Interest Rates

The many types of interest rates

Research Rates

When you begin checking out, current interest rates and rate movements matter more when you are shopping for a mortgage. Mortgage rates will generally rise and fall along with The Wall Street securities and generally reflect the overall direction of interest rates. By keeping an eye on mortgage market styles and economic indicators, a borrower will then have a better chance of obtaining interest rate savings.

What is APR?

An Annual Percentage Rate (APR) is a tool that is used to compare loans across different lenders. The Truth- in- Lending law has required mortgage companies to disclose the APR when they advertise a rate. It is formed to represent the true cost of the loan to the borrower, designed in the form of a yearly rate. The purpose is to prevent lenders from hiding fees and upfront costs behind low advertised interest rates.

Meeting with a Lender

You may prefer to meet with the mortgage company before house shopping so that you determine in advance how much you can afford and the mortgage amount for which you will qualify. This step is called pre-qualification and can save you time and trouble by making sure you are looking in the correct price range.

Lock in Your Rate

A lock in rate, also referred to as a rate lock or rate commitment, is a lender's guarantee to hold a certain interest rate and a certain number of points for you, usually for a determined amount of time, while your loan application is processed. Depending upon the lender, you may be able to lock in the interest rate and number of points that you will be charged when you file your application, during processing of the loan, when the loan is approved.

Making sure Interest Rates don't ruin you

The best way to make sure interest rates don't ruin you is through debt consolidation. This is where you're monthly costs are transferred into lower payments which in turn lower the interest rate making your life much easier.