Get Mortgage Comparison Sheet

To compare mortgage loans, consider interest rates, terms, characteristics and costs, and other factors that might apply to your individual situation, like if you get along with a particular lender, or have friends who've had positive dealings with a lender.

The . 25 percent difference adds an extra $26 a month. Although that may not seem like a significant amount of money, it adds up to over $4,000 over the life of your loan.

In short, mortgage rates matter. While a difference of 1% may not seem substantial, even when you're comparing monthly mortgage payments on a modest loan amount, the additional amount you could end up paying in interest is staggering. And, of course, the larger your loan amount, the greater these differences will be.

The interest rate and/or annual percentage rate (APR) is one of the most important factors to consider when determining which loan is best. For some loan types, comparing interest rates is appropriate, but the APR is a better number to review.

As you'll see in the table below, a 1% difference in mortgage rate on a $200,000 home with a $160,000 mortgage, increases your monthly payment by almost $100.

Loan term in years. Compare the different loan terms, and when possible, choose the shortest loan term available to you. ... Interest rate/Annual percentage rate (APR) ... Balloon payments. ... Total amount owed. ... Monthly payment.

Many experts often say refinancing isn't worth it unless you drop your interest rate by at least 0.50% to 1%. ... A large loan size may result in significant monthly savings for a borrower, even when rates dip by only 0.25 percent, says Reischer.

Negotiate! In order to get the best deal on your loan, you must negotiate. Negotiate a better interest rate, as well as closing costs. Don't be afraid to ask your lender or broker to waive or reduce fees, or agree to a lower interest rate or fewer points.

Although there are a variety of different factors that affect interest rates, the movement of the 10-year Treasury bond yield is said to be the best indicator to determine whether mortgage rates will rise or fall.