The problem with trying to get the best mortgage rate is not in the percentage of interest that you will sign up with, most mortgage companies will basically have the same rates or not too far from each other for it to be of much difference.
Looking at More than Just the Rates
The best mortgage rates are more than just numbers telling you how low the interest is on your loan, it's those low rates coupled with reasonable conditions on keeping those rates as low as advertised. So before you jump in and put up your property as collateral to a deal that seems too good to be true, take a second look at why the institution is giving you those rates.
What Can Affect Your Rates?
The most common thing that will affect the interest rates on your mortgage would be your ability to pay the amortizations on time. Oftentimes, the best mortgage rates apply only during that grace period in which you are expected to pay that amortization, say on or before every 15th of the month. Should you be on default and pay on the 16th (sometimes there is a three day grace period, so look into that as well), your mortgage rate may shoot up from 5.5% to 7.9%, plus the fines, fees and penalties applicable. While this practice may seem unpalatable to you, it is completely legal and quite broadly practiced. If you have a problem in understanding the conditions of the contract in which you can avail the best mortgage rates that they can give, or if it looks that the amortizations are too big, then remember that "best" is a relative term, and look for deals that are better for you.
Another thing that will affect your rates is your rating, the better your credit rating, the lower the best mortgage rate available to you. Credit rating is something that wil be easy enough to check, and if your rating is only good, do not expect to get the same rates as people who have pristine credit records. The difference in the rates is rationalized by the forgone conclusion that people with better credit ratings are less of a risk for non-payment.
Reading Between the Lines
For your part, getting the best mortgage rate is a good idea on the sunset of the mortgage deal because it would seem like you are paying less interest for the money that you borrowed. Just remember that sometimes lending companies will give low rates to hook you in on a deal that may be hard for you to actually fulfill.
The Right One
This is not to say that all mortgage companies are out to get you, there are very good ones who will give you good rates at reasonable terms. It is only saying that you should not rely on numbers alone. Good credit companies would rather get their loans paid than take your house. Bad ones will make sure the loan is paid even after they take your house.
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