Mortgage rates are as low as they have been in 32 years, according to Freddie Mac, but don't let bargain rates cloud your judgment.

Today's mortgage rates could put you in a home you couldn't afford earlier this year, get you in a larger home, a better neighborhood or a home laden with more amenities, but your rush to cash in could make you overlook due diligence always necessary when shopping for a mortgage.

Last week's 30-year fixed interest rate average of 6.22 percent was almost a full percentage point lower than the 7.14 percent average the first of the year, according to Freddie Mac. The price break amounts to a $152 a month savings on a $250,000 loan and about $350 a month on a $500,000 loan.

The savings are often worth the quest, but experts say consumers needn't be in a hurry to cash in before rates go up. Barring some unexpected major event, current market conditions point to low rates for months to come, giving consumers plenty of time to get the best deal.

Chances are, they say, a bird in the hand is a better deal than two in the bush.

"Don't be fooled by last minute loan deals. Lenders can match any rate out there, but some lenders love to come in after another lender has been working with a client and try to beat the deal the buyer already has. If a buyer finds a lower rate, there may be junk fees that end up raising the cost of the loan or that may require more money down than the buyer was expecting," says Blanche Evans, real estate education book author and publisher of AgentNews.com , a Dallas, TX-based online news service for real estate professionals.

"At worst, the buyer can end up paying double for items such as property appraisals, which hardly means savings. They can also put the home they want at risk because they have to requalify with the new lender. Changing horses in mid-stream may cost them in the long run, from invalidating their contract for sale to paying more for the loan," Evans added.

An educated buyer or home owner is aware of those kinds of practices. Before rushing headlong into the frenzy, get schooled. Mortgage and home buying counseling is time well spent.

"If you have a real estate agent, he or she is going to be trying to educate you and get you to meet with the loan officer. A great deal of what we try to do is educate the Realtor," said Robert Reid, president of Los Gatos, CA-based Princeton Capital.

Independent education and counseling also is available through local housing departments, social service agencies and non-profit groups. Some suggest getting your knowledge from a professional without the possibility of a conflict of interest.

The California Association of Realtors says harried buyers and refinancing home owners also must be particularly diligent about protecting themselves from predatory lenders who will use hurried consumers' vulnerability to slip in unnecessary costs.

Only a handful of states and municipalities offer predatory loan protections that go further than current federal regulations which, based on the growing predatory lending complaint and course case loads, don't go far enough. Absent adequate regulations, it's up to consumers to protect themselves in today's diverse mortgage market.

The association offers the following tips flustered loan shoppers should use while mortgage shopping.

Published: August 21, 2002

Use of this article without permission is a violation of federal copyright laws.

A journalist for 35-years, Broderick Perkins parlayed an old-school daily newspaper career into a digital news service offering editorial content and consulting services. Perkins' San Jose, CA-based DeadlineNews Group includes the flagship news site, DeadlineNews.Com, offering real estate, personal finance and consumer journalism, and a backshop, the Deadline Newsroom.