Selecting the best mortgage lender is an important but
often overlooked step of the mortgage process. Many people
simply go to their local bank who hold their checking and/or savings accounts
and asks them for a mortgage loan. More often than not, this will not
be the best deal you can obtain. Look for low annual percentage rates (APR)
You want to find a lender who will offer you the lowest
annual percentage rate. This is the amount
of interest you will pay on your loan. Be wary of
exceptionally low APRs, however. Lenders with exceptionally
low APRs may have higher than normal closing costs.
rates may vary depending on the duration of payments.
Typically, the shorter the term, the lower the rate.
Although this rule of thumb is not infallible,
most date of recent trends show that the short-term rates
are usually lower than the long-term rates. In considering
whether to choose long term mortgage rates or short
term ones, consider where interest rates are headed.
you recently took out a mortgage, you may remember
being asked if you wanted mortgage payment protection insurance. It probably sounded
expensive and unnecessary. In some cases there are companies who like to charge you too much
for the product, but not all of them. Consider this option based on your individual situation.