5 Effective Tips for Comparing Mortgage Rates
When making a significant financial move like buying a home or taking out a mortgage, the primary concerns for most buyers are the interest rate and monthly payment amount.
Contact Multiple Lenders
Contact more than one mortgage lender. This will give you access to multiple loans with varying terms. Be organized, write everything down, and compare each lender’s loan offer carefully.
Give yourself at least 4-6 months to find a lender and a home financing deal. Many lenders offer free quotes to borrowers.
There are a number of mortgage loans, including fixed rate, VA, adjustable rate (ARM) loans, and so on. However, each loan has its own eligibility criteria. Compare the eligibility requirements, including the expected down payment amount, minimum credit score, and whether you need to be considered a first-time home buyer to qualify.
Review the Terms
Compare the loan terms to see what meets your personal needs and goals. Fixed rate loans, for example, are available for 15 to 30 years and come with fixed monthly payments. If you plan to stay in a home for more than 10 years, then a fixed rate may be a good option. On the other hand, an adjustable rate (ARM) is a great choice for those planning to live in a home for less than 5 years due to its low short-term interest rate.*
Calculate the Cost of the Loan
The cost of each loan includes the principal amount, lifetime interest, and down payment. Loans also come with additional expenses including closing costs, lender origination fees, and property transfer taxes. Figure out which loan will cost the least over the long term.
Ask for a Discount
Many mortgage lenders provide discount points to borrowers with an excellent credit score or will offer discount points in exchange for an up-front payment amount. Speak with your lender about whether discount points are available, and calculate whether they will benefit you financially.
Finding a mortgage loan and lender that’s a good fit can be difficult. In order to simplify the process, it’s helpful to consult a professional mortgage brokerage firm. With over 15 years of experience, TILA Mortgage assists home buyers in Washington State obtain an excellent mortgage loan for their circumstance. From ARMs to fixed rates to VA loans, we deal with multiple home loan products.
Contact us today to see which loan might be right for you! Your initial consultation is always free.