Here Is How to Find the Lowest Mortgage Rates

Mortgage rates are the lowest they have been in years. But to find the best rate, potential homebuyers must shop around or risk being locked into a less-than-stellar mortgage. The national average is a helpful guiding figure, but actual rates vary by location and lender—some areas have rate spreads of a full percentage point. A few locations have it the worst: For example, if residents of San Francisco only go to one lender to scope out rates, they risk paying an extra $66,000 in interest by the end of their loan term. But if they look around, they can save up to $2,000 annually. No matter where a potential homebuyer lives, however, they can benefit by doing research before signing any loan agreements. 

You’ve seen the headlines: Mortgage rates are low—like really, really low. In fact, just last week they hit their lowest point in over three years. And with the uncertainty surrounding the coronavirus outbreak? There’s a chance they could go even further.

Still, it’s important to remember that these are average rates. The numbers reported by Freddie Mac and the Mortgage Bankers Association each week speak to broad trends—not rates per credit score bucket, loan-to-value ratio or even geographic area.

So while those average rates might be low on the surface, that doesn’t mean every borrower is going to get them—especially those who don’t shop around.

A new analysis from loan marketplace LendingTree is case in point. The study looked at mortgage rate spreads per borrower across all major metros in the U.S. The major takeaway that emerged: Comparison shopping is important no matter how low rates seem to go.

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