With mortgage interest rates plummeting to all-time lows in 2020, not every mortgage lender is offering the cheapest rates. The cheapest mortgage lender has the capacity to refinance, and not all of them do due to massive demand. Therefore, the cheapest mortgage lenders are keeping rates artificially up to stem the demand.
After exhaustive research, I believe the cheapest mortgage lender will come from Credible, my favorite mortgage marketplace where prequalified lenders compete for your business. You can get competitive, real quotes in under three minutes for free. Interest are at all-time lows. Take advantage!
Another lending cheap mortgage marketplace is LendingTree. The only issue with LendingTree is that they are very aggressive in following up for the next 3-5 days after applying.
LendingTree revolutionized the way consumers get a mortgage about 22 years ago. In the past, consumers had to pitch banks to get a mortgage or refinance their loan. Today, thanks to LendingTree's innovation, banks now pitch you to win their business. After all, when banks compete, you win.
LendingTree is one of the cheapest mortgage lenders due to its longevity, healthy balance sheet, proven track record and massive market place. The larger your mortgage lending market place, the cheaper your interest rate and borrowing fees.
Cheapest Mortgage Lenders
The cheapest mortgage lenders have these things in common:
- Well capitalized
- Good history
- Competitive rates
- Strong marktplace
Free Quotes, No Obligation
The great thing about LendingTree and Credible is that you can apply for a no obligation loan online in minutes, and within the hour, you'll get competing banks e-mailing and calling you about their best rates.
You, the borrower doesn't pay LendingTree or Credible a penny. It's the banks who pay LendingTree to compete for your business. As a result, lenders are motivated to try and get you the best loan possible to win your business.
Be forewarned the celerity of the lenders can be quite surprising to those who are not used to such quick service. Their e-mails and phone calls will die down after several days once they realize you have gone with another lender, or are not interested in their offers.
I like to use LendingTree and Credible to get quotes in writing and then bring these quotes to my main bank to get them to match or beat the LendingTree rate. Using this strategy, I was able to get my bank to refinance my jumbo loan to a 2.375% interest rate from their initial 2.5% offer.
Why You Should Refinance Now
Mortgage rates have finally started to tick back down after Donald Trump became president due geopolitical concerns and reform delay.
It behooves you to at least check what the latest rates are if you have not refinanced in the past six months. If you are a new homebuyer or want to refinance, it's important to get as many bids as possible to get the best mortgage rate and terms as possible.
A big part about growing your net worth is doing everything possible to minimize expenses. I believe everybody should at least own their primary residence to get neutral the ever rising property market. Once you own, it's all about lowering your property taxes and getting the best mortgage rate possible.
The yield curve for 2020 is now inverted. This bodes a tremendous opportunity for homeowners and homebuyers.
Take Advantage Of Lower Rates
The goal is to save money by locking in a new low rate now before they go even higher. I've refinanced three different properties over the past 13 years multiple times, and my combined interest savings a month is roughly $4,000. That adds up to well over $1,000,000 in interest savings over the life of the loans!
If you can find a home that's a good deal, you can afford the payments, and plan to stay there for 10+ years, then I would take advantage of record low interest rates and buy property.
Check out Credible, my favorite mortgage marketplace where prequalified lenders compete for your business.
About the Author: Sam began investing his own money ever since he opened an online brokerage account in 1995. Sam loved investing so much that he decided to make a career out of investing by spending the next 13 years after college working at two of the leading financial service firms in the world. During this time, Sam received his MBA from UC Berkeley with a focus on finance and real estate. In 2012, Sam was able to retire at the age of 34 largely due to his investments that now generate roughly $200,000 a year in passive income. He spends time playing tennis, hanging out with family, consulting for leading fintech companies and writing online to help others achieve financial freedom.
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