QHow Can I Compare Home Mortgage Rates Quotes I Received From My Mortgage Broker And An Online Lender I Found?
AThe easiest way to compare home mortgage rates between lenders is by looking at the APR (annual percentage rate). The government requires that all lenders state the APR. This number takes into account the total costs of the loan as well as the interest rate and converts it to a percentage. The lender with the lowest APR is generally the best deal for you. When you do compare APRs, be sure you compare based on the same terms. You cannot compare the APR of a 15-year loan to a 30-year loan. But also be sure to compare the difference between the interest rate and the APR. A larger difference means more fees. Finally, when comparing home mortgage rates, it is helpful to know how long you plan to stay in the house. If you only plan to be there for a short time, it is almost always better to go for the loan with a little higher rate but lower closing costs. You can easily figure this out by calculating the breakeven point for each loan. This is another simple way to identify the best loan for your situation.