Smart choices · 3 min read
A better deal starts with a better comparison.
Two offers can look similar and still work differently for your budget. Compare the same loan amount, loan type, and expected time in the home.
Compare the same things
Request comparable Loan Estimates. Check the rate lock, term, lender charges, credits, and mortgage insurance. Estimates for taxes or insurance are not necessarily a lender discount.
Consider your time horizon
Paying more upfront for a lower rate may make sense if you keep the loan long enough. A lower upfront cost may matter more if you expect to sell or refinance sooner.
Ask for the explanation
Have your loan officer explain the difference in total borrowing costs over your expected time horizon. Ask what could change before closing.
Use our comparison tool to explore a tradeoff, then confirm every assumption against the actual offers.
Further reading: CFPB guide to comparing loan offers ↗
General education from Bethlehem Mortgage Solutions. Your circumstances and loan requirements may differ. This guide is not an offer or an approval decision.