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Buying a home is not as simple as qualifying for a home purchase loan and then making the monthly payments. Homebuyers need to understand how mortgage rates vary, then compare information from lenders before taking out a home loan.
* When shopping for your home loan, ask each lender for a list of current mortgage rates.
* Find out if the mortgage rates provided are the lowest for the day or week.
* Learn if the rate is fixed or adjustable, meaning it can vary during the course of the home loan. If mortgage rates on adjustable loans rise, so will your monthly payment.
* If you opt for an adjustable rate, find out how much it may vary. Ask if your home loan payment can go down if rates go down.
* Check the loan's annual percentage rate, known as the APR. The APR figures in the interest rate as well as points, broker fees and other charges you may have to pay at a yearly rate.