The Search for Lower Interest Rates - refinancement hypotheque

Most of us are used to shopping for almost anything on the internet today, and interest rates are no exception. How do you find the lender with the most advantageous rates?

With some time and a good internet connection, you will have no problem finding the best rate. Regardless of which one you choose, it will prpbably work in the same way as all of the others: you enter your location, and it lists the array of rates available there.

The speed and ease with which this is done is wonderful, but unfortunately, interest rates are not the only component of a mortgage.

The function of these sites is to simply gather and report rates from different banks. They offer a valuable service in that your search is quick and easy, but this information is not insider information to these sites-you can get them easily by getting in touch with the banks yourself. - courtier hypotheque

The rate that will be listed, therefore, is simply the best rate the bank can offer, and this is to its best customers, not necessarily to all of them. You may find out that you are not a candidate for that rate if your credit qualifications are not those of their prime customers.

A prime borrower is a borrower who has very high FICO scores, has some indication of job security, and has a very good history of paying his bills on time. If your credit history lacks in one or more of these areas, you cannot expect the best rate, but one that is revised for a poorer risk. So if your FICO score is in the 600s, you just started a job, or if you have some problemswith late bill payments, you cannot expect to get the best rate quoted by the lending site, but one that will be higher, maybe much more so.

The companies who sponsor these web sites want you to contact them so they can give your application to the appropriate lender and earn a commission if they secure the loan for you. This is standard practice, and they are doing you a service by making it easier for you to find lower rates.

But if all they do is try to lock you into a loan, without working with you in terms of your own unique position, you will not be getting the best mortgage for you.

There are so many kinds of loans available today, including whether or not the rate is fixed or floating, for how long the term of the loan is, whether it is a balloon loan, etc. The one that will work best for you depends on your own situation, and the only way you can learn that is to work with a broker who is willing to devote the time to discuss your unique circumstances and design the best package for you.

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