How to Find Average Mortgage Rates
A mortgage is often the largest loan a person will take out in their lifetime. You could easily pay tens or hundreds of thousands of dollars in interest over the life of a mortgage. Given so, it would make sense to dedicate time to researching mortgages to make sure you’re getting the best deal possible on such a large loan. However, some borrowers know nothing about average mortgage interest rates or how to find them.
Instead of spending even just a few minutes researching interest rates, many rely on a referral from a real estate agent or trusted friend and simply hope they’re getting an average mortgage rate. Don’t simply hope. Here’s what you need to do find the necessary information to make sure you’re getting a good deal on your mortgage.
Know Your Credit Score
One large factor used in determining the interest rate you’ll qualify for when applying for a mortgage is your credit score. The higher your credit score is, the lower your mortgage interest rate should be. Each lender will base their rates off of different credit score criteria. In general, you must have a credit score of 720 or higher to qualify for the best interest rates.
Even if your credit score isn’t 720 or higher, you can still qualify for a mortgage as long as you meet your lender’s minimum credit score requirements. Lenders will make adjustments to the interest rate or other costs, such as points paid, to cover the additional risk of lending money to a borrower with a lower than ideal credit score. If you want to know what your credit score is, you can get a free credit score using My LendingTree. If you’re not happy with your current score, work to raise it before you apply for a mortgage.
Research Current Average Mortgage Rates
If you ask your local banker for the current interest rate on a 30-year fixed rate mortgage, they will likely quote you their best interest rate possible. Unfortunately, one bank’s interest rate isn’t necessarily the current average mortgage interest rate available. Different lenders have different costs to run their businesses and different profit goals. These factors, among others, mean different lenders may quote you different interest rates on the same type of mortgage even if you get the quotes on the same day.
Instead of asking just one lender what their interest rate is, you can do just a bit of research to find the information you desire. Many websites, including LendingTree, offer daily updates on the current mortgage interest rates being offered. When you’re looking online to find mortgage interest rates, make sure you read the details on the situation used in the quoted event. Most quotes you find will be based on an ideal loan with an ideal credit score.
Get Multiple Mortgage Quotes
Researching mortgage interest rates will give you a general idea of what to expect when you apply for a loan. Unfortunately, the average situation may not apply to your particular situation. In order to make sure you’re personally getting the very best mortgage loan, you should get multiple mortgage quotes. If you only apply for a mortgage with one lender, you have no idea whether the lender is truly offering you the best possible rate.
Getting multiple quotes allows you to ensure you aren’t being quoted a higher rate just because the lender would like to make more money on your loan. If you get quotes from multiple lenders offering you similar interest rates and terms, you’re probably getting a competitive quote. One way to save time and get multiple mortgage quotes with one easy application is using LendingTree.
Pick the Best Loan for You
After you compare mortgage offers, you can pick the loan that best fits your situation. Keep in mind, the mortgage with the lowest interest rate or lowest payment may not always be the best deal for you. Different lenders offer a variety of mortgage products. Each lender will also have different costs and fees related to their mortgage loans. Make sure you compare all aspects of the mortgage offers, not just the interest rates, before picking the right mortgage loan for you.