4 Things To Know About Mortgage Rates

1. Keep in mind waiting can be costly.

When interest rates go up, the cost of a home can rise by tens of thousands of dollars – affecting the loan amount you may be approved for. Your mortgage lender can work with you to determine a comfortable monthly payment, taking all factors into consideration.

2. Look at the annual percentage rate (APR) and interest rate when comparing loans, even if you’re quoted the same interest rate from different companies.

The nominal interest rate is the percentage charged for borrowing money. When shopping for a mortgage, you’ll generally be quoted an interest rate. It’s considered the base rate, or starting point, which directly affects the monthly loan payment.

The APR is the rate calculated when the fees associated with making the loan are added to the original loan amount. This is important because the fees charged can change from lender to lender, and the fees associated with the APR can vary as well, so the APR may not be the same even if the interest rate is. The APR shows you the annual cost of a loan, including fees.

3. Ask about an origination fee.

That’s the fee a lender can charge to process the loan. Bell Bank Mortgage’s no origination fee program* – available on most home loans – can save qualified homebuyers thousands because they’ll need less in closing costs.

_{*No origination fee for most loan programs. Some exclusions apply.}

4. Use caution when talking to others about interest rates.

The rate one person gets isn’t necessarily the rate someone else will receive. Many variables go into determining an interest rate, including:

• Type of loan
• Credit score
• Loan amount
• Down payment amount
• Length of loan
• Purpose of loan

Lenders are required to disclose a loan estimate to all borrowers showing the loan’s APR. Looking at your interest rate, loan fees and APR will give you a better understanding of what the loan will cost you over the long term.