How can I compare the closing costs of different mortgage loans?

By using the mortgage closing costs calculator that shows how closing costs impact the interest rate a borrower can quickly see how these costs immediately impact the interest rate and the monthly mortgage payment on a home loan.  An indirect value of the mortgage calculators use is it forces the borrower to analyze theses costs and therefore use this information to compare and shop for a loan with the knowledge of how the rates, points and costs from one lender may be different from another.  The mortgage calculator has some preset closing costs items but is not all inclusive.  When comparing different loan offers you can enter the costs from each offer.  If you are not sure about the exact charges, you can ask for an estimate of costs from the lender before you apply and they will supply you with a Good Faith Estimate of projected closing costs within 72 hours of making an application.  These costs can vary widely so use the mortgage calculator compare each item and make an informed choice before you accept any mortgage loan.

This entry was posted on Wednesday, December 10th, 2008 at 5:18 pm and is filed under Mortgage FAQs. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.