San Diego, CA (PRWEB) June 17, 2013
LoanLove.com is a trusted destination for current mortgage news and expert loan advice. 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. The website offers a number of great informational articles and online tools and resources that can help borrowers to find the best California home loans available. A new guide posted on the website suggests simple ways that borrowers can compare different loans in order to find the best mortgage rates California has to offer.
The Loan Love article suggests three simple ways that those looking for the best interest rates in California can compare loans in order to find the most advantageous loan terms for their specific situation. 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.” The article then goes on to explain that three of the simplest and most accurate ways to compare loans is to look at the Annual Percentage Rate (APR) as well as the Good Faith Estimate (GFE) if the loan is already approved, and by using mortgage calculators.
By knowing what to look for when comparing loans, California homeowners and buyers will be able to find the best home loan rates that will enable them to save a lot of time and money. The first thing that the article suggest look at, the APR, is the second of the two rates that will always be posted with a loan. The first rate (the posted rate) is almost always lower than the APR, but the APR gives a better idea of how much the homeowner will really need to pay, since even loans with the same posted rate will have different associated fees and thus the APR is what the homeowner will want to compare to see which loan actually offers the best rate over time.
If the borrower has been approved for the loan they will also have the benefit of looking at the GFE. This is a document that lenders are required to provide the borrower within three days of the loan being approved. The Loan Love article says: “This seemingly simple document is packed with important information that can help you understand the true costs of the loan. A GFE contains an itemized rundown of all the fees and costs you can expect to incur if you accept the loan agreement. It’s important to note that while a GFE is not written in stone – some items may be a little more or less costly when it comes time to close – lenders are bound by federal law to ensure the items and costs they quote are given in “good faith” – that is, this is a best estimate of related costs.”
And finally, the article suggests that borrowers take advantage of loan calculators when comparing mortgages. These handy tool use basic information to quickly determine the estimated monthly payment and provide an amortization table that shows how the loan balance will change during the life of the loan. Many loan calculators also allow the borrower to include property taxes and home insurance in the cost estimates to let the borrower get a feel for what their real monthly obligation would be.
These three suggestions can help home loan borrowers to find the best possible rates for their homes. The article says: “Once you know all the costs involved, you can perform a much more accurate comparison among different loans.”
For more information on how to find the best rates for home loans, visit LoanLove.com for the full mortgage comparison guide.