Times have definitely changed.  More than 7 out of 10 users shop onlne when looking for goods or services, but is that a good idea when looking for rates and a new mortgage?

Shopping online gives you a chance to compare prices but buying a blouse and finding out later you didn't get the best deal might cost you a few dollars, says Stacy Johnson of Money Talks News.  "When you're shopping for a house, the stakes are much higher."

"For example, suppose a website tells you the best deal on a $400,000, 30-year mortgage is 5.5 percent - when actually a 5 percent mortgage is available elsewhere. A half-percent may not sound like much," he says, "but on a $400,000 mortgage, it's $123.87 per month. Pay it for 30 years, and you're out an extra $44,593.20."

How Online Mortgage Searches Work:

If you are looking to buy a home, the online sites are a great way to figure out how much of a mortgage you can carry.  You simply put in the total amount of the loan, the kind of mortgage you want (30-year, 15-year, etc.) and where you live and it shows you all the details, including how much your monthly payment will be.  You can adjust it from there.

If you want to lower your rate, you enter the total you will need to refinance and the type of loan and where you live and it tells you what rates and what lenders there are in your area.

"Were the lenders that popped up on my rate search the best available in my area?" asks Johnson.  "I couldn't be blamed for thinking so. After all, the words, "the best and latest mortgage rates" were printed at the top of the results page. So I sorted the list by lowest APR and started calling lenders. After talking to several, as well as my existing lender, I picked one and closed the deal."

Are the Results the Best Results?

Not necessarily.  Don't kid yourself. Online sites are the same as newspapers and magazines.  Lenders pay to have their information displayed on the sites, just like advertisers pay to be in print.  The implication that these are "the best and latest mortgage rates" might not actually be true in your area, so starting online is a good way to educate yourself on the latest mortgage news.  But then, check with other local sources by phone or in person and always check with your present mortgage company to see what they can do for you.

Your REALTOR® is a good source to help you find a lender.  Call them and see what lenders they are using and the rates customers are getting.

Read:  The Market Won't Get any Better than This!

Read the full story at Money Talks News.

photo credit: Lonjho

Posted in Marketing, Buyer Resources

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