Look at loan programs and rates offered by several different lenders. If you find a
lender that offers a 6.25 percent rate when all the others charge more, you'll save in
interest over the life of a 30-year.
Comparison-shop on line to cut your search time drastically. Work with a mortgage
broker who arranges loans from many different institutions. Choosing a mortgage can
take weeks if you contact several lenders yourself.

Be sure to compare loans thoroughly:

Compare at least 6 lenders or mortgage brokers. One of them is bound to offer the
loan that's best for you.

It's not all about interest rates. Getting a low rate is important, but you won't
benefit from it if you have to pay too many up-front points and other fees.

Understand how points and rates work. A point is prepaid interest, and each point
you pay equals one percent of your loan amount. If you get a $100,000 loan and pay
3 points, that's $3,000 in points. The more points you pay, the lower the rate you'll
get.

How long will you keep the loan. If you're going to move in a few years, consider an
adjustable-rate mortgage since you may be able to sell the house before the rate
gets too high. If you plan to stay longer, a fixed-rate mortgage may be an attractive
option because your rate stays fixed for the term of the loan.

Copyright 2008 * Century 21 - Diablo Valley Realty * All Rights Reserved

Some properties which appear for sale on this web site may subsequently have sold or may no longer be available.
All information provided is deemed reliable but is not guaranteed and should be independently verified.