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SHOPPING FOR THE BEST MORTGAGE RATES - Page 2

© Whitni Smith

If you're shopping on-line, BEWARE!! The one thing that I've noticed and have heard lenders talking about is the date of their quotes which they disclose on-line. Some lenders like to publish a very good rate and APR and then leave the quote out there for days (sometimes weeks). In the meantime, interest rates may go up and they don't update their quote, which makes them look like they have these really great rates. Make sure that the rates and APR's that you are looking at are current.

If you're shopping for a mortgage with interest rates or payments that can increase or decrease during the loan, there a few more questions that you need to remember to ask when comparing rates. Ask the following: > Initial interest rate > How much the interest rate can increase or decrease (cap) with each change and then also over the life of the loan > How often can the interest rate and/or payments change > What index is used when re-pricing at each change > How much is added to the index to determine the new rate each time a change occurs (margin) > Is there any negative amortization > Are there any balloon payments

You are now armed and considered dangerous (an informed consumer). The mortgage industry is very competitive and most fees are negotiable. So, go compare and have fun! You'll feel much more confident about your choice in lenders if you take the time to do this.

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