Finding a mortgage is likely the largest financial decision you’ll ever make, so when choosing a mortgage, remember the adage of “buyer beware.” Three different types of businesses you can go through to get a mortgage are traditional banks, mortgage companies, and mortgage brokers. No one institution is inherently better than the other. The best thing for you is to be well educated and shop around. Online options for finding a home loan include websites that allow you to solicit bids for your mortgage from many companies at the same time.

Closing costs vary widely when looking for a mortgage, as do interest rates. Another expense that varies is points. A point is 1% of the mortgage amount and is used to reduce the interest rate on your loan. For example, on a $100,000 mortgage, a point is $1000. A buyer paying no points might have an interest rate of 7% while a buyer paying 2 points, or $2000, might have an interest rate of 6%. Your interest rate will also be higher or lower depending on your credit rating. Other mortgage costs to keep in mind are escrows, appraisals and title searches. Most of the costs and fees involved in a mortgage may be open to negotiation. If you’re not happy with one company’s numbers, look at other companies.