test: Upset! Guess Which Brand Topped Heinz
  9. 9. Why I Prefer a Spreadsheet to Track Expenses and Manage My Finances
  10. 10. Here’s a Simple Trick for Getting Credit Card Interest Charges Waived

Popular Now:

  1. 1. My Personal Journey to Financial Freedom
  2. 2. Why I Run My Household Like a Business (and Why You Should Too)
  3. 3. 5 Ways You Can Save Money on Groceries This Week
  4. 4. My 15th Annual Cost Survey of 10 Popular Brown Bag Sandwiches
  5. 5. 5 Frugal Tips for Family Fun During the Fall Season
  6. 6. Expensive 401k Mistakes People Make Every Day
  7. 7. 10 Ways to Get Fit for Little of No Money
  8. 8. The Ethics of Found Money: Should You Keep It?
  9. 9. Historical Gold & Silver Benchmarks for Wages and Commodities
  10. 10. 4 Good Reasons Why Some Quarters Are Painted Red

Copyright © 2023 Len Penzo dot Com · All Rights Reserved · Designed by Nuts and Bolts Media

© Len Penzo dot Com 2008–2023