Not much happens in the world until a lender says “Yes.” There’s no question, taking out a mortgage to buy a home is a big deal. Just like you probably shouldn’t buy the first house that you see, you might want to consider shopping around mortgages to get the best rate. What can seem like a small difference in interest rates can turn into thousands of dollars down the road. There’s more to a mortgage than the rate, too. Let’s look at “points” in a mortgage. Often times lenders will offer points — this is shorthand term meaning one percentage point of the total loan– to reduce the overall interest rate. With all of these different ins and outs of mortgages, it’s good to understand your options. Click here to learn the details.
Let’s look at some specific questions sent in by DearMonty readers from across the country. Read more Q&A articles about the “Negotiating” stage of the Home Buying process: