The Smart Way to Choose a Mortgage

Here are some serious questions to ask yourself and your loan officer BEFORE you sign your loan application:

1) What type of loan is this? Fixed, adjustable, balloon, etc.

2) What is the contract interest rate?

3) What is the annual percentage rate (APR)?

4) How long is the repayment term? 30, 40, 20, 15 years?

5) How much down payment is required?

6) Are there funds available to help you with your down payment should you need assistance?

7) Will you be required to escrow your taxes and insurance, or do you have a choice to pay those yourself?

8) What is the amount per month that you’ll pay towards your escrow (if you’ll be escrowing)?

9) Will your loan have private mortgage insurance? If so, when and how can you get that removed?

10) What are the estimated lender’s fees for this loan, including origination fees/points, broker fees, funding fees, application fees, etc?

11) What is your total estimated monthly payment (with principal, interest, taxes and insurance)? Does it fit comfortably within your budget?

12) What is your total debt to income ratio?