Education and Emphasis Points for Comparing Mortgage Rates

When you’re considering a home loan of any kind, the mortgage rates you can qualify for are naturally going to be one of your single most important factors. The interest rate plays a big role in the total amount you’ll pay over the life of a given mortgage, often creating major swings based on just a few percentage points.

At Primary Residential Mortgage in Shoreline, we can help you with every important area of mortgage rates, plus help you apply online. Here are some important tips we offer on comparing various rates – it’s about more than just which number is lower, after all.

Educate Yourself

For starters, you want to decide early on what your goals are for homeownership – this can help you decide whether you want a fixed or adjustable interest rate. Most first-time buyers use a fixed rate, which stays the same throughout your loan regardless of market conditions, while some others use adjustable rates, which can increase gradually over the course of the loan and provide more variance.

From here, you want to familiarize yourself with as much of this world as possible. Learn about basic loan terminology and what affects interest rates, and ask trusted friends or family about their experiences with various loans.

APR and Points

You want as complete a picture as possible when it comes to your mortgage rates, and the best way to get it is using APR. Short for Annual Percentage Rate, APR describes not only the yearly interest rate you’re paying, but also mortgage insurance, loan fees and any other fees included in your payments. This is the truest determination of what you’ll actually pay.

Be Wary

If you ever see a mortgage rate that seems too good to be true, you know what? It probably is. This kind of rate will often come with major hidden costs, especially if it’s from a lender with no major reputation on their market. Be sure to check the Better Business Bureau and NMLS to make sure the lender you’re considering is licensed and reputable. Don’t become too focused on titles or ultimately irrelevant factors – focus on whether the lender is providing you with the transparency and practicality you need. Any red flags that come up in terms of these areas should be followed up on immediately.

For more on mortgage rates, or to learn about any of our other mortgage services or apply today, speak to the experts at Primary Residential Mortgage in Shoreline today.

*PRMI NMLS 3094. PRMI is an Equal Housing Lender. Some products and services may not be available in all states. Credit and collateral are subject to approval. Terms and conditions apply. Programs, rates, terms, and conditions are subject to change and are subject to borrower(s) qualification. This is not a commitment to lend. Florida Office of Financial Regulation MLD646. Opinions expressed are solely my own and do not express the views of my employer.