Quick answer
Do not compare mortgage offers by interest rate alone. Compare APR, points, lender credits, loan fees, mortgage insurance, cash to close, payment, and rate lock terms.
A mortgage offer with the lowest rate is not always the lowest-cost loan. Fees, points, credits, mortgage insurance, and closing costs can change the true cost.
Before choosing a loan, compare offers side by side and ask each mortgage professional to explain the numbers in plain language.
Compare the same loan type
A conventional loan, FHA loan, VA loan, USDA loan, and jumbo loan may price differently. Start by comparing similar products and terms.
- Loan type
- Loan term
- Fixed or adjustable rate
- Down payment
- Occupancy type
- Property type
Look beyond the interest rate
A lower rate may require discount points or higher fees. A higher rate may include credits that reduce cash needed at closing.
- Interest rate
- APR
- Discount points
- Origination charges
- Lender credits
- Mortgage insurance
- Cash needed to close
Ask whether the rate is locked
A quote is not the same as a locked rate. Ask how long the lock lasts and what happens if closing is delayed.
- Lock period
- Extension costs
- Float-down options
- Rate change triggers
- Closing timeline
Choose the loan that fits your plan
The best loan depends on how long you expect to stay, how much cash you want to keep, and what monthly payment fits your budget.
- Monthly comfort
- Upfront cash
- Long-term cost
- Flexibility
- Refinance plans
Frequently Asked Questions
Should I choose the mortgage with the lowest rate?
Not automatically. A lower rate can come with higher upfront costs, points, or fees. Compare the full offer.
What is APR?
APR is designed to show a broader annual cost of credit including certain fees, which helps borrowers compare loans.
What is cash to close?
Cash to close is the estimated amount you need at closing, including down payment, closing costs, prepaid items, and credits.
Can Realty Plus help me find mortgage brokers?
Yes. Realty Plus helps consumers search for mortgage brokers by location.