California Mortgage Rates - LoanLove.com Guide Helps California Residents Find The Best Home Loan Rates
SAN DIEGO, June 17, 2013 /PRNewswire-iReach/ -- Borrowers who are looking for the best California mortgage rates can visit LoanLove.com, a trusted destination for current mortgage news and expert loan advice. The team at LoanLove.com is devoted to help empower both first time and experienced homeowners with valuable resources, first-class knowledge and connections to top-rated industry professionals. A new guide posted by the Loan Love team gives advice for home buyers and owners on what to look for when comparing loan rates so that they will be able to get the most advantageous loan terms.
The new Loan Love article explains: "With so many lenders offering mortgage products today, it can be difficult to know which loan is truly the best deal for you. Fortunately, there are a few relatively simple ways to compare mortgage interest rates, and taking the time to explore at least one of them could mean big savings for you over the life of the loan." The article then goes on to give advice on three different things that borrowers should look for if they want to find the best mortgage rates California has to offer.
The first thing that California home loan borrowers should look at is the APR (Annual Percentage Rate) of a loan. Most loans will list two rates – the posted rate and the APR. The posted rate for the loan is the actual interest rate that's applied when calculating how much the homeowner will pay each month. But, since loans come with fees and costs, most of which are paid at closing, the actual cost of a loan can vary significantly from what the interest rate would imply.
The APR, on the other hand, is the actual rate you'll pay when all the associated costs are considered. The APR is usually a little higher than the posted rate, and because different lenders may have different fees associated with their loan products, the APR is the rate you want to compare to see which loan actually offers the best rate over time. To truly compare loans and understand which loan is the better deal, the APR is the only way to go. Left to their own devices, banks would far rather just talk about the advertised rate because it's almost always lower than the APR.
Another great way to compare California home loans is to use a mortgage calculator. The Loan Love article says: "These handy mortgage calculators take basic information – usually your loan amount, the associated interest rate and the term – to quickly determine your monthly payment and provide you with an amortization table that shows how your loan balance will change during the life of your loan. Many loan calculators also allow you to include property taxes and home insurance in your cost estimates to let you get a feel for what your real monthly obligation would be."
And the last thing that the article suggests California homeowners take a look at in order to find the best home loan rates is the Good Faith Estimate (GFE). This is a document that lender's are required to give the borrower within three days after they are approved for the loan. This document contains an itemized rundown of all the fees and costs the homeowner can expect to incur if they accept the loan agreement. It's important to note that while a GFE is not written in stone – some items may be a little more or less costly when it comes time to close – lenders are bound by federal law to ensure the items and costs they quote are given in "good faith" – that is, this is a best estimate of related costs.
The Loan Love article ends by saying: "Comparing the costs of multiple mortgages only sounds like a complicated and time-consuming task; the truth is, any of these simple comparison methods takes only a minimal investment of your time, but the results can yield huge savings for you over the lifetime of your mortgage."
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