Walk through at various times of day and visit local businesses. Drive there after work to see what the commute is like. The term of your mortgage is the amount of time you will take to pay the lender back, and the rate is the interest they will charge as the cost of borrowing the money. This differs from a simple interest rate because it reflects the complete cost of the loan. The APR includes closing costs, finance charges, loan fees, and points.
Mortgage points are a fee that lenders charge to cover the costs in administering the loan.
By paying more points at the start of the loan, you can negotiate a lower interest rate. Buying points makes the most sense the longer you plan to stay in your home, because savings from a lower rate add up as the years go by. Fixed-rate mortgages have an interest rate that stays the same for the entire term of the loan. They re easier to qualify for, have lower monthly payments, and maximize tax law advantages. They are ideal for older buyers who can handle higher monthly costs and want to finish the loan earlier and save interest charges.