1.Although your monthly payment may be higher,you can save tens of thousands of dollars in interest charges by shopping for the shortest term mortgage you can afford. For each $100,000 you borrow at a 7% annual percentage rate (APR), for example, you will pay over $75,000 less in interest on a 15 year fixed rate mortgage than you would on a 30 year fixed rate mortgage.
2.You can save thousands of dollar in interest charges by shopping for the lowest rate mortgage with the fewest points.On a 15 year $100,000 fixed rate mortgage, just lowering the APR from 7% to 6.5% can save you more than $5,000 in interest charges over the loan, and paying two points instead of three would save you an additional $1,000.
3.Check the internet or your local newspaper for mortgage rate surveys, then call several lenders for information about their rates(APRs), points and fees, If you choose a mortgage broker, make certain to compare their offers with those of direct lenders.
4.Be aware that the interest rate on most adjustable rate mortgages (ARMs) can vary a great deal over the lifetime of a loan. An increase of several percentage points might raise payments hundreds of dollars a month, so ask the lender what the highest possible monthly payment might be.
