How to Get an Accurate Mortgage Rate Quote
When it comes to shopping for a mortgage, there are several factors to consider.
First, you must be certain that you are examining mortgage rates for your specific state, as mortgage rates may differ from state to state.
If, like me, you happen to live in Baltimore, you could simply search Google for Baltimore MD Mortgage Rates.
By doing this, you are ensuring that you are obtaining rates that are correct for your particular city and state.
Second, you need to ensure you are comparing apples to apples, so when asking about mortgage rates, always be sure to request an Annual Percentage Rate, or APR, as well.
Your Annual Percentage Rate is simply your quoted interest rate plus any additional costs associated with the loan, expressed as a percentage. This is truly the only way to ensure you are getting an accurate mortgage rate quote.
For example, if you were quoted a rate of 5.000%, but the APR is 5.625%, you will know that the other costs associated with that loan are very high, and you might even be paying points.
If, on the other hand, the quoted rate was 5.000% and the APR were just 5.125%, this would reflect the fact that the costs associated with that particular loan are very low.
Usually, your APR is found on your Truth-in-Lending agreement, or TIL, so be sure to request this disclosure prior to you lock in your interest rate. This will ensure that you receive the APR in a timely fashion.
Following these simple guidelines can help to ensure that your mortgage shopping process is quick and easy.
This entry was posted on Wednesday, March 31st, 2010 at 3:31 am and is filed under General. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.