There are times when 2% may not seem like a big deal, but when you’re talking about a mortgage, paying 2% extra interest could be thousands of dollars. The good news is you can ensure you get the best mortgage interest rates by knowing where to look and what questions to ask.

Start With Employee Credit Unions

What many people don’t know is that employee credit unions often offer the best interest rates. Speak with your HR department to obtain documents about the credit union and what’s needed to prove your employment status with the company. However, never assume that this is the best rate you can find. Always compare at least 5 companies to find the best rate.

Consider the Reputation of the Lender

The reputation of a lender can save you a lot of time in shopping for the best interest rate. Before applying with the lender, read as many reviews as you can. Thanks to the internet this is easy to do. Look for reviews that mention unfair practices, such as bait and switch or short lock in times. Also, be wary of glowing reviews that seem too good to be true. Companies will often pay people to write five star reviews. This is why you must read as many reviews as possible from different websites.

Look Into the Fees

An interest rate may not be as good as it seems. In some cases, you may have to pay fees, referred to as points, in order to get that rate. Points can cost thousands of dollars. If you plan to have the loan for the full 30 years, it may be worth paying the upfront costs. However, if you plan to pay off your mortgage in 15 years or less, these fees may not save you a lot of money. Always read the fine print and ask about any fees.

Determine the Lock In Period

It takes at least 30 days to close a loan. Unfortunately, some lenders will provide a rate that is only locked in for 7 days. In other words, the information they provide on rates is completely useless. Always ask how long the rate will be locked in for to make sure it will still be good when you close.

Finding the best mortgage rate is essential for paying the least amount of money. Even a 1% difference can cost you thousands of dollars, maybe even tens of thousands. The good news is that by being educated, you can make the best decisions and get the best rate. For more information about loans and mortgages, visit