Home buyers and refinancing homeowners are always told to shop around for a loan. In fact, the new federal Loan Estimate closing document that replaced the Good Faith Estimate form of the past was created in part to encourage consumers to compare loans before finalizing their financing.

A new mobile loan estimate comparison tool, known as “Rate My Rate,” was recently introduced by eLEND, a division of American Financial Resources. Borrowers can use the tool to compare a Loan Estimate from one lender with offers from other lenders on the eLEND platform.

The Rate My Rate tool can read information from a borrower’s Loan Estimate form and run that information through the eLEND system to compare loans in five categories:

• Loan costs over five years
• Principal paid in five years
• Annual percentage rate
• Total interest percentage
• Total loan cost

Although this pricing information is important for consumers to understand, it’s essential that they dig deeper to find out about the reputation of the lender offering each loan.
Borrowers need to be confident that the lender will fund the mortgage and complete the loan on time so that they can reach settlement without complications caused by the lender.

For information on eLEND’s Rate My Rate mobile loan estimate comparison tool, visit www.elend.com/my-loan-center/#/compare.

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