How to Find the Best Mortgage for You Today

Finding a mortgage these days, despite all the negative economic news we are hearing in the media, is easier than it has ever been.

Before you take the leap, though, there are a few things you should think about.

The first question that you might want to ask yourself is how long you intend to occupy the property.

Fixed or adjustable?

If you’re reasonably sure that you are going to be there for the short term, an adjustable-rate mortgage might be something worth looking into.

If you are unsure, consider going with a  fixed-rate mortgage.

The reasons for this are twofold.

First, you protect yourself against rate increases that an adjustable-rate mortgage would have.

Second, if you do wind up staying and want to refinance into a fixed-rate loan, chances are that the rate will be higher than it is now in early 2010.

Rates have been at record lows for a long period of time.

When the economy turns around, and it eventually will, both fixed and adjustable rates will increase.

Comparing mortgages

These days, mortgage disclosure laws for brokers and banks alike continue to get more stringent, with the best interest of the consumer in mind.

As a result, you are now truly able to compare apples to apples.

You should take the time to talk to different lenders and see what they have to offer, and then compare their documents to see which one really is offering the best deal.

It’s also important to understand what’s best for you in the long term.

If you’re planning to stay in the property for an extended period of time, say, 20 years or more, ask how getting a lower rate would benefit you, even if you have to pay more in fees to get it.

A savings of even $30 per month over 20 years will amount to $7,200.