How You Can Compare Mortgage Rates To Ensure You Get The Best Deal

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There is a lot of jargon out there when it comes to mortgages and you need to understand all of this when you compare mortgage rates. It is important that you are comparing like with like otherwise you may think you have found the best deal only to face a lot of additional charges that you had not bargained for.

To be able to compare mortgage rates successfully you need to understand the different types of mortgages available and decide on which one is best for you.

Compare Mortgage Rates

Fixed Rate Mortgages

This is the most popular kind of mortgage. The main reason is that you pay the same amount every month even while the interest and the principal amount changes during the loan term. When you accept a fixed rate mortgage you lock in your interest rate which will not change. So be sure to compare mortgage rates of fixed rate home loans with other fixed rate loans.

The only downside to a fixed rate mortgage is that you will still have to pay the higher rate of interest if interest rates go down. But you have protection from interest rates going up which is better. You will need a good credit score for a fixed rate mortgage and the repayment periods are usually 10, 15 or 30 years.

Compare Mortgage Rates – Adjustable Rate Mortgages

There are a few benefits with adjustable rate mortgages such as your down payment is usually lower and the initial interest rates are normally lower which means your initial repayments are lower. There is normally a specified amount of time where the interest rate is constant and if you go for a shorter period you can get a lower rate.

The problem with adjustable rate mortgages is the impact that general interest rate rises can have on your repayments. It may get to a position where you are unable to make your repayments. There are hybrid mortgages which combine fixed rate with adjustable rates. So for example in the first 5 years you pay the fixed rate and the next 25 years the adjustable rate.

Interest Only Mortgages

These are adjustable rate mortgages where you will initially just pay back the interest on the loan. This makes the repayments lower to start with which suits some people. Once you have paid off the interest then your repayments will jump up as you start to repay the principal amount.

When you Compare Mortgage Rates don’t just use the APR

A lot of borrowers just compare the APR (Annual Percentage Rate) offered by the various lenders. Hey then go with the lender that offers the lowest APR. What is wrong with this? Well you never quite know if you are comparing like with like if you just go for an APR comparison.

Some lenders will add in selected costs when they are calculating the APR. This can include appraisal fees, credit report fees, inspection fees and so on. There are several different fees that can come with a mortgage and not everyone is going to pay all of them so this can make APR’s misleading when the lender adds all of these fees in to calculate the rate.

APR’s can be Deceptive when you Compare Mortgage Rates

Some lenders will advertise very attractive APR rates but they will not disclose that these are only available to certain people. If you do not qualify then your APR will be higher. A good example of this is where the lender does not include the cost of mortgage insurance. Sometimes these low APR rates are only available to people with perfect credit scores.

What happens if you pay your Mortgage off early?

When you are looking at APR rates or interest rates you need to know what the impact will be if you decide to pay your mortgage off early. Usually the advertised rates for mortgages are for the total loan period e.g. 30 years. If you repay the mortgage in a shorter time do the same rates apply?

In a lot of cases where a person has paid up their mortgage early the actual APR paid ends up being higher than that advertised. This could be because the mortgage was loaded with high upfront fees and you are not able to spread these if you repay the mortgage early. So if you intend to repay early tell your lender so that you can properly compare mortgage rates.

Other Variables to Consider when you Compare Mortgage Rates

There are a number of different ways for you to reduce your mortgage rates. One of these is to make a larger down payment. Not all lenders will agree to this so you need to ask them first.

There are a number of different fees associated with mortgages and you can ask the different lenders to tell you how much these are and whether they add them into their APR calculation or not. There are other ways that you can reduce some of the fees such closing fees.

Talk to Different Lenders and ask the right Questions

You have learned throughout this article that in order to compare mortgage rates properly it has to be an apples and apples scenario. If one lender is adding fees to calculate their APR and another is not then this is not a fair comparison. Talk to the various lenders to find out what is included so that you can make a good comparison.

