| ing around is the only way you can be sure you are | | | | charges that you are required to pay. The APR is |
| getting the best mortgage rate. | | | | expressed as a yearly rate. |
| When you have several rates to compare to each | | | | The APR is important for determining the best |
| other, then you can better determine which of those | | | | mortgage rate because it is possible for charges other |
| rates is the best mortgage rate. | | | | than the interest rate to be higher. |
| Mortgages are available from several different | | | | Remember that you are not locked into the numbers |
| sources. | | | | written on a piece of paper. You have the ability to |
| Mortgage companies, mortgage brokers, savings and | | | | negotiate with a lender to receive the best mortgage |
| loans associations, and credit unions are all sources of | | | | rate. On any given day different customers receive |
| mortgages. Since there is no way of knowing which of | | | | different terms for the same loan. |
| these entities will give you the best mortgage rate, the | | | | In many cases, the amount quoted to you by the loan |
| best thing to do is get at least one quote from each of | | | | officer or broker contains unnecessary overages that |
| these. | | | | can be negotiated. Don’t wait for a loan officer |
| Keep in mind that to borrow money from a credit | | | | to offer you the best mortgage rate, instead you |
| union, you must be a member of that credit union. | | | | should ask for it. |
| To ensure you are getting the best mortgage rate, you | | | | Once you are given a quote by a lender, have the loan |
| should ask each lender for a list of current interest | | | | offer break down each of the costs that are |
| rates for mortgage. You also need to know whether | | | | associated with the loan. You may notice that some of |
| those interest rates are quoted for the day or the | | | | these costs seem out of the ordinary. Start negotiating |
| week. | | | | the best mortgage rate by asking the lender to waive |
| This will give you an indication as to the length of time | | | | or lower some of the fees associated with the loan. |
| you have to apply for the mortgage to receive the | | | | Alternatively, you can ask for the interest rate or |
| rates included in the list. It is also important that you | | | | points be reduced. During the process, make sure the |
| know whether the rates you are being shown are | | | | lender isn’t reducing one cost or fee and |
| fixed or adjustable. | | | | simultaneously increase another. |
| Fixed rates will remain the same throughout the life of | | | | When you feel you have negotiated the best |
| the loan while adjustable rates can increase or | | | | mortgage rate with a lender, you should request a |
| decrease over time. | | | | written lock-in from the lender. Included in the lock-in |
| The best mortgage rate is accompanied by the | | | | should be the rate and fees that you agreed upon. By |
| lowest annual percentage rate, or APR. The APR | | | | doing this you protect yourself from rate increases |
| includes more than just the interest rate that applies to | | | | that can occur while your loan is being processed. |
| the loan. It also includes points, broker fees, and other | | | | |