Your Mortgage Rate Compare and Save

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