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When shopping for a fixed rate mortgage, there are a lot of different variables that you are going to need to take into consideration. Here are some of the variables that you will want to look for when choosing a fixed rate mortgage.
1. Interest Rate
One of the most important things that you should look at is the interest rate of the mortgage. This is going to affect your monthly payment as well as the total amount of money that you pay to the lender over the life of the loan.
2. Closing Costs
You should also pay special attention to the closing costs on the loan. The closing costs on a regular mortgage can amount to thousands of dollars. This means that you need to make sure that you ask about the closing costs when you are shopping around between lenders. They should give you a good-faith estimate within three days of applying for the loan. This will give you a detailed breakdown of all of the closing costs so that you can easily compare.
3. Prepayment Penalty
You will also want to be aware of any prepayment penalties with the mortgage. Ideally, you would like to find a fixed rate mortgage that does not have any prepayment penalties.
