Shopping around and asking banks and mortgage companies what their lowest interest rates are is not always the best method for finding the best rate. What each bank tells you their lowest interest rate is does not mean that is what you will qualify for. Many lenders and mortgage companies will quote rates that are either unattainable or the absolute lowest rate that they offer just wanting to get the consumer to begin working with them, make an application with them and get the mortgage process started. Then as the mortgage application process progresses, they will be told that there are rate increases for various items such as loan purpose, credit score, home type, etc... Therefore, you would be better off applying for a mortgage with 2 or possibly 3 mortgage companies so that they can provide you with accurate quotes up front instead of simply calling around and simply asking for rates without providing any information about yourself and your situation.

A low interest rate mortgage is an adjustable rate mortgage (ARM), variable rate mortgage or floating rate mortgage. This is a mortgage loan where the interest rate on the note is periodically adjusted based on an index.

A company that quotes the lowest interest rate may not be the best company to choose. Many will quote you a low rate without telling you about the number of points or high fees necessary to get that rate. Still others may quote you a really low rate they never intend or are able to give you. When you go to sign your loan documents, if you notice the higher rate, they will say, "rates changed." An honest professional will explain, up front, all fees and will give you the best and most competitive rates.

Getting the lowest interest rate for your mortgage depends on 8 items.

Employment History
Liquid Assets
Credit Score(s)
Loan-to-Value
Loan Amount
Income Documentation
Debt-to-Income Ratio
Bond & Security Rates

Lowest Interest is only one aspect of the mortgage application process. Obtaining the lowest interest rate available with the program that best suits your personal financial situation requires that you think about your total financial situation, not just the lowest interest rate possible.

The lowest interest is what most borrowers look for when shopping for a mortgage. However, borrowers should look at other factors before deciding. These factors include the following:

• Type of Mortgage (ARM or Fixed)
• Closing Costs
• Future Plans