Are you like many consumers who find themselves overwhelmed by the number of lenders and mortgage options available online? Are you concerned that you'll leap into an online mortgage application only to later find that the programs offered don't best suit your needs?

One solution is to initially visit neutral sites that won't try to sell you something or match you with lenders that could. One such site is Fannie Mae's consumer-focused Homepath.com. Fannie Mae is the nation's largest provider of funds to lenders who provide home financing, but makes no direct loans to consumers. Fannie's mission with this site is to help consumers obtain the lowest-cost mortgage by clarifying costs and comparing mortgage options between individual loans. It's part of Fannie Mae's “Mortgage Consumer Bill of Rights” initiative launched in January and is proving a great neutral location for gathering information about applying for and obtaining mortgage loans online and off.

At Homepath.com, you'll find an excellent resource in their True Cost Calculator (SM). It takes into account your down payment, interest rate and points, mortgage and title insurance costs, appraisal fees, and other fees typical to a particular loan. By evaluating each loan compared to total costs, not just interest rates and/or discount points, you can choose the best loan to meet your individual needs.

Besides giving you the bottom-line cost for a loan program, the True Cost Calculator(SM) can also compute your after-tax savings for each loan program. The calculator applies not only to purchase mortgages but for refinances as well.

After comparing loans on the site, there are links to put you in contact with lenders around the country (if you desire) who make the type of loan you're looking for. In addition, you can sign up to receive online newsletters from Fannie Mae, locate foreclosed properties for sale, and access articles to help you be an informed borrower. If you're interested in deeper information on how the mortgage market works, check out http://www.fanniemae.com, Fannie Mae's mortgage industry-related site.

While accessing mortgage information and applying online may save time, there's no replacement for a real person (on the phone or via email) to answer your questions. Make sure any online lender you choose provides strong customer support (ideally one person assigned to your loan file) so that you can email and/or phone to get the answers you need, when you need them. Without good one-on-one information and assistance, you could find online mortgaging a disappointing and frustrating experience.

Published: August 28, 2000

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