How to Conduct an Online Home Loan Comparison

If you are in the market for a mortgage or considering a refinance an online home loan comparison can help you weigh the important benefits of your loan. A comparison is a process that provides home loan market rates and a chance to review your entire financial picture.  Your mortgage broker or lender may also be able to help you with the comparison.

Why You Should Use Home Loan Comparison Services

Sometimes, the lower interest rate is not the best mortgage for you. Using a home loan comparison service helps you compare and contrast the overall financial picture of a loan program. You are able to compare fees and other charges that may also be applied to the mortgage.

Many sites allow you to estimate your monthly savings and expand the financial picture to include different types of mortgages.  You can compare:

  • Annual Interest Rates
  • Annual or Monthly Fees
  • Loan Flexibility
  • Maximum loan to value Ratio
  • Potential Exit Charges and Fees

 How to Find an Online Home Loan Comparison

There are a variety of sites that offer home loan comparison. Many offer it as a free service. Banks, mortgage brokers, credit sites, and other finance sites have the services available for your use.

 How to Use a Home Loan Comparison Site

You will need to know what you want to use the sites properly.  For example, do you want a government backed loan, or FHA loan, or do you want a private loan, or Conventional loan?  Do you want to compare the monthly payment on a fixed rate 5.000% mortgage to a 6.00% mortgage?  Do you want to know what the payment would be to shorten your mortgage from a 30 year loan to a 15 year loan?  

Many lending sites may provide you with a list of lending institutions that meet your desired loan criteria, making the information provided a custom fit.  Typically, the tools are written in layman terms to facilitate consumer use. 

Loan comparison services can offer convenience, ease of use, and research that can ensure you get the best mortgage for your situation.