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The Lowest Mortgage Rates from DataMortgage.com
Learn More about Mortgage Rates
Comparing loans of different lenders is often the most difficult part of mortgage shopping if you were to look for the lowest rate. We are here to help you find the best rate with the best suitable program that fits your needs. It is important to keep in mind that mortgage packages consist of more than interest rates. They consist of a quoted rate, points and closing costs.
Points are an up-front fee paid to the lender at closing. Each point equals one percent of the loan amount. Points are charged, or paid, to lower or increase the rate on the loan. Most lenders will allow to choose amongst a variety of rate and point combinations for the same loan product. Therefore, when comparing rates of different lenders, we make sure to compare also the associated points.
Closing costs typically consist of loan related fees, title and escrow charges, government recording and transfer charges and can add thousands of dollars to the cost of your loan. When comparing lenders we also compare loan related fees to ensure that you receive the most savings on your loan (i.e. the fees which lenders charge to process, approve and make the mortgage loan), since the other fees are typically independent of the lender.
Also, when comparing loans of different lenders we thoroughly investigate and compare all loan features: maximum LTV, mortgage insurance payments (if any), credit and cash reserve requirements, qualifying ratios, etc. We pay special attention to the presence of prepayment penalties and the availability and terms of conversion options (such as rate reduction option, or option to convert an ARM to a fixed-rate mortgage).
For each loan we are comparing we find out the lock-in period, during which the interest rate and points quoted to us will be guaranteed. Lock-ins of 21, 30, 45 and 60 days are common. Some lenders may offer a lock-in for only a short period of time (12 days, for example). Usually, the longer the lock-in period, the higher the price of loan. The lock-in period should be long enough to allow for settlement before lock-in expires.
Finally, we make sure that we are comparing the interest rates on the same day. Rates change daily, if not a couple of times a day.
So, what is the best way to compare loans among different lenders?
First of all when we compare different lenders we compare loan products of the same type (e.g. 30 yr. fixed). It does not make sense to compare different types of loan programs (e.g. 30 yr fixed vs. 15 yr fixed, or fixed vs. adjustable).
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