how to compare two mortgage offers

how do I compare two mortgages in order to find out which one is better deal

jenkin7 · Posted: Fri Nov 13, 2009 12:03 am Post subject:

Hi Guest,

When you shop around for a home loan and get various loan offers, a comparison becomes inevitable. Annual percentage rate (APR) is a factor often used to compare loan offers. It is different from the interest rate that the lender quotes you. The APR represents the cost of borrowing a mortgage loan and takes into account not just the interest rate, but also the addition costs. You can use an APR calculator to find out the annual percentage rates on various mortgage offers. Apart from APR, you should also check the maximum LTV ratio, mortgage insurance payments (if any), cash reserve requirements, interest rate lock-in periods, etc. to find out which loan offer gives you the best deal.

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