With banks now following strict underwriting requirements and with the prime rate expected to rise over the next few years, now is probably the right time to take a closer look at fixed rate mortgages over the variable or adjustable counterparts.

Many borrowers have already considered fixed rate mortgages. And not just because of our current economic climate. Some people simply prefer fixed rate mortgages due to the benefits they offer. Still, many are wary about getting the “best deal.” Here, we discuss some of things you can do to ensure you find the best fixed rate mortgages out there.

1. Ask friends, family and colleagues to see what they think about the financial institutions that offer great rates. It may come as a surprise that a local bank or one particular mortgage broker seems to offer better rates than what your current lender can even dream offering you.

2. Do your homework and never settle for the very first mortgage that is presented to you, no matter how appealing it might be. Make sure you do a bit of research to ensure you are indeed being offered a fair if not the best rate out there. By weighing your options, you will literally save tends of thousands of dollars over the term of your new fixed rate mortgage. There are many sites out there that monitor regional and national rates and will allow you to determine if the deal before you is indeed worth considering.

3. Consider paying points. If you’re concerned with obtaining a lower interest rate or more economic payments, you may actually want to consider paying points at closing so that you can receive a lower amount. Although this will require you to pay money upfront, this simple act could lead you to paying less money on your fixed rate mortgage.

In conclusion, finding the best fixed rate mortgage requires a bit of effort but could very well be worth it. Simply ask around, do your homework and consider paying points. By doing this, you will likely end up with a great rate that you can be proud to call your own.

This entry was posted on Wednesday, July 29th, 2009 at 5:09 am and is filed under Mortgage Loan Rates. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.