Finding a Loan
Look at the loan programs and the interest rates offered by several different lenders. If you find a lender that offers a low percentage rate when all the others charge more, you will save some interest over the life of a 30-year term.

Compare different loans, loan types, and lending programs. Work with a mortgage broker who arranges loans from many different institutions. Choosing a mortgage can take weeks if you contact several lenders, but saving money is worth the time and effort.

Be sure to compare loans thoroughly:

• Compare different lenders or mortgage brokers. One of them is bound to offer the loan that's best for you.

• It is not all about interest rates. Getting a low interest rate is important, but it won't be beneficial if you have to pay various up-front points and fees.

• Understand how points and rates work. A point is prepaid interest, and each point you pay equals one percent of your loan amount. If you get a $100,000 loan and pay 3 points, that's $3,000 just in points. Paying more points may yield a lower interest rate over the loan term.

• How long will you keep the loan. If you're going to move to another house in a few years, consider an adjustable-rate mortgage since you may be able to sell the house before the rate increases. If you plan to stay longer than a few years, a fixed-rate mortgage may be an attractive option because your interest rate remains the same for the term of the loan.