RateJab is a powerful technology solution to help you cut through the noise and find the best possible deal. Our pricing software is currently integrated with the top 50 mortgage lenders in the country. Some are popular companies like Quicken Loans and Bank of America but others are wholesale lenders that you probably would not recognize by name. The following describes how we go about finding you the lowest possible mortgage rate.
Step 1 – Find the Right Product
To find the best mortgage rates, the first step is to determine the type of mortgage product that best fits your scenario. Some lenders specialize in certain types of products and therefore have the best rates for only those loans. For example, a lender may have great pricing for FHA loans but their pricing for conventional mortgages can be worse when compared to other companies.
Your down payment and credit score are the two biggest factors when determining which loan product to choose. In general, if you have a good credit score (720+) and have at least 5 percent to put down, then a conventional mortgage will give you the best overall deal. If your score is less than 720 and you do not have a lot of money for a down payment, an FHA loan is probably your best bet.
Step 2 – Price it out then Re-Price
Mortgage rates are always changing so it’s important to always check for updated pricing. Also, some lenders have daily specials on certain products and can suddenly offer more aggressive rates for those kinds of loans. Rates are first posted in the morning, but depending upon the day’s economic news, mortgage pricing can change multiple times. The best way to determine where rates are compared to previous days is to track the 10 Year Treasury Note. If the 10 year bonds are increasing, mortgage rates on that day will also typically rise.
RateJab: Always Close with the Lowest Rate
Our software makes finding the best mortgage deal easy. We can price out any type of loan instantly with 50 lenders nationwide to determine who has the best rates on that specific day for your specific type of loan. You, the borrower, essentially have 50 of the country’s largest mortgage companies all competing for your business. Even a small fluctuation in rate can make a huge difference. For example, a rate 4.125% vs. 4.000% on a $400,000 mortgage means you will be paying $5,000 more in interest over 10 years. Over the life of the loan, the costs will be tens of thousands of dollars higher.