Buyer education · Review with Dan before publication
When you compare mortgage offers, it is tempting to look at the interest rate first and stop there. A rate affects your payment, but it does not show every cost of the loan. Ask for Loan Estimates for comparable scenarios and look at these items side by side.
1. Monthly payment
Look at principal and interest, then budget for property taxes, homeowners insurance, possible mortgage insurance, and any association dues. Your comfortable payment can be lower than the maximum you qualify for.
2. Points and lender fees
A lower rate can require an upfront payment. Consider how long you expect to keep the loan before deciding whether that tradeoff makes sense.
3. APR
The annual percentage rate reflects the interest rate plus certain loan costs. It is useful when comparing offers, though it does not replace a line-by-line review of the Loan Estimate.
4. Cash to close
Compare down payment, closing costs, prepaid taxes and insurance, credits, and any other amounts due at closing.
5. Your timeline
Ask how long it would take to recover an upfront cost through any monthly savings. If you may move or refinance, that timeline matters.
He can help you understand what is different between offers and which questions to ask before you decide.
General education only; not a rate quote or a guarantee of financing. Sources: CFPB Loan Estimate comparison and CFPB interest rate and APR guide.