Have any questions? Call me today,
(714) 349-8890
  • banenr

    Bill consolidation, Remodel, Vacation?

  • banenr

    See what your options are!

  • banenr

    Save money with expert advice!

Mortgage Comparison: Major Factors to Consider

You can select from a huge range of home loans available from various lenders. The best deal for you is out there. You simply need to find it. The most effective strategy for this is mortgage comparison. You can readily obtain quotes free of charge. The question is how to make an effective comparison. For best results, it should be based on the following important criteria.

Interest Rate

The interest rate is the primary cost of borrowing. That is why it is a major factor for mortgage comparison. You need to check the type of interest which will be charged. Traditionally, home loans have a floating interest rate. However, you can have it fixed for a certain period of time. You can also secure a discounted rate during a predetermined initial period. In such cases, you will have to compare both the initial discounted or fixed rate and the rate which will be charged afterwards.

Annual Percentage Rate

APR is an extremely important factor because it reflects the total cost of borrowing. It is calculated based on the interest and fees which you have to pay as a borrower. A lower APR results in a cheaper loan and vice versa. If a mortgage has a low interest rate but high fees, it may be more expensive than one with moderate rate and fees. That is why you should be extra careful when making the comparison.

Loan-to-Value Ratio

Lenders rarely provide 100% finance for the purchase of the property. You will have to pay a deposit while the lender will cover the remainder of the house value. The loan-to-value ratio (LTV) shows the amount which the lender can pay in percentage form. The higher the ratio is the smaller the deposit has to be. This will give you the opportunity to buy a home with less savings, but the loan amount will be larger and this will make the loan more expensive.

Repayment Term

You need to compare the different mortgage repayment terms because they will have different impact on your finances. A longer term will result in smaller regular payments and in higher total cost and vice versa. You should pick the term based on your personal plans for the future.

Repayment Structure

You can select from a variety of repayment structures. You can go for table, revolving credit or interest-only repayment structure. You should make a choice based on your preferred level of certainty and flexibility and on your individual plan for repaying the loan.

Compare different mortgage deals carefully and use expert assistance if necessary so that you can make the best choice.

For more help with your mortgage, feel free to contact us!


Your Comments

Name (required)

Email (will not be published) (required)


©2014 Diane Luongo Gazich All rights reserved.