 TITLE: How to Compare Mortgage Rates CONTENT: How to Compare Mortgage Estimates\n---------------------------------\nThe lenders you're considering can provide loan estimates to help you determine who has the best deal. Before you request loan estimates, though, set a budget for how much home you can afford so you can provide realistic figures to the lenders.\nMake sure you're comparing loans of the same amount and type, rate type and down payment amount. Doing so will help you compare your options more effectively.\nThe lenders will likely need the following information to generate loan estimates:\n*   Your name and Social Security number\n*   The address and sale price of the home you want to purchase\n*   Your desired loan amount (or the amount you want to borrow after making the down payment)\nWhen you have the loan estimates in hand, evaluate these factors:\n*   **Loan amount:** Is the loan amount within your homebuying budget?\n*   **Monthly payment:** What is the monthly principal and interest payment? How much will you pay each month for property taxes, homeowners insurance, mortgage insurance and homeowners association (HOA) dues, if applicable?\n*   **Interest rate:** Is the interest rate fixed or variable? What's the worst-case scenario for interest rates if you get an adjustable-rate mortgage (ARM)?\n*   **Rate lock period:** When are you able to lock in your rate? Mortgage rates tend to fluctuate, so the timing can make a big difference. Can you purchase points or credits to lower your interest rate?\n*   **Mortgage insurance:** Will you be required to pay mortgage insurance in the form of private mortgage insurance (PMI) or a mortgage insurance premium? If so, how much will it cost each month? If it can be removed from the loan, when can that happen?\n*   **Fees and credits:** What are the upfront loan costs? Does the lender offer credits?\n*   **Closing costs:** How much money will you need to bring to closing?\nBe mindful that the amounts listed for escrow accounts, including property taxes and home insurance, may differ. These figures are rough estimates used by the lender to gauge your monthly payment and could change once the loan is approved and cleared to close. Pay attention to factors that can vary by property location, too, such as HOA fees and utility costs. END