Mortgages - Three Things To Look For In A Mortgage Quote

By C.L. Haehl

When you’re shopping for a mortgage, it’s a great idea to get three or more mortgage quotes. Getting a mortgage quote is easy to do. Lenders will try to make it sound like a big deal, so you’ll be more likely to get you to accept their quote. But when you get several quotes, line them up side by side and compare them to make an educated decision.

Interest Rate
There are two types of interest rates. A variable interest rate is an interest rate that will change over the course of your loan based on what the current interest rates are. A variable rate loan is a good idea if interest rates are particularly high at the time you want to close. A fixed interest rate is an interest rate that stays exactly the same throughout the course of your loan as it is today. It’s a good idea to get a fixed interest rate if interest rates are relatively low at the time of your closing.

Closing Costs and Fees
Just because interest rates are low on one quote and higher on another doesn’t mean the quote with the lower rates is the better deal. Many times lenders will lure you in with low interest rates but then charge you higher fees and closing costs.

Find out how much cash you’ll be required to pay at the time you’ll be closing on the loans. Check to see how much the insurance and taxes will be on your loan and whether your lender has figured that into the total amount or whether these fees will be added to their total. And check out the origination fee on your loan. This is the fee your lender will earn to close your loan.

Terms
Finally, look at the terms of your loan. How long will your payments go on for? Are there any balloon payments required? Read your quotes carefully to make sure you are truly comparing your loan quotes accurately.

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10 Things To Know Before You Accept a Mortgage Quote- Read this article to learn 10 things you should know before you accept a mortgage quote.

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