You may be bombarded with ads claiming the lowest rates. In fact, many say you can reduce your payments by hundreds of dollars by going with their program. If only it was that easy. Finding the right home loan or refinancing deal can involve a lot of work.

You have to shop around. Look at different mortgage lenders to find the best interest rates and terms. I suggest that you decide exactly what you are looking for before you start looking for lenders. Do you want a fixed rate mortgage or an adjustable mortgage. There is tons of information about mortgages available on the Web. Know how much you want to put down, how much you want to finance and how long you want to finance. Believe me; you don't have to worry about not finding a lender who has what you need -- it might take a little work, but it is possible. If you are prepared, have good credit and are financially in order, you will have no problem finding the perfect financing.

You don't even need to leave your house to start your search. The internet is an excellent place to start looking for mortgages. Not only will you find thousands of mortgage companies, you will also find lots of valuable information. Many sites will be familiar to you from television ads. Look for the lenders and banks you recognize. The largest companies offer good, sound information. They can also be trustworthy.

You should never give any personal information to anyone you aren't sure of, whether by internet or telephone. It is best to handle all transactions by phone or in person. Have the lender call you.

You can also look for lender in the local newspaper. Just flip to the real estate section. Many lenders list their rates. But remember, this is a newspaper, so the rates may be anywhere from four to 10 days old. There may have been a shift in rates. When you call the mortgage company, don't mention the paper's rate. Instead, you should ask for the lowest rate on the type of mortgage you are looking for.

You may not have thought of this, but ask a real estate agent. They are in the business of selling homes, and most homes are financed. They will know which local lenders offer good rates. In fact, many real estate agencies offer mortgage services. The agency may also be able to handle the title and escrow details, install the alarm systems and perform appraisals. Any good agent can give you three recommendations.

Simply take out your phone book and start calling the local lenders and banks. I've done this several times. Ask for their rates and terms on the type of mortgage you are interested in. They will usually ask some questions about the type of home you want to purchase, how much you want to put down and other general questions. Be prepared and know what you want to ask them in advance.

You can also call your local housing authority. This is an excellent source for information. It may be that you could qualify for certain programs, such as those for first-time buyers. There are also programs that include down payment assistance and low-rate loans. If you qualify, you may be able to get a mortgage below the market interest rate.

Searching for the best rates and terms will take a little time, but it can save you tens of thousands in interest payments. Take a little time to make the best decision for your financial future.

Martin Lukac, represents, #1 Loans USA (http://www.1LoansUSA.com), a finance web-company specializing in real estate/mortgage market. We specialize in daily updates, rate predictions, mortgage rates and more. For mortgage rates please visit http://www.RateEmpire.com