Guides and Policy
Explanation of Terms
- Ethical Lender
- The name of the mortgage company offering this rate. The mortgage company could be a bank, an S&L, a mortgage banker, a mortgage broker, or a consumer finance company.
- Rate
- The note rate. This is what the monthly payments are based on.
Loan.com rates are valid for purchase and rate & term refinance transactions. Rates may differ for cash-out refinance transactions. Rates may change until the full loan package has been received by the lender.
- APR
- APR is an acronym for annual percentage rate. The APR is designed to measure the effective or actual cost of a loan over its life. APRs were designed to help consumers compare loans among lenders / brokers. Different lenders and brokers include different fees and use different formulas when computing APRs, so do not compare loans solely on the basis of APRs.
Loan.com APRs are calculated based on a conforming loan amount of $160,000, or Jumbo loan amount of $400,000. Points/fees/rates may vary for different loan amounts.
- Points
- Points are up-front interest paid to reduce the interest rate. 1 point is 1% of the loan amount. On a $100,000 loan, 1 point is $1,000. Loan.com points quoted include both discount and origination points.
Loan.com lets you search for lenders and brokers depending on how many points you want to pay.
- Loan Fees
- Transaction fees originate from many different sources. Two general categories of fees are 1) Loan (lender/broker) and 2) third party. Loan fees include points, processing, underwriting, appraisal, document preparation, administration, credit, flood certification, tax service, etc. Third party fees include title, escrow, closing agent, attorney, recording, notary, etc. Third party fees tend to be less variable compared to loan fees. When comparing lenders or brokers it is important to compare loan fees, since third party fees will be relatively constant.
Loan.com Fees quoted include all broker and/or lender fees as well as appraisal and credit report fees. Fees quoted do not include fees charged by the third parties including title companies, closing agents, inspection companies, home owners association, insurance companies, etc.
- Lock
- The number of days for which the specified rate can be locked. The Loan.com minimum lock period allowed is 30 days. If you do not close your loan within the lock period, your rate may change. Lenders / Brokers have different rate-lock and re-lock policies. Lenders have different policies about what is required to lock your rate. Always check with your lender about their rate lock requirements. If your lock expires, lenders or brokers typically charge 1) an extension fee, or 2) the higher of the previously locked or new market rate.
- Monthly Payment
- The estimated monthly payment on principle and interest based on loan amount entered and the listed Rate. Please note that actual monthly payment may be higher due to escrows for tax and insurance.
- Last Update
- The last time the Loan.com rate was updated for a particular lender or broker.
- Compare
- The "Compare" feature takes you directly to our Comparator calculator which allows you to directly compare the terms of any of the lenders listed.
- Loan.com Rating
- The Loan.com rating system is designed to assist you in learning more about the lenders listed. Stars may be awarded on the basis of the following:
- One star will be awarded if the lender has affirmed that their borrowing practices are consistent with the Borrower's Bill of Rights.
- One star will also be awarded if the lender is a member in good standing of the Better Business Bureau.
- A third star may also be awarded at Loan.com's discretion if the lender receives positive feedback from its customers.
Loan.com Policies
Loan.com presents rate information submitted to us by lenders/brokers who have signed an affirmation that their lending practices are consistent with the principles embodied in our Borrower's Bill of Rights. Because these lenders/brokers have acknowledged their acceptance of these principles, we have called these lenders/brokers "Ethical Lenders" on our website.
Loan.com does not endorse any listed lender/broker. Information presented on Loan.com by lender/brokers are advertisements by the lenders/brokers, and Loan.com makes no guarantee, explicit or implied that the posted information is accurate.
Loan.com enforces strict policies of honesty and integrity for lenders/brokers who post rates. Any company engaging in "lowballing" or "bait-and-switch" tactics will be put on probation. If that company continues to disregard Loan.com policies, they will be permanently removed from the site. Complaints about lenders/brokers should be forwarded to our research department.
Please note that the rates listed represent the lowest rates currently available from the lender/broker for a loan product. The actual rates available to you will vary based on a number of factors. Please note that these rates are only available to qualified applicants and assume excellent credit. For more information on rates, please click here.
Tips on using Loan.com
Loan offers you a quick and easy way to find the Best Mortgage Rate on the Internet. Shopping for mortgage rates can be fun when you follow these simple steps:
- Go to the state in which the property you are buying or refinancing is located. Most states require that mortgage lenders and brokers be licensed by the state in order to close loans in the state. You should only do business with a lender or broker that is licensed by the state in which your property is located.
- Select the loan program you want.
- Select how many points you are willing to pay.
- Click the "Search" Button.
- Check out the different lenders' rates.
How do you find the best rate?
- Use the same note rate when comparing lenders/brokers.
- Determine the total fees (points plus fees) associated with that rate and loan program. The lender/broker with the lowest total fees is the cheapest.
- Rates are subject to change without notice. When you find a rate you want, you should ask the lender or broker to lock it. Lenders and brokers have different rate-lock policies. Thoroughly discuss with the lender or broker what's required of you in order to lock the loan, including rate-lock fees. Get the rate lock in writing.
- Make sure that the rate lock is long enough, so that you can close the transaction before the lock expires.