What Is a Mortgage Rate Comparison?

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What is a mortgage rate comparison?

What Is a Mortgage Rate Comparison?

When you decide to buy a home and finance the purchase through a mortgage lender, there has to be a way for the lender to profit on the loan. Since they're giving you a great deal of their own assets and are taking on the risk that you might not repay them, mortgage lenders charge interest on the amount of money they lend you. The interest rates applied to loans vary and depend on the current interest-rate environment, your credit history, the type of loan you choose, and the amount of years you choose to finance the money.

A mortgage rate comparison is the process of comparing the potential mortgage rates offered by lenders before you commit yourself to a loan. By doing a mortgage rate comparison, you become familiar with the general range of rates out there, and you help ensure that you get the most competitive rate possible in your situation. Without doing a mortgage rate comparison, you could be charged an interest rate that's inappropriate for you and the amount of risk you present.

Conduct a mortgage rate comparison online. All you have to do is find a reputable mortgage comparison site, fill out an online form, and click a button. The site will research the mortgage rates of many different lenders and produce a snapshot of the mortgage rate comparison for you.

   

Comments

1/16/2012 10:04:55 AM
tess said:

how do I find a reputable mortgage comparison site?




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