Five tips when comparing home equity rates

1. Mortgage rates can change daily, and sometimes even multiple times per day depending on economic factors. For accurate mortgage rate comparisons, try to get quotes on the same day.

2. For most loans, the lender's rate sheets have pricing based on a lock period, which are offered in increments such as 15, 30, or 60 days. A lock guarantees the rate for a specific time. Longer lock periods usually have higher rates. Compare mortgage quotes for similar lock periods.

3. Increasing the mortgage rate will decrease the points, while reducing the rate will increases the points. Mortgage quotes have tiered pricing that allows you to buy the rate, or the points up or down. Compare quotes with the same number of points, such as, zero points, or one point.

4. Compare the APR , and have lenders quote the loan points separate from other fees. In addition to standard title, escrow, or appraisal fees, lenders have other fees with names like, processing or underwriting fee. Property taxes, home insurance, and pre-paid interest are not lender fees.

5. Approximate credit scores can be used for general mortgage quotes. If you want a firm rate, the lender will need to run your credit report, but the rate is subject to change until locked. Lenders normally use the middle of 3 credit scores from the borrower who is the primary wage earner.

By: www.crhome.com