who is the Best Mortgage Lender ? I just walk into my bank and they gave me 30 year fixed rate with 6.56% Interest on it? What are the things i need to consider before i lock my Loan? Do i apply with different other places so i can compare all the Rates ?  How much time does it actually take to get the loan becoz we have a closing almost in a month. Any help is appreciated.

 

 

Geetika,
30 yrs fix for 6.56% is typical rates now. Is there any points involve for that rate? If not then it's a good deal. Since housing market is very shaky, have seller cover some if not all the closing cost, and most importantly, bargain like south Asians.
Good luck,
SS

Geetika, coupole of things here.

1) If you're in the US, 6.56% is about 1.56% higher than the prime. That's too much money in interest you're going to pay. The lmortage lending revolves around prime typically. This mean, I wouldn't lock it at 6.56% for 5 years, let alone for 30 years.

2) If you're in Canada, the prime rate is even lower. You can get far better rates in Canada than a whopping 6.56%.

3) You sure this rate is for 30 years? I've never heard of a lender who's going to give a flat interest for that long. Typically, they all give you a fixed rate for first 5 years or variable rate of a specific percentate point around the prime for up to 5 years.

4) Shop around. Historically, the mortgage lending rates have always revolved around the prime and the prime stays around 5, plus/minus.

5) If your creditworthiness is good, I think you can get better rate than 6.56%. Look for something that's less than 6%, around 5.5%. Makes a lot of difference.