:: Buyers :: Mortgage Information
There are so many varying mortgage plans currently available. Doing a little
research upfront will help you select the mortgage plan that best suits your needs.
You should consider the following and/or ask your lender the following when shopping
for a loan:
1. How long do you plan to stay in this home?
2. If the loan rate is not fixed, how much can monthly payments increase and
how soon can those increases happen?
3. Do you expect your income to increase and how soon can those increases happen?
4. If the loan rate is not fixed, do you expect your income to increase or do
you expect to move before your payments rise?
5. If the loan rate is not fixed, will you be able to afford the mortgage when
the payments increase?
6. How much cash do you have available for upfront costs?
7. Are you paying down the loan balance each month or is it staying the same
or even increasing?
8. Will you have to pay a penalty if you refinance or if you sell the house?
9. What is your goal in buying the house? Are you considering a riskier mortgage
to buy a more expensive house than you can reasonably afford?
In addition to choosing a mortgage plan, you should consider which lender to
use. The following are questions to ask when interviewing mortgage brokers:
1. What is the annual percentage rate?
2. What interest rate will you commit to and how long will the lender guarantee
it?
3. What points and fees are associated with the loan?
4. Can you satisfy the time requirements in the purchase agreement?