|
Mortgage rates are at all-time lows and lenders are busier
than ever. That means it may be up to you to make sure you
have all the information you need to make educated decisions
about your home loan. Besides the obvious question of "What
is the interest rate?" there are other important things
you should know and be prepared to ask about:
Are both fixed-rate and adjustable mortgage loans available?
On adjustable loans:
- How often will the interest rate be adjusted?
- Is there a maximum limit on each rate change?
- How often will the monthly payment be adjusted?
- Is there a ceiling on payment adjustments?
- Can the term of the loan be extended?
- What is the maximum rate that can be charged over the
life of the loan?
- Is there any potential for negative amortization?
How long can I "lock-in" the financing at the
current interest rate?
Is a float down lock available in case rates drop after
I have locked in?
What are the other fees a lender may charge me in conjunction
with my loan?
Are funds for a second mortgage available?
Is there a pre-payment penalty clause?
This involves extra charges for paying off the loan before
maturity. About 80% of all loans in the United States are
paid off early.
What is the "grace" period?
How late can a monthly payment be made before a late charge
is assessed?
What will happen if a payment is missed?
If you sell your house, will the new buyer (if he or she
qualifies) be able to assume your mortgage at the same interest
rate?
Do you have to pay "points" to get your new
mortgage?
Usually lenders charge points for the cost of giving you a
mortgage loan. A "point" is 1% of the loan.
Will the lender require mortgage insurance?
Is the loan serviced locally or is the servicing sold?
Is there a written "good faith deposit"?
You may have additional questions for your lender, too. If
you'd like our opinion, contact us
now. We'd be glad to talk about mortgage information,
buying San Diego real estate, or anything else you want to
know about downtown San Diego properties.
|
