Who offers the best mortgage rates?

[thriftymom]

I've been looking around online at some banks and their mortgage rates and it doesn't look like anyone is below 6% at this point, (with zero points). The whole point thing is so confusing to determine whether or not it is even worth it to pay the extra up front to get the rate reduction. From what I've read, it depends on how long you have the loan for... does this mean that the points are purely interest and do not get deducted from the principle? Also, when I check with local banks, it would be a bank near where I'm moving to, right? (Not where I currently have my accounts, right?) Thanks so much for the help/info!!! You have been a great help so far with all of my questions!

[sweeps]

Yes, paying points effectively reduces your interest rate, but does not reduce your principal. Any points you pay are tax-deductible in the year you paid them. However, points only make sense if you plan on living in the house for a long time. Perhaps more important than the points is what the company is charging you in fees. Sometimes fees can run up to $10,000.

The location of the bank really doesn't make any difference, unless they limit the area in which they work. In that case, it would be where you're moving to, not where you're coming from.

[thriftymom]

Thank you... that was helpful.

[Fern]

check out www.bankrate.com for the best rates.

[thriftymom]

That link is great- exactly what I have been looking for! Thanks so much Fern!