Try to take a week to compare how lenders’ interest rates and points compare each day. Make yourself a little chart. Rates and points are constantly changing. The change might be as small as 1/8 percentage point a day but they are still always moving. At the end of the week you can see which of the lenders tends to offer a better deal compared to the others. You can compare these rates to the average interest rates that are updated each day on www.hsh.com to be even more complete. You’ll soon know the price of credit as well as you know the price of a loaf of whole wheat or a gallon of milk. And it will become clear that one or two of those lenders tend to have the most competitive rates on most days.
There is one thing to keep in mind about the interest-rate quotes you find in newspaper real estate sections and on some websites. The quotes in the newspapers are several days to a week old. Rates can change a lot in just a few days so they are almost certainly not the rate that you will be quoted. Second, these rates are come-ons. Sometimes those rock-bottom rates call for paying 3 or more points and almost always they reflect the rates offered to borrowers with top credit scores. That’s why it pays to know your credit scores. Many of the websites will give you a customized rate quote based on your credit scores so take the time to get real rate quotes.
