Q: With interest rates so low, I was thinking of refinancing. What basic questions do I need to ask my lender?
A: When you go shopping for a loan, ask each lender and broker for a list of its current mortgage interest rates and whether the rates being quoted are the lowest for that day or week. Find out if the rate is fixed or adjustable. If it’s an adjustable-rate loan, ask how your rate and loan payment will vary, including whether your loan payment will be reduced when rates go down. Be sure to inquire about the loan’s annual percentage rate (APR). The APR takes into account not only the interest rate but also points, broker fees, and certain other credit charges that you may be required to pay, expressed as a yearly rate.
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