What information do you need to compare loan options?

Basic information about the loan…

Type of Mortgage:  fixed rate, adjustable rate, conventional, FHA, other?

If adjustable, see below…

Minimum down payment required…

Loan term (length of loan)…

Contract interest rate…

Annual percentage rate (APR)…

Points (may be called loan discount points)…

Monthly Private Mortgage Insurance (PMI) premiums…

How long you must keep PMI…

Estimated monthly escrow for taxes and hazard insurance…

Estimated monthly payment (Principal, Interest, Taxes, Insurance, PMI)

Fees

Different institutions may have different names for some fees and may charge different fees.  We have listed some typical fees you may see on loan documents.

Application fee of Loan processing fee…

Origination fee or Underwriting fee…

Lender fee or Funding fee…

Appraisal fee…

Attorney fees…

Document preparation and recording fees…

Broker fees (may be quoted as points, origination fees, or interest rate add-on)…

Credit report fee…

Other fees…

Other costs at closing/settlement…

Title search/Title Insurance (this is usually paid by the seller)…

    For lender…

    For you…

Estimated prepaid amounts for interest, taxes, hazard insurance, payments to escrow…

State and local taxes, stamp taxes, transfer taxes…

Flood determination…

Prepaid Private Mortgage Insurance (PMI)…

Surveys and home inspections…

Other questions and considerations about the loan

Are any of the fees or costs be waived?

Is there a pre-payment penalty?

     If so, how much is it?

     How long does the penalty period last?

Are extra principal payments allowed?

Lock-ins

Is the lock-in agreement in writing?

Is there a fee to lock-in the rate?

When does the lock-in occur – at application, approval, or another time?

How long will the lock-in last?

Is the rate drops before closing, can you lock-in at a lower rate?

Credit life insurance

Does the monthly amount quoted to you include a charge for credit life insurance?

If so, does the lender require credit life insurance as a condition of the loan?

How much does the credit life insurance cost?

How much lower would your monthly payment be without the credit life insurance?

If the lender does not require credit life insurance, and you still want to buy it, what rates can you get form other insurance providers?