Home Mortgage Tips

Comparing a new home mortgage may not be as simple as it seems. For example, if you gather quotes for home mortgages over a period of two or three days, there's a good chance that your comparison is not accurate.

1. Home mortgage rates can change on a daily basis, and sometimes even multiple times per day depending on current economic factors. In order to get an accurate comparison, it is recommended to get quotes on the same day.

2. For certain types of home mortgages, the lender's interest rates have pricing based on the lock periods, which are offered in various increments such as 10, 15, 30, or 60 days. Longer lock periods usually have higher mortgage loan rates. Try to compare rates for similar lock increments.

3. Tiered pricing for a home mortgage allows the lenders to offer the option of buying the mortgage rate up or down. Increasing the rate decreases the loan points, and reducing the rate increases the loan points.

4. Having lenders quote the points separate from the other fees for a home mortgage can make it easier to compare mortgage rates, points, and fees. (Note: Taxes, insurance, and pre-paid interest are not mortgage fees)

5. Since home mortgage rates are usually based on credit scores, lenders may want to run your credit, unless you have the information, or you could have lenders quote rates using an estimated score, to avoid multiple credit inquiries.

Using home equity as a supplement for income. Some information for those faced with the need to use their home equity for personal cash out.

Using your home equity for home improvement. Which loan type is best for improvements, home equity loan, second mortgage, or a credit line?

Choosing a home equity loan or a credit line. Compare the differences between a home equity loan and a home equity credit line.

What lenders look for in a mortgage application. Guidelines that lenders use to qualify applications for new home loans and home equity loans.