| Buying a Home - interest rate factors
Buying
a Home - How does the interest rate factor in securing a mortgage loan?
A
lower interest rate allows you to borrow more money than a high rate with
the same monthly payment. Interest rates can fluctuate as you shop for a
loan, so ask-lenders if they offer a rate "lock-in" which
guarantees a specific interest rate for a certain period of time.
Remember
that a mortgage lender must disclose the Annual Percentage Rate (APR) of a
loan to you. The APR shows the cost of a mortgage loan by expressing it in
terms of a yearly interest rate. It is generally higher than the interest
rate because it also includes the cost of points, mortgage insurance, and
other fees included in the loan.
>> Learn what happens if interest rates
decrease, and you have a fixed rate mortgage loan
|
