When searching for the best mortgage with the lowest interest rate, keep the following in mind:

You need to first determine what type of mortgage is right for you. If you’re not sure how long you will be living in the home go with the traditional fixed-rate mortgage (FRM). The rate and terms will not change during the life of the loan. This loan eliminates any uncertainty with your mortgage rate and payments in the future. It has the same payment throughout the life of the loan.

If you’re looking to move in to a home, and need a mortgage that will give you a lower payment than a fixed-rate mortgage then you can look in to an adjustable-rate mortgage (ARM), which are appropriate for borrowers who need the lowest possible payment now, but expect to have the ability to afford a larger payment later. The main difference between the fixed and adjustable rate mortgage is that after the ARM’s term has matured, its rate will change. For example a 3-year arm has a set rate for 3 years, and will adjust after that. Once it adjusts the rate can be higher or lower than what your rate first started at depending on market conditions when it adjusts, and generally changes on an annual or semi-annual basis. Most people end up refinancing before the term is up.

Last, if you’re looking to refinance your mortgage to lower your payments and you’re looking to move within the next few years, then an adjustable-rate mortgage with an "interest only" option would be ideal. Here’s why, when you pay "principal" you lower your mortgage balance by the portion of your payment that goes to the principal. The interest only loan allows you to keep that portion that you would pay to the principal in your own pocket. The less principal you put in, the more money you keep in your pocket today. Regardless any principal you pay in a non-interest only loan, you will get back, but only after the sale of your home. Essentially your home would act as a piggy bank that’s earning you no interest and decreasing your monthly cash flow when you aren’t looking to build equity.

Last thing to remember when shopping for a mortgage is to compare apples to apples, meaning a fixed-rate mortgage offer with another other fixed-rate mortgage offer, or an adjustable-rate mortgage with another adjustable-rate mortgage and so on. Some offers may have upfront points, while others may be quoted without points.

Traditional mortgage shopping required you to go from bank to bank, giving your personal information to each banker one at a time, answering the same questions over and over and having numerous inquiries made to your credit report for a single mortgage.

Then came the Internet, if you were looking to refinance or obtain a new mortgage you could simply complete a form and have mortgage brokers and lenders call you and compete for your business. This was a big improvement and helped consumers save time, but it still wasn’t completely effortless just yet.

The only difference between the traditional method and completing an online application, is that the brokers and lenders would call you, saving you a trip to the financial institutions, but you still had to answer the same questions over and over, continue to receive phone calls long after your needs have been met, still had numerous inquiries to your credit report, and now exposing your personal information to a total stranger which can lead to potential identity theft in this day and age.

Along came brokerbids.com. How are we different? Well its simple, if your shopping for a new home loan or looking to refinance your existing mortgage, you complete a single form online that gives brokers all the details they need (this takes care of answering the same questions over and over). We obtain one credit report for you free of charge, and extract the necessary details that brokers will need in order to make precise offers (you now have 1 inquiry instead of 10, also brokers cant see your name, address, social security number, only credit score, payment histories, balances, etc.). Best of all, there are no phone calls throughout our process, rather each broker makes their offer to you online and is accompanied by a good faith estimate that outlines the loan terms, rate, and fee’s associated for that mortgage. Each of our brokers has been verified by their state issued ID and credit card on file.

You will receive up to 15 offers for your mortgage loan; if you have questions regarding your offer you may exchange private messages with the broker to clarify details for your mortgage. Once you have found the best deal that fits your needs you may then select the offer and proceed with your mortgage needs with the terms that you have both agreed upon. After your loan has been completed you can return and leave a feedback for your broker, this helps to ensure that you get what you were promised.

We eliminate all the headache’s associated with obtaining your new loan. The BrokerBids process is fast, simple, and best of all its FREE! Apply today at www.brokerbids.com