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How Do I Figure Out Which Lender Is Better WIth A Mortgage Calculator?
(presented by www.refinance-refinance.net - mortgage lenders)



By Ben Afzal

Basics

With each lender your basic offer will include:

  • loan amount
  • closing costs
  • loan note rate
  • loan length in years
  • your regular monthly payment

Keep in mind that offers from different lenders are negotiable. Rates change every day, and the offer you get on a good faith estimate may not still be valid after a couple of days.

When you are comparing loan offers to see which one makes sense you may want to consider comparing loan offers of the same size.

Loans with different sizes represent different goals. In this case you compare your goals, not the lenders themselves. If one offer is a cash out refinance of $350,000 and another is a rate and term refinance to lower your monthly payment with a $300,000 loan then you have two totally different loans.

A mortgage calculator will help you figure out what you annual percentage rate is on the loan, the total payments made over time, and the total interest paid over time.

You will see that loans with shorter terms, such as 15 year loans, have a much higher monthly payment but far lower total payments over the life of the loan.

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HOME LOANS ADVERTISEMENT

You can measure loans by:

  • Lowest Monthly Payment
  • Lowest total payments over time
  • Lowest interest paid over time
  • Lowest annual percentage rate

You can decide which one of these factors is most important to you.

You may be able to pay money up front to a lender to get a lower interest rate. This may save you money in the long term. If you plan on keeping your mortgage and property for a long time this may be an option worth considering. You can compare this with an option where you don’t pay the lender up front and get a higher interest rate.

Get Mortgage Rates, 25+ Free Mortgage Calculators, Mortgage Quick Tips and Much More

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This entry was posted on Thursday, October 12th, 2006 at 2:19 am and is filed under Refinance. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.

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