Compare Mortgages and Connect with Top Lenders
Use the FREEandCLEAR Mortgage Comparison Calculator to compare mortgage proposals with different terms, interest rates and closing costs to determine the mortgage that is right for you. When you submit your information we connect you with up to four leading lenders so that you can confirm your mortgage terms and compare multiple proposals to find the mortgage that is right for you. We also offer a version of this calculator that does not require personal information
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How to Compare Mortgage Proposals
Shop for Your Mortgage
Borrowers should shop for a mortgage business just like they would any other big purchase. FREEandCLEAR recommends that borrowers compare proposals from at least four lenders before selecting a mortgage. There are different types of lenders -- banks, mortgage banks, mortgage brokers and credit unions -- and borrowers benefit by contacting multiple types of lenders. For example, a mortgage broker compares multiple lenders on behalf of borrowers while a big bank may offer competitive mortgage rates, especially for existing customers. Shopping for a mortgage takes extra time but can save borrowers thousands of dollars in closing costs and interest expense over the life of their mortgage.
Mortgage Items You Should Compare
The key items that borrowers should compare when shopping for a mortgage are interest rate and closing costs. Your mortgage rate is the rate of interest you pay to the lender for borrowing money while closing costs are the fees and expenses borrowers are required to pay to the lender and third party to process and close your mortgage. In some cases there is a trade-off between mortgage rate and closing costs. For example, a lender may quote a lower rate but higher closing costs as compared to another lender. Use our Mortgage Comparison Calculator above to compare mortgages with different interest rates and closing costs.
Documents You Should Request from Lenders
When you are shopping for a mortgage make sure that lenders provide you with a Loan Estimate and Lender Fees Worksheet. Lenders are legally required to provide a Loan Estimate that outlines key mortgage terms such as interest rate and closing costs within three days of submitting a loan application. The Lender Fees Worksheet provides more detailed information on mortgage costs and fees. Lenders should provide both the Loan Estimate and Lender Fees Worksheet to borrowers free of charge. Borrowers can use the information provided on these two documents to more easily compare mortgage proposals from different lenders.
Compare Different Types and Lengths of Mortgages
Mortgage comparison is also about comparing different types and lengths of mortgages. For example, borrowers should compare a fixed rate mortgage to an adjustable rate mortgage (ARM) or a 30 year loan to a 15 year loan. When comparing different types and lengths of mortgages borrowers should consider if their interest rate and monthly payment can change over the course of their loan, like it can with an ARM. Additionally borrower should compare both the monthly payment as well as total interest expense over the life of the mortgage. For example, a 15 year mortgage has a higher monthly payment than a 30 year mortgage but can save borrowers tens or hundreds of thousands of dollars in interest expense of the term of the loan.
More FREEandCLEAR Mortgage Resources
Review our step-by-step guide on how to compare mortgage proposals including how to negotiate the lowest mortgage rate and closing costs
Compare mortgage rates and fees for top lenders near you. Comparing proposals from multiple lenders is the best way to save money on your mortgage
Got mortgage questions? We love answering them. Submit your mortgage questions and receive an informative response within 24 hours
Money and time-saving advice across a wide range of mortgage topics from an expert with over forty years of industry experience