| Rates
- Ask each lender and broker for a list of its 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
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
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. Some common fees
associated with a home loan closing are listed on the Mortgage Shopping
Worksheet in this brochure.
|
|
|
© Copyright 2006 - 2008 360Loan.com, Inc. All rights reserved. 6331 Nancy Ridge Dr., Ste B, San Diego, CA 92121 |
|
| |
|
|
