Comparing Mortgage Quotes...Apples to Apples

When you compare mortgage interest rate quotes make certain you are comparing apples to apples. You can make comparison shopping much easier if you stipulate the terms upon which the quote will be based.

Specify all the program parameters including the property value, the mortgage amount, the mortgage term, the type of interest rate (fixed-rate or adjustable rate), number of points, prepayment penalty provisions, the number of days the quoted interest rate will be locked and whether you want an escrow account waiver. Tell the lender that in addition to a mortgage interest rate quote, you want a written “Good Faith Estimate” that itemizes all of the upfront costs and required future monthly payments.

Also request the lender to provide the “Annual Percentage Rate” which takes into account not only the quoted mortgage interest rate, but also points, mortgage broker fees and certain other fees you have to pay.

If you would like advice on what to request or need help comparing mortgage quotes, call The Vault. We will compare any written quote you have received to The Vault’s offer. If you can get a better deal elsewhere, we’ll say so. If not, we will explain why our deal is better.

For additional information on shopping for a loan, get a copy of “Buying Your Home,” an excellent publication published by the U.S. Department of Housing and Urban Development. You can obtain a copy by calling any loan officer at The Vault or over the internet  at:  

http://www.hud.gov/offices/hsg/sfh/res/stcosts.pdf