Your Mortgage Rate Compare and Save
by Dale Ronewicz
Published on this site: July 1st, 2005 - See
more articles from this month...
When trying to obtain the best mortgage rate compare offers from
several lenders or brokers. Know how much of a down payment you
can afford, and find out all the costs involved in the loan. Knowing
just the amount of the monthly payment or the interest rate is not
enough. Besides your mortgage rate compare information about the
loan amount, loan term, and type of loan from varies lenders and
brokers. The following information is important to get from each
lender and broker:
Mortgage Rate
Compare each lender and broker and ask for a list of current mortgage
interest rates and whether the rates being quoted are the lowest
for that day or week
Ask whether the rate is fixed or adjustable. Keep in mind that
when interest rates for adjustable-rate loans go up, generally so does
the monthly payment.
If the rate quoted is for an adjustable-rate loan, ask how your
rate and loan payment will vary, including whether your loan payment
will be reduced when rates go down.
Ask about the loan's annual percentage rate (APR). The APR takes
into account not only the interest rate but also points, broker
fees, and certain other credit charges that you may be required
to pay, expressed as a yearly rate.
Points
Aside from your mortgage rate compare Points. Points are fees paid
to the lender or broker for the loan and are often linked to the interest
rate; usually the more points you pay, the lower the rate.
Check your local newspaper for information about rates and points
currently being offered.
Ask for points to be quoted to you as a dollar amount rather than
just as the number of points so that you will actually know how
much you will have to pay.
Fees
Besides Points and mortgage rate compare fees.A home loan often
involves many fees, such as loan origination or underwriting fees,
broker fees, and transaction, settlement, and closing costs. Every
lender or broker should be able to give you an estimate of its fees.
Many of these fees are negotiable. Some fees are paid when you apply
for a loan (such as application and appraisal fees), and others
are paid at closing. In some cases, you can borrow the money needed
to pay these fees, but doing so will increase your loan amount and
total costs. "No cost" loans are sometimes available,
but they usually involve higher rates.
Ask what each fee includes. Several items may be lumped into one
fee.
Ask for an explanation of any fee you do not understand.
Also, besides Points, Fees and Mortgage rate compare the responsiveness
of lenders. Make sure you feel comfortable with the lender you choose.
Remember they're working for you.
Your Mortgage Rate Compare and Save was written by Dale Ronewicz
(American-Lenders.org). To read part II of this article please visit:
http://www.american-lenders.org/mortgage_rate_compare
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