Most homeowners find that their monthly mortgage payment is by far their largest expense, so it makes good sense to try to find the most affordable mortgage interest rate when first shopping for a mortgage. Over the typical thirty-year life of a mortgage loan, as little as a tenth of a percentage point reduction in the interest rate can mean hundreds or thousands of dollars in savings.
The most productive method to finding the best mortgage interest rate is to invest the time and effort to learn about all of the possible mortgages which are available. This way, you will know the current mortgage market and you will have the knowledge to know what constitutes a good deal when you find it. The Internet is a great place to start your education as to mortgage rates; visit websites which compare mortgage interest rates across multiple lenders, such as bankrate.com; this will help you to get an idea of the range of current mortgage rates.
Once you have some general information as to mortgage interest rate ranges, it's time to start obtaining quotes from specific lenders. Once again, the Internet can be a huge help in this area, since websites like lendingtree.com and lowermybills.com are able to quote mortgages from a number of lenders after you fill out just a single application. This can save you much time and effort over contacting each lender separately.
Be sure to talk to local lenders, too. The mortgage loan market changes quickly and there are a large number of lenders, but don't let this intimidate you. The market for mortgage loans is competitive, and lenders will often offer to reduce fees or interest rates if they realize that you are educated about the market and that you are shopping around. A great place to start locally is to talk to a reputable mortgage broker who represents a number of lenders. In this way, you can relay all of your financial particulars just one time, and the mortgage broker can provide you with quotes from a number of lenders. Be sure to ask the mortgage broker how they are compensated; most mortgage brokers receive a fee for their services from the lender, but the rates and terms of the loans they broker are usually better than what you would be able to negotiate on your own.
With all the mortgage quotes you obtain, be sure to compare the mortgage interest rate, fees, and points so that you know what you will be getting with each option.