Minnesota Mortgage Rates Take Wild Ride in 2008

For those of us in the business who watch rates daily, 2008 will go down as one of the most interesting years in mortgage rate history. Looking at national averages for the 30 year fixed mortgage rates, the rate has ranged from a high of 6.48% in August to a low of 5.14% at the end of December. The lowest Minnesota mortgage rate that we could offer in 2008 was 4.5% and that rate was available for a matter of hours in early December. Currently Minneapolis mortgage rates are between 4.875% and 5.25% for a 30 year fixed rate, depending upon who you talk to and this leads in to the point I want to make.

Over the past 18 months the mortgage business has gone through some radical changes driven by state and federal governments, the economy and your local real estate markets. As a result, many loan officers have left the business and huge companies like IndyMac Bank and Washington Mutual have gone out of business. Unfortunately while this has forced most of the bad mortgage originators out of the business, it has also forced many good ones to seek other employment as well. It is more important now than ever to choose your mortgage loan officer wisely. So what should you be looking for in a Minnesota mortgage professional?

1. Work with a mortgage broker versus a lender or national bank as brokers have access to more options.
   
2. Use local people versus someone in a telemarketing room, someone you can find if things aren't going as planned and someone who will be at your closing.
   
3. Smaller mortgage broker have less overhead than the big companies and can charge less in closing costs
   
4. Look for someone with at least 5 years experience.
5. Choose someone who has purchased and owns a home and has personally been through the experience of purchasing and refinancing a home so they can relate to you and your concerns.

The competition for your mortgage business is fierce today so you want to be working with someone who can negotiate with you, without having to go ask their boss/manager/VP etc. An independent Mortgage officer working for a local broker has the greatest control over what rate and closing costs they charge you. If you are someone who likes to negotiate and you are looking for the lowest mortgage rate and closing costs you can get and you don't like surprises, choose a local Minnesota mortgage broker.