A mortgage rate moving by half a percent might not sound dramatic.

But over a large loan, it can make a noticeable difference.

For example, on a $400,000 30-year mortgage, the difference between two rates that are 0.50% apart can change the monthly principal and interest payment by more than $100.

Over several years, that adds up.

But rate should not be your only concern.

A lower rate may come with:

• Discount points
• Higher closing costs
• A different loan program
• A larger down payment

Always compare the complete loan.

Look at:

Rate + payment + closing costs + cash required.

The lowest advertised rate is not automatically the best financial option.

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