How to Compare Home Loans

by Isaac Benmergui, Esq on April 12, 2017

How to Compare Home LoansAnyone who has bought a home since 2009 knows how much easier it is to understand the terms of your loan far beyond your monthly payment. But how can you use these new tools and information to compare two different loan options?

Within a few days of applying for a loan, your loan officer will give you some documents that explain your offers. The easiest way to compare these offers is to use the Loan Estimate. The Loan Estimate will tell you how much you’re being charged to receive the loan, the interest rate, and your monthly payment.

If you are comparing a few different offers, check out the Comparisons section. It will allow you to put different loan products head-to-head and compare apples with apples. In this section, you can see how much you’ll pay in the first five years, which adds fees to the first five years of house payments, minus home insurance and property taxes. The top number in this section is what you’ll pay total. The bottom number is how much of the principal on your house you will have paid. As you can guess, you want the top number to be lower than your other offers and the bottom number to be high. That means you’re paying as little as possible to pay the most possible off of your loan.

These two numbers will help you determine which loan costs more over those initial five years. This may be more important to you or less important depending on a number of factors, including how expensive housing is in your location, how much you have to spend on housing each month, how expensive your current rent is, and how long you plan to stay in your home.

Call Miami Real Estate Lawyer Isaac Benmergui at 305.397.8547 and set up a no charge, no obligation consultation to discuss your case. We have over a decade of experience handling Real Estate and Civil Litigation cases throughout Miami and South Florida, and will use our expertise to help your case to the best of our abilities.

Previous post:

Next post: