What to Look at When You Compare Mortgages
Although today it's relatively easy to get mortgage offers from a wide variety of lenders in just a matter of minutes, through the Web, if you're one of the first time buyers you may find it hard to compare mortgages. Knowing the key aspects of a mortgage offer makes the comparison easier, and leads to a better choice in the end. The interest rate is not the only aspect you should look at; closing costs or fees, and points are also important
Represent the fees you may choose to pay at closing to get a better interest rate on the mortgage. Each point represents 1% of the total value of the mortgage. Lenders usually offer a variety of point schemes for a single loan, so you tend to have many options here. Points are important because they can help you save money in the long run. So, when you compare mortgages in order to find the best rate mortgages, don't forget to take into account the available point schemes of the deal.
Closing Costs or Extra Fees
These include escrow charges, title charges, loan-specific fees, as well as charges made by the government. In many cases, closing costs can easily amount to a few thousand pounds. When you compare mortgage lenders you should pay special attention to the fees that depend entirely on the lender, which are normally those charged for the processing and approval of the loan. Many other fees are imposed on lenders by the government, and there's no way to avoid these. Also, keep in mind that some lenders ask for higher fees when offering a low interest mortgage.