This mortgage comparison table is a handy way to keep track of the varying terms and rates offered by the different mortgage lenders you are considering. By keeping all the variables associated with a particular lender in front of you it easier to get an overall picture of the loan that lender is offering to you. By lining up the terms from different lenders side-by-side, it is easier to compare and contrast the benefits being offered by each lender beyond just the interest rate. For the sake of comparison, you should ask each lender to quote an interest rate with no discount points or origination fee.

You can print out this form (by highlighting just the form and printing the selection) to fill out while you are talking to prospective lenders. Once you have narrowed your choice to one or two lenders, be sure to get their detailed estimates (Good Faith Estimate of Settlement) in writing and signed!  Also ask for a written statement regarding their interest rate lock-in policy--you need to determine the lock-in period for the interest rate you were quoted (for example, 45 days) and what rate adjustments you can expect if interest rates drop below your locked-in rate before closing.

Adjustable rate mortgages are very complex and you should obtain a written prospectus before applying. The questions that should be addressed and used for comparison are the financial index and margin being used for calculation; whether the initial rate being quoted is a discounted rate; the rate caps and the payment caps; the adjustment interval; and the conversion to fixed-rate policy.