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If you're a first-time home buyer, don't let your excitement over owning a home stop you from taking the time to compare mortgage rates. Not stopping to compare mortgage rates could result in being locked in to a non-competitive rate and throwing money away over the next 30 years.
Many first-time home buyers go immediately to their own banks or credit unions to get the loans that will help them buy their first home. You might think this preexisting relationship somehow guarantees you the best rates, but this is an incorrect assumption. When you take the time to compare mortgage rates, you'll find that many lending institutions offer much more competitive rates than the banks you're used to doing business with, even if you don't have the best credit rating. In addition, they may have fewer fees and less expensive closing costs, all of which add up to less money spent over the 30 years you have your mortgage.
|Jennifer Mathes, Ph.D.|