Mortgage Quotes
Mortgage quotes are basically an estimate. The lender gives you this quote so that you know what you can expect for the interest rate and term on the mortgage.
Quotes are available for all mortgage types. You can get a quote on a 6-month mortgage or a 10-year mortgage; it all depends on what you are looking for. Plenty of lenders want to give you quotes on the type of mortgages that will make them the most money. But if you do your homework you will be prepared to request the type of mortgage that will be best for you.
What type of mortgage should you get a quote for? Maybe these tips can help:
- If market interest rates are decreasing, you may want to look into a shot-term mortgage. You can get a term as short as one year if you have a good credit rating. Take the time to read credible sources to estimate if market rates will continue to decrease, level off or increase. This information can tell you if it is best to lock in your rate or to have a shorter term to benefit from lower rates in the future.
- If interest rates are increasing, you may want to consider a long-term mortgage. Some do not like to lock in rates for more than 5 years, thinking that it will end in higher interest rates in the future. It all depends on the market and your current situation. If you choose a long-term mortgage, check to see if you have the option of lowering your rate in between a term.
- Get quotes for mortgages that offer good prepayment and payment options. You may have to forego a really low interest rate, but don't give up anything more than that. You may have the desire to make all the extra payments you can, but may not be in the position to do so when the time comes. With this in mind, you want the option to pay as much as possible, but still have a decent interest rate if this does not happen.
Make good use of the Internet. A lot of lenders offer free mortgage quotes on their websites. This is a very convenient and informative option.
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