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
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.
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.
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: