How should I compare rates offered by different lenders?
When comparing lenders, it is important to compare total costs for the same interest rate and lock period. Because rates change daily, it is important that you compare all lenders you are considering on the same day. It is also important that you ask about certain features of the loan, such as prepayment penalties and whether or not you will be required to have an impound account for your taxes and insurance. What is a rate lock? A rate lock is a lender’s guarantee on your loan’s interest rate and point payment. You can only lock your rate once you have identified a property. Until you request a rate lock, the rate and point are considered to be “floating”, in other words are subject to change due to market fluctuations. back to top What is amortization? Amortization means paying down your principal. You repay your loan in monthly installments. If you have a fixed mortgage, your payments will always be the same amount. Part of the payment goes toward the payment of the interest, and pa
When comparing lenders, it is important to compare total costs for the same interest rate and lock period. Because rates change daily, it is important that you compare all lenders you are considering on the same day. It is also important that you ask about certain features of the loan, such as prepayment penalties and whether or not you will be required to have an impound account for your taxes and insurance.
