Transcript: Mortgage Shopping I: Which type of mortgage is best?
Anchor Intro: Of all the things you could go shopping for, a mortgage is probably the one of the most important. Because if you pick the wrong rate, it could cost you for decades. Bankrate.com saves you both time and money when shopping for a mortgage.
Voice over 1: A home is a big purchase: and a complicated one. And one thing that makes it so complicated is the part where you borrow the money...
Voice over 2: Whether you're talking first mortgage or last, it really pays to understand loan shopping. Because mistakes now can nail you later.
Voice over 3: For example, say you borrow $150,000 on a 30 year mortgage. Lock in 6%, you'll pay $173,000 in interest. Lock in 7, and the tab swells to 209,000. That's 36 grand more.
Voice over 4: And what about those fees you finance? Agree to finance $5,000 in closing costs along with your mortgage, pay 6 and ½ percent, and you'll end up adding 11 thousand dollars to your bill.
Voice over 5: So before you use a mortgage to build that plan, you've gotta plan that mortgage.
Voice over 6: Step one is to make sure your credit history looks good. Because that score is going to mean everything when you apply for a mortgage. If there are surprises, now's the time to find out.
Voice over 7: Next step? Decide what kind of mortgage you want. 15 or 30 year? Variable, Fixed or Hybrid? Consider your options, then decide.
Standup: Finding that perfect mortgage may not be as much fun as finding that perfect house. But it's every bit as important. So make it a priority. For Bankrate.com, I'm Kristin Arnold.