HOW DOES THE INTEREST RATE FACTOR IN SECURING A MORTGAG LOAN?
A lower rate allows you to borrow more money than a high rate with the same monthly payment. Interest rates can fluctuate as you shop for a loan, so ask the lender if the offer if they offer a rate :lock-in” which guarantees a specific interest rate for a certain period of time. Remember that a lender must disclose the Annual Percentage Rate (APR) of a loan to you. The APR shows the cost of a mortgage loan by expressing it in terms of yearly interest rate. It is generally higher than he interest rate because it also includes the cost or points, mortgage and other fees included in the loan.
