Do The Right Math Compare Mortgage Quotes Accurately

Do The Right Math Compare Mortgage Quotes Accurately



Do the​ Right Math: Compare Mortgage Quotes Accurately
It doesn't matter how many times you​ trawl the​ Internet for information .​
When looking for tips on​ taking out a​ mortgage,​ you​ will always be given this advice: compare mortgage quotes .​
This is​ the​ first and most important rule for would-be homeowners .​
Always compare mortgage quotes .​
Unless you​ do,​ you​ cannot distinguish the​ good offer from the​ bad .​
Only when you​ compare mortgage quotes can you​ assure yourself that you​ are getting the​ best possible deal there is​ .​
Comparing mortgage quotes,​ however,​ is​ not as​ simple as​ pitting one figure against another .​
You have to​ factor other things,​ too .​
At the​ same time,​ you​ need to​ have at​ least a​ working knowledge of​ the​ mortgage terms and realities you​ will be dealing with .​
Tips for Comparing Mortgage Quotes
Below are some tips to​ ensure that your comparison yields as​ precise a​ result as​ possible:
1 .​
If you​ want to​ make comparisons using very accurate data,​ get quotes from different lenders or​ brokers on​ the​ same day .​
Mortgage quotes change daily .​
At times,​ they even change several times in​ one day.
2 .​
When you​ compare terms,​ compare mortgage quotes for similar lock periods .​
a​ lock period is​ the​ specific span of​ time that guarantees implementation of​ a​ certain rate .​
As a​ rule of​ thumb,​ longer lock periods have higher rates .​
Lock periods are generally offered in​ increments,​ like 15,​ 30,​ or​ 60 days.
3 .​
Compare mortgage quotes that have the​ same points,​ such as​ zero or​ one .​
In the​ mortgage business,​ a​ point is​ the​ term given to​ a​ rate .​
Three points,​ for example,​ means three percent .​
Mortgage quotes follow a​ tiered pricing .​
This gives you​ the​ opportunity to​ buy the​ rate and bring it​ up or​ down .​
How? It's very simple .​
To make the​ points decrease,​ increase the​ mortgage rate .​
To make the​ points increase,​ reduce the​ rate .​
4 .​
In the​ quote you​ ask for,​ ask that the​ quote loan be separated from associates fees .​
Property taxes,​ home insurance,​ and pre-paid interest are not lender's fees .​
What falls under lender's fees are the​ following: standard title,​ appraisal fees,​ and processing or​ underwriting charges.
5 .​
Compare mortgage quotes of​ the​ same type .​
There are many types of​ mortgages .​
There is​ a​ buy-to-let mortgage .​
Then,​ there are also self-build mortgage,​ right-to-buy mortgage,​ and reverse mortgage .​
The terms of​ your mortgage could change along with the​ type .​
Things to​ Watch Out For When Comparing Mortgage Quotes
1 .​
Locks of​ 45 days or​ more have a​ higher rate.
2 .​
If lenders are asking you​ to​ pay points on​ the​ loan,​ be sure to​ have them quote the​ points in​ dollars .​
This is​ for your protection .​
Unscrupulous lenders might later on​ change the​ base amount to​ collect more from you​ .​
This is​ because points are computed as​ percentages .​
The bigger the​ base,​ the​ higher the​ commission,​ for example.
3 .​
Beware of​ lenders that are not upfront about the​ loan process to​ you​ .​
a​ trustworthy mortgage company is​ always willing to​ answer your questions and explain points of​ misunderstanding .​
Comparison is​ good because it​ highlights the​ defects of​ one and showcases the​ suitability of​ another .​
All the​ websites that dispense mortgage tips will always tell you​ to​ compare mortgage quotes.




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