| If you are new to the mortgage market, shop around, as various ethical lenders charge slightly different rates - to find a legitimate rate that's even part of a percentage point lower means much reduced total payment. By that I mean that the interest rate charged is stable (fixed rate), and that your payments will continue at the same rate throughout the life of the contract. If you agree to a contract where the ethical lender can change the rate after a given period (variable rate), sometimes the current rate is less, for the lender can change the rate if rates in general go higher a few years down the road. Do some of the people that you know have substantial experience with mortgages? Ask around among your relatives (ones who can keep a confidence), friends, people that you know in social, sport, religious groups, etc. If you find someone knowledgeable, perhaps ask them to explain how mortgages work, and maybe their advice as you make your plans. Even have them assist in the negotiations with your lender? As others have said - beware of the agencies that offer drastically lower rates - for often that's just for a short while, then you'll have to pay the actual costs. Or maybe it's interest only - and after five years, you'll still owe as much as you do at the beginning. Sometimes, as another said, it's less than the actual going rate of interest on that amount of loan - so the principal amount that you owe grows - you're paying less than the interest on that amount of principal, so some of it gets added to the principal, making it grow each month. When someone offers something for much leess than the regular, going rate - there's usually a catch. The important trick is to find it. I don't think that I want to have a contract with some faceless agency in a distant place worth hundreds of thousands, and involving my secure continuation of being able to stay in my home and continui ng to build my ownership of it. Perhaps vulnerableto some surprise interpretations of the contract later that put that ownership in jeopardy, or required me to fork over much bigger bucks than I thought that I'd contracted for. Possibly/likely unable to get out of that contract by paying them off and using another lender. Are there mortgage brokers in your area, who know the mortgage market well and deal as agent with a number of lenders of various types. Usually they don't charge a fee - are paid by the lender. One of them could explain a lot about how the mortgage market works - and you might choose to have him find one for you, with appropriate terms, at a competitive rate (with no pitfalls). Quite likely if you sourced information from local lenders, yourself, you couldn't find a better rate than offered by a broker - their expereince with many lenders has taught them where to find the best legitimate terms and rates. Good wishes as you continue to figure out how to deal with this important issue - it could well cost you multiple thousands to get it wrong. Maybe result in your losing your home, after a number of years and substantial regular payments ole joyful | 
