"Imagine you want to arrange a mortgage on your first house purchase. You need $200,000.00 Find the best rates and terms available from three different type of lenders such as a mortgage broker a major bank and a banking company such as president choice. Describe the advantages and disadvantages of each and choose the best one."
2007-03-09 12:17:35 · 4 answers · asked by sweet 1 in Business & Finance ➔ Renting & Real Estate
you can get into all kind of variables in the loan business. What you are attempting to do is almost impossible to do.
You are the one getting the loan. Which of the three do you feel comfortable with? Which is charging you less for the loan? Which has the best rate? Can you make the mortgage payments with ease? Did either give you a pre-approval?
The reasons it is difficult to tell you about the various mortgages is because one could be charging a processing fee while another is charging a lender's fee.
One loan could be a no points no fee loan and this loan is costing you a .125, while the other is charging one point, but you can deduct the point off you income tax at the end of the tax year.
So as you can see it boils down to the APR and which ever is the cheapest. One might offer better service. or be closer to where you live.
You are not gonna save that much if the difference is .125 or .25.
What we are trying to tell you is that without the entire loan amount, interest rate, closing cost we are not able to separate the three.
Your best bet is the mortgage broker, he has more underwriters underwriting his loans. He also have more programs, he just might have your major bank and banking company with the president Choice program.
I hope this has been of some use to you, good luck.
"FIGHT ON"
2007-03-09 17:10:16 · answer #1 · answered by Skip 6 · 0⤊ 0⤋
sure you can call all around and run your credit scores down to the point no one can help you. find a broker you like and feel comfortable with and have them explain the different programs out there and dont give your SS#.... then decide if this is a managable situation for you payment wise. then call a few lenders and ask them for there rate & cost for a specific loan program and then you can compare APR the lowest APR is the cheapest to you but !!!! beware of switch and bait at closing. if you aren't happy with what you see at closing ...get up and walk out without signing anything and tell the loan officer you are talking with that you WILL WALK if things change at closing !!!!
2007-03-10 00:14:11 · answer #2 · answered by amstarlender 2 · 0⤊ 0⤋
It's not that simple. First you have to decide what type of mortgage, how much you want to put for a down payment, how many points and what your long term goals are.
Then you can make the comparison for 3 institutions (apples with apples). Try first Countrywide Mortgage since they are the largest in the U.S. Then compare it to the place you bank. Then maybe the 3rd is online. Then you can line them up and see the best one around.
2007-03-09 20:54:45 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Compare the APR, which is the note rate with all the variables factored in. The APR was meant to be a way to compare various loan offers.
2007-03-09 22:35:03 · answer #4 · answered by Dusty 7 · 0⤊ 0⤋