A mortgage quote is pretty much exactly what you would expect. It's a quote from a lender for your mortgage, which provides you with an interest rate and term for the mortgage.
You can get a quote on any type of mortgage, from a variable rate mortgage. You can get a quote on various terms, from 6 months to 10 years. It's up to you. Most lenders, however, will want to steer you in the direction of the type of mortgage that will make the most money for them. So it's up to you to decide which mortgage will work best for you, in advance.
How do you decide what kind of mortgage you would like to get quotes for? Here are a few simple guidelines:
- If interest rates are going down, consider a shorter-term mortgage. Go for one year or less (if your credit rating and life circumstance will allow). Read up on financial sites and see whether rates are expected to go down, stay the same, or go up; during what time frame. Based on this information you can decide whether to lock in, for what time period and whether a variable mortgage or adjustable rate mortgage are better deals.
- If interest rates are going up consider a longer-term mortgage. However, it's not usually in your best interests to lock in for more than 5 years. If you do, you'll likely end up paying a much higher interest rate on average than if you took a shorter mortgage or a variable mortgage. You may also out on being able to lower your rate. Again, keep your own credit rating and life circumstances in mind.
- If you are good at saving money get the best prepayment and payment frequency options you can. Sacrifice as much as percent interest to get these (particularly if you are good at saving or expect to have a 'windfall' in the near future), but never sacrifice more than that. Keep in mind that most of us may have the best of intentions regarding extra payments, but we may not actually make them. You still need to get the best interest rate you can.
One of your best tools in getting quotes is the Internet. Many sites offer free mortgage quotes from either one or many lenders. This can save you a lot of footwork and hassle.