Comparison shopping is a great American tradition. Most people wouldn’t dream of buying a refrigerator or a smartphone without first comparing features and researching costs. And yet, many home buyers just accept the first mortgage quote they receive from their bank or other lender.
Some buyers may not realize that, with a little effort, they can save thousands of dollars up front and over the life of the loan by comparing quotes from several sources.
TheMortgageReports.com says, “There is no limit to the number of mortgage quotes you can get. A general rule of thumb is to get at least four quotes, in addition to a quote from your own bank or broker.”
Keep in mind that interest rates are constantly changing and mortgage quotes expire quickly. The key to effectively comparing quotes is to set aside a block of time to request and evaluate multiple options at once.
One caveat: Just be sure that you aren’t comparing “apples to oranges” when evaluating the best mortgage quote for your loan. Some lenders may offer you a very low rate, but you may discover the quote includes discount points. “Discount points are actually prepaid interest on the mortgage loan,” says BankRate.com. “The more points you pay, the lower the interest rate on the loan.”
In addition to comparing interest rates on the quotes you receive, you’ll also want to compare closing costs and other fees.
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