Sep 21, 2023


Home Tips

Want The Best Mortgage Rates in 2023? Here's How

How to Shop for the Lowest Mortgage Rate - A Comprehensive Guide in 2023

How to Find the Best Mortgage Rates in 2023 If you are looking for a new home or thinking of refinancing your existing one, you may be wondering how to find the best mortgage rates in 2023. 

The mortgage rate affects your monthly payments and the total cost of your loan, so getting a lower rate can save you thousands of dollars in interest over the life of the loan.

But how do you find the best mortgage rates in 2023? The answer is not simple, as there are many factors that influence the mortgage rates, such as the type, amount, and term of the loan, the lender and the loan product, the market conditions and the economic trends, and your personal and financial situation and qualifications. However, there are some tips and strategies that can help you with your mortgage rate shopping and help you get the best deal on your mortgage. Here are some of them:

  1. Call as many mortgage brokers as you can

To find the best mortgage rates, it’s crucial to shop around and compare offers from a variety of lenders. This includes banks, credit unions, online lenders, mortgage brokers, and aggregators. Each lender type may offer different rates, fees, and terms based on their business model, risk appetite, and customer base. By mortgage rate shopping from multiple lenders, you can gain a comprehensive understanding of the market’s range and average rates, and identify the lender that provides the most favorable terms and interest rates for your circumstances. Online tools and websites can be used to compare rates from multiple lenders simultaneously. Alternatively, you can directly contact lenders for quotes. Real estate agents can also provide recommendations, as they often have relationships with local mortgage brokers who can assist in finding the best deal for your situation.

Below example shows the power of rate difference. Assuming a 30 year mortgage with $400,000 principal Day 1.As you can see, the higher the interest rate, the higher the monthly payment and the total interest paid. For example, a 30-year fixed-rate mortgage with a 7.5% interest rate has a monthly payment of $2,119.59 and a total interest paid of $463,054.40, which is a whopping $61,738.60 higher than a 6.75% interest rate loan. 

  1. Choose your mortgage type

It’s also important to compare rates on different types of mortgages. Options include fixed-rate, adjustable-rate, conventional, FHA, VA, USDA, jumbo, and more. Each mortgage type has its own pros and cons, which can vary based on your financial goals, credit score, down payment, loan amount, and other factors. For instance, a fixed-rate mortgage offers stability and predictability, as your interest rate and monthly payments remain constant throughout the loan term.

Quick reminder of different specialty loans:

  • VA loans. They are mortgage loans that are guaranteed by the Department of Veterans Affairs for eligible military members and veterans. Some of the benefits of VA loans are:

    • No down payment or mortgage insurance required

    • Lower interest rates than conventional loans

    • Flexible credit and income requirements

    • Can be used to buy or refinance a home that meets the VA’s property standards

  • FHA loans. They are mortgage loans that are insured by the Federal Housing Administration for low-to-moderate income and credit score borrowers. Some of the benefits of FHA loans are:

    • Low down payment of 3.5% with a credit score of 580 or higher

    • Lower credit score of 500 with a 10% down payment

    • Competitive interest rates than conventional loans

    • Can be used to buy or refinance a home that meets the HUD’s minimum property standards

  • USDA loans. They are mortgage loans that are guaranteed by the U.S. Department of Agriculture for rural and suburban homebuyers. Some of the benefits of USDA loans are:

    • No down payment required

    • Low interest rates and fees than conventional loans

    • Income-based eligibility requirements

    • Can be used to buy or refinance a home that is located in a USDA eligible area and meets the USDA’s property and location requirements

  1. Choose your mortgage structure

When searching for the best mortgage rates, it’s worth considering less conventional rates and terms. While many borrowers gravitate towards 30-year or 15-year fixed-rate mortgages, exploring other options could lead to lower interest rates and long-term savings. For instance, 10-year or 20-year fixed-rate mortgages often have lower interest rates than their 30-year or 15-year counterparts, as lenders perceive them as less risky. However, these shorter-term mortgages come with higher monthly payments due to the reduced repayment period. Opting for a shorter-term mortgage is a good strategy if you can manage the higher payments and plan to stay in the home for an extended period. 

