Banks and mortgage lenders use the marketing techniques like any other business. The lowest mortgage interest rate advertised is only available to the best applicants. This could be less than 5% of the applicants to similar mortgages. Sometimes, a bank may decide to advertise their best selling product. In that case, more people qualify for these mortgages. To have a rough guide of mortgage rates a person may qualify, the mortgage seeker may get a quick online quote. This requires entering basic details and describing applicant's circumstances. For example, the quote system would ask to describe credit score and give options as fair, good and very good. Some broker sites offer up to 4 mortgage quotes with one form filling. The web user may be able to get a mortgage rate quote in less than half an hour.
Some lenders may attach strings to their lowest mortgage rate. They may require the applicant to buy home insurance and life insurance from the lender. You may need these products anyway. however, the prices quoted may not be competitive. This is how the lender expects to make up for the low interest rate.
Sometimes, the lowest interest rate may be totally irrelevant for certain applicants. For example, someone who is looking for a 15 year fixed rate mortgage should not care how low the adjustable rate mortgages are. Fixed rate mortgage and adjustable rate mortgage are different products and their rate should not be compared directly. Applicants should compare similar products with similar terms.
The advertised mortgage interest rates should not be taken on their face value. Every mortgage product has its own qualification requirements. In addition, every mortgage applicant's circumstances are different. Even though mortgage applicant may qualify for the best rates, he may choose a higher interest product, because it meets the applicant's objectives best. For example, the applicant may want to put less down payment or borrow more than the lower interest product would allow. In summary, every mortgage applicant has got the lowest interest rate mortgage product for their circumstances, even applicants with bad credit. This is not necessarily the lowest interest rate offered by a certain lender; nevertheless it is the best product that fits individual requirements. To be successful in their mortgage search the applicants needs to identify what is most important to them and look to achieve their objectives as best as they can.
One other important point is that the applicants should not apply for a mortgage that they are likely to be turned down. Each rejected mortgage application gets registered against the person's credit score and other lenders see it. Lenders do not like to offer mortgages to people who has been turned down by other mortgage company. That is why the mortgage applicants need to do their research. Make use of mortgage quote systems as these systems would give mortgage seeker a good idea of rates he could get without going through the application or credit score check process. Consider these as a respond to a customer specific enquiry. Enter your details as truthful as possible to receive more personal quote.
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