San Diego, CA (PRWEB) September 28, 2013
LoanLove.com is a borrower advice website that provides detailed insights into the mortgage industry in a fun and entertaining way. The team at LoanLove.com is devoted to help empower both first time and experienced homeowners with valuable resources, first-class knowledge and connections to top-rated industry professionals and has the mission of helping consumers and borrowers to obtain the latest information on mortgage lending trends, the real estate market and the U.S. financial landscape in order to help them obtain a home loan that they will love. Now, with the recent drop in home loan rates, Loan Love seeks to help borrowers find the best deals by giving advice in their new article on what to look for when comparing different rates and loan products.
The article says: “With so many lenders offering mortgage products today, it can be difficult to know which loan is truly the best deal for you. Fortunately, there are a few relatively simple ways to compare mortgage interest rates, and taking the time to explore at least one of them could mean big savings for you over the life of the loan.” These simple tips can help borrowers to save tens of thousands of dollars over the course of their loans and are especially helpful now as the lure of lower rates can tempt consumers to quickly rush into applying for new loans without thoroughly researching all their options first.
The tips outlined in the Loan Love article include comparing both the APR and the GFE of loans, as well as using mortgage calculators. Concerning APRs the article says: “Most loans will list two rates – the posted rate and the APR (Annual Percentage Rate), which is the actual rate you’ll pay when all the associated costs are considered. The APR is usually a little higher than the posted rate, and because different lenders may have different fees associated with their loan products, the APR is the rate you want to compare to see which loan actually offers the best rate over time.”
The GFE (Good Faith Estimate) is also a very useful document when comparing loans. This is a document that the lender is required to issue to the borrower within three days of the loan being approved. The GFE contains the best estimate for all fees and costs that would be incurred if the loan terms are accepted. While it is just an estimate, and the real costs could be slightly higher or lower, this document will give the borrower a pretty good idea of what they should expect so that they will be able to judge if it is the right loan for them and prepare to have cash on hand when the time comes. It is also good to know that some of the fees, such as courier fees and office costs, may be negotiable.
Loan Love also advocated the use of mortgage calculators when trying to decide which loan option is the best. These calculators can answer a number of the questions loan borrowers will likely want answers for when taking out a loan, such as how much they can afford to pay each month, or even if a different loan term would save them money. There are many different types of loan calculators and each of them can help give the borrower a clearer picture of the financial obligation they would be taking on with each loan option.
As the article says: “Comparing the costs of multiple mortgages only sounds like a complicated and time-consuming task; the truth is, any of these simple comparison methods takes only a minimal investment of your time, but the results can yield huge savings for you over the lifetime of your mortgage.”
For more information, please visit LoanLove.com for the full article.