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Pamela Reese
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Pamela Reese

Information very useful..thanks

M GWood
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M GWood

Thanks but my stuff is payed for and i am not plannimg on moving

Anibal Velazquez
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Anibal Velazquez

Nice but I have no home!

Regina Terry Megginson
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Regina Terry Megginson

I’ve worked 35 years, 70 hours a week, then had a Ruptured Brain Aneurysm and a wreck that broke my neck and back. I suddenly lost my home everything, because my husband is disabled. Please, I need a home. Thank you Jesus for Your help in this.

Terrence
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Terrence

Nice but don’t own a home or make enough money

Serena McCloud
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Serena McCloud

Thanks but I’m not a home owner

Aingel LeBass
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Aingel LeBass

Thank you for the basics. Can an amendment be made on how to get lenders to give you that apple to apple info, most try to give apple to turnip or Golden Delicious to jet ski & don’t understand why someone may need things explained more simply.

William Bessette
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William Bessette

What happens when you have servers that charge late fees from holding your checks tell there late? Or charge inspections of the property and they have never seen it!!

Kevin Koceja
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Kevin Koceja

Easy…set up an ACH withdrawl, pay by phone, pay earlier in the sequence of days prior to a due date, stay a month ahead so you have bought yourself a month in case of money problems. I would bet you are have the same issues with all your creditors. Hard copy checks are processed daily and if you read the fine print, they describe your frustration in postings, so, get ahead and stay ahead. Prepay your utilities too and before any payment is made, give a tenth to the church, then a tenth to your savings, then everybody else….if you… Read more »

Wanda
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Wanda

Im calling now plus
wandagemini67@gmail.com is my email. Dont know where you get ( wrong email from

Vanessa
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Vanessa

Okay I like it not so bad

ivan otero
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ivan otero

I need work from home, I have a lot of free time, good information, thank you.

Kevin Koceja
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Kevin Koceja

Get ahold of me. I am a counselor who can help you do something productive from home based on your interests and money requirements. Skype me at rustlers2

Ashley
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Ashley

What is it that you know about working from home? I’m interested…?

Ashley
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Ashley

This is my question for you, Kevin Koceja, just in case it didn’t go right under your comment.

Steven Saunders
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Steven Saunders

Ivan, I work from home and have a pay check every month for 7years. If interested…call me,6603460710

Justine Saenz
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Justine Saenz

Hi my name is Justine i would like to work from home. What do you do from home what kind of work.?

Valerie Neal
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Valerie Neal

Thanks wish I can own a home sounds Good

James m kelley
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James m kelley

I don’t own a home

Greg
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Greg

Same here don’t have a home . basically homeless an S.S. is my first life way to live

jeff melton
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jeff melton

this is not billy s phone number anymore.

Bonita Cokel
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Bonita Cokel

We don’t have Mortgage and we don’t want a mortgage .. outhouse is paid off … thank you

Natasha L Snyder
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Natasha L Snyder

I don’t even have a house I live with a friend and her parents …take my email address n phone number off your list.

Brenda
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Brenda

How out of thousands to decide that I needed to know about this. I don’t have a mortgage. Please remove email from call/email list. Thank you.

Kim K Anderson
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Kim K Anderson

Remove from this list!!!!!

Marcio oliveira
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Marcio oliveira

Send more info please

Sharron Perdue
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Sharron Perdue

I’m interested in HUD housing. I was a Military Dependent for 14 years. I’m disabled on Social Security. My $750 a month doesn’t do anything but make my life hell. I need 3 bedrooms and I need to buy. My sister got HUD and her husband was Air Force. How do I apply for those benefits.

Kevin Koceja
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Kevin Koceja

Are you aware that you can now work while disabled on ssi and still receive your 750. Its quite simple to form a corporation and use that as your fed id. This opens you up for a 1099 commission type of job based on your productivity. Final expense insurance, any door to door job, solar, a gopher, proof reader, care giver, computer input from home, etc. Get off your ass and do anything or you will end up your entire life worried about a lousy 750 and wonderibg why you are such a loser.

