Compare Current Interest Rates – New Loan Love Guide Gives Tips On What Borrowers Should Consider When Deciding Which Loan Option Is Best
San Diego, CA (PRWEB) July 28, 2013 -- LoanLove.com has a mission to help consumers and borrowers alike in obtaining the latest information on mortgage lending trends, the real-estate market and the U.S. financial landscape for the purpose of helping them obtain a home loan they love. 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. To fulfill this goal LoanLove.com is continually updating their website with new articles and guides. LoanLove.com continues to help homeowners to understand what they should look for when they compare current interest rates with their new mortgage interest rates comparison guide.
The Loan Love article states: “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 first item that mortgage borrowers are advised to look at when comparing different loan rates is the APR, or Annual Percentage Rate. This is the actual rate the borrower will pay when all associated costs are covered. The posted rate tends to be a bit lower than the APR, and because different lenders often have different fees associated with their loan products, the APR is the rate that borrowers will need to look at to determine which loan actually provides the best long term rate.
The second tip for home buyers, or home owners considering a refinance, is to use a mortgage calculator. There are many types of mortgage calculators (some of which can be found on the Loan Love website) and all of these take the borrower’s basic information to quickly determine the monthly payment that would be expected and provide an amortization table to the borrower. Many loan calculators also give allowance for including property taxes and home insurance in the cost estimate so that the borrower can get a better feel for what their actual financial obligation will be like. Mortgage calculators are also a great way to determine if the borrower can afford a shorter term and the higher monthly payments that go along with it. In short, they are a great way to test different scenarios to find out which one is best for the home buyer’s or owner’s situation.
The final tip for finding the best loan scenario is to compare the GFE of the loan. The GFE (Good Faith Estimate) is a document that the lender must provide to the potential borrower within three days of the loan being approved. The document lists an estimate of all costs involved, and since many lenders have different fees involved in processing and closing loans, the final costs can vary quite a bit. It is important to keep in mind, however, that the GFE is only the lender’s best estimate of costs; the final cost may be slightly higher or lower than the amount quoted in this document. Also, while most items listed on a GFE must be paid, some items may be negotiable – especially courier fees and office costs, like copying and faxing so it is worth it to look over this document as soon as possible.
The Loan Love article ends with this advice: “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.
Kevin Blue, Loan Love, http://www.LoanLove.com, 949-292-8401, [email protected]
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