Ans
Sure, you’re going to ask this one. It’s the one benchmark we all understand. Or do we? Lenders can move the needle on your interest rate a number of ways, most of them involving additional fees.
But after talking to at least a couple of lenders, you’ll get an idea of a ballpark interest rate you’ll qualify for. Let’s say it’s 5%. We’ll call that your payment interest rate because that’s what your monthly mortgage payment will be based on. Knowing that, you’ll move on to the next — and very important — question, about the annual percentage rate, or APR.
By the way, if your loan is an adjustable-rate mortgage rather than a fixed-rate loan, you’ll want to ask: How often is the payment interest rate adjusted? What is the maximum annual adjustment? What is the highest cap on the rate?
