It is Important to Do Mortgage Comparison!

Wednesday, May 4 @ 09:05 AM
Charles Mouse - financial expert

It is important to do mortgage comparison. With the current rat race in the industry and in our society, we barely find time to compare mortgage rates that we often settled with the first offer that we have rather than considering several options to choose from. So please read on and you may discover that you will find it is necessary to compare mortgage rates.

Hundreds of companies are marketing their deals and are offering financial assistance as well. They are most often visible as kiosks in the super malls. There are varieties of mortgage offers from different companies so it is not difficult to find one that will suit your needs and your budget as well. The main objective of comparing mortgage rates is that you will be able to discover a way better deal before you settle in with one.

You can also get online and do the mortgage comparison there. This will give you the chance to visit the website of the company and check out the discount they offer as well. Since online websites now act as online agents, you can readily view their policies, and the big discounts they have on mortgage rates. Most often, you can have as much as 20% discount if you keep on looking. Online, you can also check the company’s standing in terms of mortgage statistics.

Another option for doing the comparison is to get quotes from mortgage providers. You can visit five mortgage companies for their quotes and compare the rates.  However, the information highway (internet) still offer the best and the quickest way to gather information and compare the rates for you. There are also tools available that can do the comparison for you and the result will be sent through your email.

All fees are considered when making the comparison.  There may be two offers of the same rate but the applicable fees like service fee, application fee, monthly fee, etc… may vary. One may offer more than the other.  Here is a comprehensive example of two home loans advertisement.

In the examples, both loans are at $100,000 home loan over the spread of 25 years with 7% interest rate. One loan have no fees the other has a $700 application fee and $10 monthly fee.

Example 1 ha no other fees on a 7% rate, the comparison rate will remain at 7%, while example 2 has also a 7% interest rate with application fee and monthly fee, the comparison rate on this would be 7.18% over a loan term of 25 years.

The result of the comparison is the difference in the actual cost, taking into account the fees with the same interest rate; the example 2 home loan is a little bit more expensive.

To save money in the end, it is very important to compare the actual cost of a mortgage. The difference however small at first, when accumulated over the 25 years, will actually be a lot of money saved. At present, there are differences between each lending institution as well as the banks. These rates and applicable fees are not regulated yet. It is the best advised that you consult your mortgage broker regarding the current mortgage trends and rates.

For any comments and suggestions, add them at the end of this post, or for more personal mortgage information please click on the link below.

The table below present the most important features of each mortgage declared. You will see and check out the top market deal, and then you can choose and decide the best one for you.

Using the online mortgage comparison sites to do this job for you will save you a lot of money.  You don’t need a broker or the lender to access the most comprehensive competitive bargain at a glance. It is really important to do your mortgage comparison. The end result will save you a lot of money.

Comments are closed.