Compare mortgages beyond the advertised rate

Two mortgage offers can advertise the same interest rate and still cost different amounts. Ask lenders for written Loan Estimates using comparable loan amounts, down payments, loan types and terms.

Start with the payment: distinguish principal and interest from the total monthly amount. Ask which taxes, insurance premiums and other charges are included, and which you must pay separately.

Next, compare origination charges, points, lender credits, total loan costs and cash needed at closing. A lower rate may require more money upfront. A lender credit may cover some closing costs in exchange for a higher interest rate on the loan. Ask for the trade-off in writing rather than assuming either option is free.

Check whether you have a pre-closing rate lock, when it expires and what could change. For an adjustable-rate loan, ask when rate adjustments begin, how payments could rise or fall, and what caps apply. Compare the APR too, but do not use it as your only decision measure.

Keep a short question list for each lender and request an explanation of inconsistent figures. Use the mortgage calculator for scenarios, then replace assumptions with the lender’s actual written figures. An estimate or calculator result is not loan approval.