When it comes to shopping for a mortgage, there are many things to consider.
First, you want to be sure that you are examining mortgage rates for your specific location, as mortgage rates may differ from state to state.
If, for example, you reside in the city of Baltimore, you would head over to your computer and search for something like Baltimore Mortgage Rates.
By doing this, you are ensuring that you are looking at rates that are accurate within your particular city and state.
Second, you want to ensure you are comparing apples to apples, so when asking about mortgage rates, always be sure to request an Annual Percentage Rate, or APR, as well.
Your APR is simply your quoted mortgage rate plus any additional costs associated with the loan, expressed as a percentage. This is really the only way to ensure you are getting an accurate interest rate quote.
For example, if you were quoted a rate of 5.000%, but the APR is 5.625%, you can be sure that the other costs associated with that loan are very high, and you might even be paying points.
If, however, the quoted rate was 5.000% and the APR were just 5.125%, this would indicate that the fees associated with that particular loan are very low.
Usually, the Annual Percentage Rate can be found on your Truth-in-Lending agreement, or TIL, so make sure you obtain this disclosure before locking in your interest rate. This will ensure that you receive your APR in a timely manner.
Following these simple steps can help to ensure that your mortgage shopping process is quick and easy.