Shopping for Real Estate Interest Rates in Key West

Key West Lenders are very competitive. Real Estate Interest rates and fees charged to originate a loan vary among financial institutions. Typically, lenders charge the prospective buyer a fee to obtain a loan--this may be a flat fee or a percentage of the loan (one point is 1 percent of the loan amount).

One lender might offer an 8 percent, thirty-year fixed-rate loan with a flat fee of two hundred dollars. A second lender might offer a 7 percent, thirty-year fixed-rate loan with two points. A third lender might offer the loan without points or other fees but at a higher interest rate. This could be advantageous for a buyer who wants to put as much as possible into his or her down payment. Another buyer might prefer to pay higher points in exchange for a lower interest rate because the IRS allows points to be deducted against taxable income in the year the home is purchased.

You can and should shop for rates locally in Key West and nationwide. As noted earlier, a 1- percent change in the interest rate on a $100,000 thirty-year fixed-rate loan could mean a seventy-five dollar difference in each monthly loan payment. The Key West market is competitive. Local Key West Lending institutions often will offer lower-than-market rates to attract real estate borrowers.

There are several ways to shop for real estate home loans. By far the easiest way to do this today is via the Internet, which is awash in interest rate information and mortgage brokers that will compete with each other to get you the best deal. Most websites related to mortgages also feature useful mortgage and home finance calculators. Search for "mortgage" and the name of the state where you are planning to buy for the first cut of these websites.

In addition, many Key West local newspapers carry a weekly listing or sampling of rates offered in Key West areas. Rates can change very rapidly, which might mean that these listings may not be up to the minute. However, they can give you a good general idea of the market. In addition, several reporting services offer details on a variety of real estate loan types and interest rates available from Key West area institutions. Prices of these services range from ten to thirty dollars. Therefore, you may want to use a reporting service only when you are ready to apply for a real estate loan. You also can call a Key West local real estate mortgage broker for information.