Fixed Home Loans

• 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.
• Ask whether the rate is fixed or adjustable. Keep in mind that when interest rates for adjustable-rate loans go up, generally so does the monthly payment.
• If the rate quoted is for 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.
• Ask 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.

Source: Buying a Home/U.S. Department of Housing and Urban Development (HUD)