How to Compare Loans Amongst Different LendersWritten by Martin Lukac
Comparing loans of different lenders is often most difficult part of mortgage shopping.Firstly, it is important to keep in mind that mortgage packages consist of more than interest rates. They consist of a quoted rate, points and closing costs. Points are an up-front fee paid to lender at closing. Each point equals one percent of loan amount. Points are charged, or paid, to lower or increase rate on loan. Most lenders will allow you to choose amongst a variety of rate and point combinations for same loan product. Therefore, when comparing rates of different lenders, make sure you compare also associated points. Closing costs typically consist of loan related fees, title and escrow charges, government recording and transfer charges and can add thousands of dollars to cost of your loan. When comparing lenders it is important to compare loan related fees (i.e. fees which lenders charge to process, approve and make mortgage loan), since other fees are typically independent of lender. Secondly, when comparing loans of different lenders you need to thoroughly investigate and compare all loan features: maximum LTV, mortgage insurance payments (if any), credit and cash reserve requirements, qualifying ratios, etc. Pay special attention to presence of prepayment penalties and availability and terms of conversion options (such as rate reduction option, or option to convert an ARM to a fixed-rate mortgage). Thirdly, for each loan you are comparing find out lock-in period, during which interest rate and points quoted to you will be guaranteed. Lock-ins of 30, 45 and 60 days are common. Some lenders may offer a lock-in for only a short period of time (15 days, for example). Usually, longer lock-in period, higher price of loan. The lock-in period should be long enough to allow for settlement before lock-in expires. Finally, make sure that you are comparing interest rates on same day. Rates change daily, if not a couple of times a day. So, what is best way to compare loans among different lenders? First of all when you compare different lenders you should compare loan products of same type (e.g. 30 yr. fixed). It does not make sense to compare different types of loan programs (e.g. 30 yr fixed vs. 15 yr fixed, or fixed vs. adjustable).
| | The Investing Power Behind RandomizersWritten by George Papazoglou
Reader,Let's give out definition of a 'RANDOMIZER': "A 'profits randomizer' is an electronic investing mechanism, that divides wealth with absolute justice." George Papazoglou - Greece / 2004. Let me ask you a question... Can you name me ONE investing SYSTEM that distributes 'wealth' so fast, justifiably and utterly? What would happen if King Solomon decided to share wealth with humans? How richer would you, become? And what if King Solomon allowed you to reaping multi-level shares in six-levels down? "Bob Mobino Turns a $60 Investment in $97.200 within six-months and... some advertising!" See news: http://news.smart-shopping-mall.com ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
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