Home Buying in Boston>Question Details

Scott, Home Seller in Boston, MA

What is the best way to compare loans terms between lenders?

Asked by Scott, Boston, MA Wed May 15, 2013

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Answers

6
Please consult a few mortgage brokers and banks for the best deal they can give you.
0 votes Thank Flag Link Thu May 16, 2013
I am a Real Estate Attorney in Boston and I agree with Moy Lopez below. Shop the APR to get the total cost, but make sure you are comparing the APR of loans with identical terms.
0 votes Thank Flag Link Thu May 16, 2013
The Annual Percentage Rate or APR attempts to inform you what the total cost of the loan will be over the life of the loan. The cost includes the total of the interest paid over the life of the loan. It also includes the closing fees and if applicable, the cost of the Private Mortgage Insurance premiums.
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So if you are comparing a 15 year mortgage versus a 30 year mortgage, the 15 year term most likely will have a lower A.P.R. because of a lower note interest rate and a shorter 15 year term inspite of the higher monthly payment.

Using the the APR to gage Adjustable Rate Mortgages does not work because it uses faulty projection of what the future rates will be.

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0 votes Thank Flag Link Thu May 16, 2013
Lenders are required by law to give a GFE, (Good Faith Estimate):
This shows the % rate as well as the APR, and all the charges and fees.
Every GFE should be similar, for comparison sake.
0 votes Thank Flag Link Wed May 15, 2013
There are many factors involved. For example. Type of loan, loan program, rate, points, fees, closing costs. Best thing to Sonia go online and do some research then contact at least three lenders and do a comparison.
0 votes Thank Flag Link Wed May 15, 2013
Rate vs total closing costs
0 votes Thank Flag Link Wed May 15, 2013
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