Mortgage Loan Rate & Other Features
Compare the mortgage loan rate is the most important part of taking a home mortgage loan. keep in mind that all rates offer by multiple lenders are "vary". Although their rate might be same, however there must be some differences among the closing costs, points and requirements.
Many lenders will let borrower to choose variety rates and points combination for the same loan products. make sure you are comparing their rates, term and associated points.
The closing cost is generally depend on lender, some of the lenders offer a lower rate associated with extremely high closing costs. They make a big money from borrower at initial stage. Be sure you have compared their closing cost and satisfied with it.
Beside that, you should investigate thoroughly in all loan features such maximum LTV, insurances (if any), qualifying ratio, credit and cash reverse requirements and etc. Take more caution about the prepayment penalties, term of conversion option (from ARM change to fixed rate and rate reduction).
Generally there will be a "lock-in-period" of quote by lender, from 30 days to 60 days or a short period (7-15 days). The longer of the lock-in-period the higher of the loan rate. Ensure you have sufficient time allow for settlement before the lock-in-period expires.
Another factor to determine interest rate is the credit score of borrower. The truth is best rate always reserve for those with good and excellent credit. If your credit score is less than perfect, you may take few months to improve it before deal with lenders. A slightly varies of the rate will cause a big different, after all the interest rate is counting years.
For more information about the home mortgage loan, please check out
Home Loan Guide instead of Mortgage Loan Rate & Other Features
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