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Mortgage Lenders
Mortgages are big business, and there are a large number of
mortgage lenders for you to choose from when looking to secure
a mortgage. Many people will choose their mortgage lender based
on the reputation of the company, or because they have had a
previous mortgage with them.
While neither of these approaches are bad, you should question
them – for example if you are choosing based upon reputation
where has that reputation come from, is it because of a truly
good service and prices, or from a large marketing campaign.
The cost of your mortgage should be high on the list when deciding
on which mortgage lender to take out your mortgage with, even
a small difference in the interest rates charged can add up
to a significant amount over the life of the mortgage.
When you are comparing the mortgages on offer from the various
mortgage lenders be sure that you are comparing like-for-like,
ensure that you would be putting up the same amount as down
payment, and that the mortgages have the same repayment term.
Mortgage lenders are required by the Federal Truth in Lending
law to quote the cost of the mortgage as an APR (annual percentage
rate), this is the cost expressed as a yearly rate. The figure
given is the cost of the mortgage to the borrower in relation
to the amount being borrowed, which is why it is quoted as a
percentage.
Comparing the APR of the mortgages from the mortgage lenders
will allow you to directly compare the true cost of each, and
see clearly which mortgage will work out cheapest for you.
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