How to Compare Mortgage Loans
Taking out a mortgage is one of the largest financial investments most people make during their lifetimes. By shopping around and comparing mortgage loans, you can save thousands of dollars.
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Rates
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The interest rate determines how much you will pay in interest over the term of the mortgage. Some mortgages have a fixed rate. Others have a rate that changes as the market rate rises and falls. Different mortgage lenders may charge different rates.
Time Frame
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Different mortgages have different repayment periods, also known as terms, which typically range from 15 to 30 years. The longer the term, the lower the monthly payment but the more interest you will pay over the life of the mortgage.
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Fees
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You should compare the closing costs of the mortgages as well as the interest rates. Closing costs can include broker fees, appraisal fees and discount points. Discount points lower the interest rate, but increase the upfront costs.
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