Vincent Wayne Young
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Vincent Wayne Young

That all sounds good to me I meet all the requirements I love to sign papers I want to be a home owner.

Jo Ross
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Jo Ross

Looking for a home vfor @ son and girlfriend son is disabled also girlfriend they need own home but limited income what do they qualify for been together for 10 yrs Help need to assist them with info do not know whete to start! Help!!!

Michelle
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Michelle

Not looking for any. Home’s please Stop sending me . Message’s . Not . Interested

Alvina Kay Clines
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Alvina Kay Clines

Thank you but I do not want a mortgage

Tomas Lopez
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Tomas Lopez

I no have house I rental thank you

Cherron
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Cherron

Thank you but almost done paying off our mortgage.

Jonetta Carter
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Jonetta Carter

Want to buy a home, but it seems so stressful. Credit is in the 700s. Don’t really have a down payment. Would like to purchase a 3 to 4 bedroom, baths, 2 car garage. Lower level or walk out basement. No up stairs in my late 60s and that to much up and down .fixed rate mortgages for 15 or 30 yrs peaks my interest. How can I get more information or qualify for something like this. Prefer new or a great move in ready. On a .fixed income around 1800. 00 and credit card debt less than 5000.. no… Read more »

David Robertson
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David Robertson

How do I find the best deal on a reverse mortgage? I know I qualify

Myrna
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Myrna

Hi I’m 70 yrs. Old with a 3,000 income counting my partner income. Am I too old to quafry?

Steve
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Steve

As a Realtor your info is very valuable for those wanting their own homes. Why not pay for your own home and build equity & credit rather than paying for someone else’s mortgage (aka Trust Deed & note)?

Victorria Deveney
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Victorria Deveney

Hi i like your dreams about houseing but no matter what i. Want or try to do i vant seem to even live iin a shack im a 58 yr old female on ssi on fixed income im homeless no car and dont want to luve in a shelter o dont want to put myself in that emviroment again!So IF theresi ANYWy shampe or form you can help me get into a house id be forever in your debt or if you have any ideas that can help me get off the street. Intoo. My own home i. Would appreciate… Read more »

Terri
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Terri

Thanks own my home an not looking at this time

Norma Crawford
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Norma Crawford

I’m not ready to go into all this yet . I will contact you when I’m ready to. Any emails, promotion,adds are not necessary at this time. Thank you, sincerely,Mrs Crawford

Mattie Martin
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Mattie Martin

Yes i would love a new home if u all are trying to help people get into a new home .

Averta White
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Averta White

Thanks but my husband and i are both disabled and don’t see us ever owning a home of our own were in our 60 IES and no one is breaking our door down to help us find away to own a home before it’s too late, wish there was away to leave a nice home to our granddaughter that would be payed off and she could enjoy.Lord knows that’s our dream but in this hateful time in our world, everyone has to much greed and no helping hearts not even our government . Too late for so many of us… Read more »

Cathy Valentine
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Cathy Valentine

I don’t have a mortgage I rent so please leave me alone.

John
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John

What does it take to get you to leave me alone, quit blowing up my phone with txts etc.. I’m not buying anything from you.. knock off your bullshit!!!!!!!!!!!!!!

Valarie Sanders
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Valarie Sanders

My credit score is low.

Larry
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Larry

Leave me alone

Herman Hill
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Herman Hill

With a car note and rent with. 828,00. a month there’s really nothing else for me to do, in a minute I might have to cross on the other side of the border, that way

Danny Walters
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Danny Walters

Know more emails please

James Dorsey
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James Dorsey

Not sure what you want me to do with. I am looking to make some money working from though. Any ideas?

Bobby Foster
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Bobby Foster

I thing it a good daitl.

Carla Gale
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Carla Gale

These comments are funny and sad. The spelling! who typed these kids?

Norma Lee
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Norma Lee

My concern is how much more I would owe on my house been trying to get balance down so unsure need money for improvements may sale house having a hard time keeping everything going just don’t want bigger payment and owe more on house