30-year mortgage, compared to a 15 year mortgage:

  • Pros

    • Lower monthly payments than a 15-year mortgage

    • More affordable and flexible for your budget

    • Better cash flow and savings for other expenses or goals

    • Improved debt-to-income ratio and credit score

  • Cons

    • Higher interest rate than a 15-year mortgage

    • More interest paid over the life of the loan

    • Reduced tax deduction

    • Slower equity build-up and loan payoff

    • Less financial freedom and security in the future

  1. Ask for the total cost estimate

When aiming for the best mortgage rates, it’s essential to obtain loan estimates for a comprehensive comparison of total costs. Don’t just focus on the interest rate—consider the overall cost of the loan, including fees, points, and closing costs. Fees are charges imposed by the lender for processing, underwriting, and servicing your loan. Points are upfront payments made to the lender in exchange for a lower interest rate. Closing costs are expenses paid at the end of the transaction, such as appraisal, title, escrow, and recording fees. These costs can significantly vary among lenders and impact the overall cost and affordability of your loan. Request a loan estimate from each lender. This standardized document discloses the key features and costs of the loan, enabling you to compare offers and choose the one that provides the best value for your money. Pay attention to the annual percentage rate (APR), which is the effective interest rate reflecting the total cost of the loan, including fees and points. The APR allows you to compare the true cost of loans—a lower interest rate doesn’t always mean a lower APR.

When it comes to securing a mortgage, there are several fees involved in the process. These fees can fluctuate based on the loan type, amount, term, lender, and your state of residence. Here are some common fees associated with a mortgage:

  • Application Fee: This fee, typically ranging from $100 to $500, is charged by the lender for processing your loan application. It often covers the cost of credit report checks, income and asset verification, and loan document preparation. This fee is generally non-refundable.

  • Origination Fee: This fee is charged by the lender for making the loan. It’s usually a percentage of the loan amount, typically between 0.5% and 1%. For instance, for a $200,000 loan with a 1% origination fee, you would pay $2,000. This fee may also include other charges such as underwriting, processing, and administrative fees.

  • Appraisal Fee: This fee, usually ranging from $300 to $600, is paid to a licensed appraiser who assesses the value of the property you wish to buy or refinance. The lender requires an appraisal to ensure the loan amount does not exceed the property’s market value.

  • Inspection Fee: This fee, typically ranging from $300 to $500, is paid to a professional inspector who checks the condition of the property you wish to buy or refinance. The inspection can reveal any defects, damages, or safety issues that need to be addressed before the loan can be approved.

  • Title Fee: This fee, usually ranging from $300 to $600, is paid to a title company or an attorney who conducts a title search and provides a title insurance policy. A title search verifies the ownership and legal status of the property you wish to buy or refinance. A title insurance policy protects you and the lender against any losses or damages that may arise from any defects or errors in the title.

  • Closing Fee: This fee, typically ranging from $300 to $600, is paid to a closing agent who oversees the finalization of the loan transaction. The closing agent, who may be a representative from the title company, the lender, or an attorney, is responsible for preparing and recording the loan documents, disbursing the funds, and transferring the title.

  • Taxes: These are the taxes that you have to pay to the state and local governments when you buy or refinance a property. They may include property taxes, transfer taxes, recording taxes, and stamp taxes. The amount and type of taxes may vary depending on the value and location of the property, but they usually range from 0.5% to 2% of the loan amount.

These are some of the fees that you may encounter when you get a mortgage. However, there may be other fees that are specific to your loan or your situation, such as points, prepaid interest, escrow deposits, flood certification, mortgage insurance, and HOA fees. You should ask your lender for a loan estimate, which is a document that discloses the key features and costs of the loan, within three business days of receiving your application. 

  1. Lock in your mortgage rate

Once you have chosen the lender and the loan that you want, you should lock in your mortgage rate as soon as possible. A rate lock is a guarantee from the lender that they will honor the interest rate and terms that they offered you for a certain period of time, usually 30 to 60 days. A rate lock will protect you from any fluctuations in the market that may cause the interest rate to rise before you close the loan. However, a rate lock may also prevent you from taking advantage of any drops in the interest rate that may occur before you close the loan. Therefore, you should only lock in your rate when you are confident that you have found the best deal and that you are ready to close the loan within the lock period. You should also ask the lender about the terms and conditions of the rate lock, such as the fees, the expiration date, and the possibility of extending or renegotiating the rate lock if needed.

  1. Consider Restate and other mortgage assistance solutions offers an innovative solution to lower your mortgage payments through home equity sharing. This unique approach allows homeowners to unlock the value of their home equity without taking on additional debt. Instead, invests alongside homeowners, providing them with cash today in exchange for a share of the future appreciation of the home. This reduces the homeowner’s monthly mortgage payment and provides them with extra cash to use as they see fit. It’s a win-win situation: homeowners get immediate financial relief and benefits from the long-term appreciation of the property. This model not only helps homeowners manage their finances better but also fosters a sustainable and shared prosperity in the housing market.


Getting the lowest mortgage rate can save you thousands of dollars in interest over the life of the loan. However, finding the best deal requires some research, comparison, and negotiation. Restate Homes can help you navigate through the challenges. Get a free consultation by calling +1 888-383-5170 (Toll Free) or email

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