February 2008
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Cost: $27,000
The annual percentage rates on mortgages in a given area can vary by close to a percentage point. That might not seem like much, but over a 30-year term, it adds up to a bundle.
HSH Associates, which publishes mortgage data, told us the range on 30-year fixed-rate mortgages in New Jersey last November was 5.875 to 6.625 percent. We applied that to a purchase of a $299,000 home, assuming a 20 percent down payment and $239,000 mortgage. Over 30 years, the higher-priced mortgage would cost $360,000, while the lower-priced one cost only $333,000 in 2008 dollars.
What you can do. Shop for the best mortgage rate by checking local banks, your credit union, big-lender Web sites, mortgage brokers, and mortgage-related Web sites such as www.hsh.com.
