How to Shop for the Best Mortgage Rate on Long Island

Finding the best mortgage rate on Long Island can save you tens of thousands of dollars over the life of your loan. With prices higher than many other parts of the country, even a small rate difference matters. Here’s how to compare lenders, understand rate options, and secure the most competitive terms for your purchase or refinance.

Why Mortgage Rates Matter More on Long Island

Homes on Long Island often cost significantly more than the national average, which means:

• A lower rate has a bigger impact on monthly affordability.

• Interest savings add up quickly over the years.

• Small percentage changes can shift your buying power.

That’s why careful comparison shopping is essential.

Step 1: Understand What Affects Your Rate

Before comparing lenders, know the major factors influencing mortgage rates:

• Credit score

• Down payment amount

• Loan type (conventional, FHA, jumbo, etc.)

• Loan term (15-year vs. 30-year)

• Debt-to-income ratio

• Market conditions

Eric Berman REALTOR helps Long Island buyers review these factors before applying so they can present the strongest possible financial profile.

Step 2: Compare Multiple Lenders

Rates vary widely between lenders — sometimes by more than 0.5%.

When shopping, gather quotes from:

• National lenders

• Local Long Island banks and credit unions

• Online lenders

• Mortgage brokers

Ask each lender for:

• Rate quote

• APR (which includes fees)

• Loan estimate

• Discount point options

Step 3: Pay Attention to APR, Not Just the Rate

Two lenders might advertise the same interest rate, but fees can differ.

APR includes:

• Interest rate

• Origination fees

• Discount points

• Other lender charges

Comparing APRs gives you a clearer picture of the true cost of the mortgage.

Step 4: Ask About Rate Locks

Rates can change daily. A rate lock keeps your quoted rate secure for a set period (usually 30–60 days).

Make sure you understand:

• Lock duration

• Whether it’s free or has a fee

• If a “float-down” option is available (allows a lower rate if market rates drop)

Step 5: Consider Paying Points

Buying discount points can lower your rate and long-term costs — but only if you plan to stay in the home long enough to break even.

Eric often helps clients run break-even analysis to determine whether paying points is worthwhile.

Step 6: Don’t Just Look at the Lowest Rate

The best mortgage isn’t always the cheapest one upfront. Consider:

• Monthly payment comfort

• Total closing costs

• Whether you plan to move or refinance

• Long-term vs. short-term savings

A slightly higher rate with fewer fees may actually save you money.

Step 7: Get Preapproved Before Shopping for Homes

A preapproval letter strengthens your offer and lets you know exactly what price range fits your budget.

Eric Berman REALTOR connects Long Island buyers with vetted, competitive lenders who offer fast, reliable preapprovals.

FAQs

1. How many lenders should I compare when shopping for a mortgage?
At least three — ideally more. For trusted lender recommendations, contact Eric Berman REALTOR.

2. Will shopping around hurt my credit score?
Multiple mortgage inquiries count as one if done within a short window. Ask Eric Berman REALTOR for guidance on timing your applications.

3. Are local Long Island lenders better than national ones?
Not always, but they often understand local nuances better. Reach out to Eric Berman REALTOR for a mix of both.

4. How long should I lock my rate for?
Typical locks range from 30–60 days. Speak with Eric Berman REALTOR to choose a lock period based on your timeline.

5. What’s the biggest mistake buyers make when comparing mortgage rates?
Only looking at the advertised rate instead of the full APR. For help reviewing loan estimates, contact Eric Berman REALTOR.

Eric Berman, REALTOR®
Compass Greater NY
917-225-8596
eric@ericbermanteam.com
www.theericbermanteam.com