|
3.
Shop loan programs and rates
To
shop for a loan you will need to:
- Think
about how long you plan to keep the loan.
If you plan to sell the house in a few years you may want
to consider an adjustable or balloon loan. On the other
hand, if you plan to keep the house for a longer time, you
may want to look at fixed loans.
- Understand
the relationship between rates and points. Points are
considered to be prepaid interest and are tax deductible.
Each point is equal to one percent of the loan. So for example
1 point on a $150,000 loan is $1,500. The more points you
pay, the lower the rate you will get.
- Compare
different programs. Shopping for a loan can be difficult.
With so many programs to choose from, each of which has
different rates, points and fees, it's hard to figure out
which program is best for you. That's where an experienced
loan officer can help you make a decision that's best for
you.
Go
to Step 4 |
