How to Compare Mortgage Quotes

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choosing_house.jpgComparing mortgage loans from different lenders can be one of the most difficult parts of mortgage shopping. Factors you’ll need to compare include rates, points, closing costs, and loan features.


How To Compare Mortgage Quotes


Rate changes


First, make sure you’re comparing interest rates from lenders on the same day and if possible, the same time. Rates change daily, if not several times a day. You should also be sure you’re comparing loan programs of the same type. In other words, don’t compare a 30-year fixed mortgage to a 15-year adjustable mortgage.



Read: How to Calculate Your Mortgage Loan Estimate


You’ll also want to compare the loan’s annual percentage rate (APR). The APR number measures the long-term cost of a loan from the date of closing to the date of payoff. It takes into account the loan’s interest rate, points, broker fees, and other charges you may be required to pay.  APR is expressed in a yearly percentage.



Consider Points


Points are a fee you pay to the lender up-front at closing. Each point represents one percent of the loan amount. Points can be charged or paid to lower or increase the rate on the loan. Lenders will usually let you choose a variety of rate and point combinations.



Watch the Closing Costs


computer-ee33b6082f.jpgClosing costs typically consist of title, escrow, and transfer charges, as well as other fees related to the loan. When comparing quotes, you should consider the fees lenders charge to process, approve, and make the mortgage loan since the other fees are typically independent of the lender.

When shopping for the mortgage loan that bests suits your needs, have each lender write down the costs associated with the loan. Once you’re satisfied with the terms you negotiated, you can obtain a written lock-in from the lender. A lock-in includes the rate you agreed upon, the period the lock-in lasts, and the number of points you’ll pay.

Online tools are other useful resources to provide you with free rate quotes and connect you with vital information you’ll need to ultimately select the mortgage that’s best for you. You can also find interest rates and points in your local newspaper.  


Read: Closing Costs: How Much Is Too Much? [Infographic]



Ready to start comparing quotes and understanding your mortgage options? Let us help you learn more. 



With more than 21 years in the industry, we’re a leading fintech mortgage lender saving current and potential homeowners money and time through transparent rates, zero junk lender fees*, and technology that automates over five million tasks each month. We’ve served over 100,000 borrowers, boast a 98% customer satisfaction rating and 4.9 stars on thousands of online reviews, and provide a “mortgages without migraines” experience. (*Note: Wyndham does not charge junk fees, application fees, processing fees, or underwriting fees. There can be fees charged directly by Third Parties for services such as, but not limited to, title, settlement, appraisal, taxes, and insurance.)

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