Ask These Questions when Working with a Mortgage Lender
Ask These Questions when Working with a Mortgage Lender
Free Online Articles Directory
Why Submit Articles?
Top Authors
Top Articles
FAQ
AB Answers
0 && $.browser.msie ) {
var ie_version = parseInt($.browser.version);
if(ie_version Hello Guest
Login
Register
Hello
My Home
Sign Out
Email
Password
Remember me?
Lost Password?
Home Page > Business > Ask These Questions when Working with a Mortgage Lender
Ask These Questions when Working with a Mortgage Lender
Posted: Jul 13, 2009 |Comments: 0
|
]]>
There are so many factors and things to remember when you are looking for a mortgage, that it is easy to get confused or forget something important. After all, most people only buy a home once or twice in their lifetimes. The process of getting a mortgage is not one that is familiar to most people, therefore, it is easy to lose sight of some of the details, which can cost big money later. If you are looking for a new mortgage, refer to the list below to help you remember all of the important questions to ask your lender.
What is the APR on this loan?
The easiest and most obvious question to ask your lender concerns the interest rate on the mortgage loan. Most people simply accept the quoted interest rate, which is not the true measure of the cost of the loan. Instead, most experts recommend that you ask for the APR, which includes all of the fees and costs of the loan.
What is included in the APR calculation?
When meeting with your lender, you want to also ask for an itemized list of everything that is included in calculating the APR. This will help to make accurate comparisons. While the APR is supposed to include all costs associated with taking out the mortgage, some lenders routinely include fees and costs that others might leave out.
Will the interest rate remain the same for the full life of the mortgage?
There are two main types of mortgages available. Fixed rate mortgages are mortgages in which the mortgage rate remains the same throughout the life of the mortgage. Variable rate mortgages are mortgages where the interest rate is subject to changes, depending on various factors.
If the mortgage is an adjustable rate mortgage, you should also ask the lender how the mortgage rate and adjustments are decided, when mortgage rates can change, and if there is a cap on mortgage rate adjustments to protect you from excessively large mortgage rate adjustments.
What will my monthly payment be?
Your monthly payment is arguably the most important part of the mortgage calculations for most borrowers. It is how most people will determine if a mortgage is affordable or out of reach. Keep in mind that lower monthly payments can mean that you will pay more for your mortgage over the life of the loan, but that is often a tradeoff for keeping a mortgage manageable.
How much will I have to pay at closing?
Closing costs can be either significant or incidental. In many cases, lenders are willing to include specific closing costs as part of the loan, which will reduce the amount of money you will have to hand over when you sign the loan papers. The tradeoff for that, however, is that you will be adding to the amount of money that you borrow, and paying interest on those closing costs.
How much of a down payment do you require?
It used to be traditional to require at least twenty percent of the cost of the house as a down payment in order to get a mortgage. Over the past several years, lenders have required less of a down payment, or have even agreed to no down payment loans in certain situations. Each lender has their own rules about down payment requirements, and many offer loans with different down payment requirements.
Keep in mind that the amount of down payment that you propose can substantially affect the interest rate you are offered, as well as the overall amount of the loan. In addition, if you make less than a twenty percent down payment, you will be required to carry private mortgage insurance until you have at least twenty percent equity into your home.
What will it cost if I pay off the loan early?
Many banks and lenders will assess a penalty if you pay off your loan early. If you think you may refinance for a lower interest rate later, or you may seek a shorter term loan when your financial circumstances improve, that early payment penalty may determine whether or not refinancing your loan makes sense.
How much will paying a point reduce my interest rate?
Paying points is a way to reduce the interest rate on your loan by paying the interest up front. Typically, one point costs one percent of the mortgage loan amount, and lowers the interest rate by one quarter percent, but each lender has their own calculations. The payment for points is due at closing, but by paying points, you lower your monthly payment. This only makes sense to do if you are planning to remain in the house, or in the current mortgage, long enough to realize the savings. A very general rule of thumb is that if you will be in the mortgage without refinancing for at least five years, then you will noticeably save money by paying points up front.
Retrieved from “http://www.articlesbase.com/business-articles/ask-these-questions-when-working-with-a-mortgage-lender-1032435.html”
(ArticlesBase SC #1032435)
Liked this article? Click here to publish it on your website or blog, it’s free and easy!
Allan Young -
About the Author:
Allan Young is a freelance writer who writes about financial products and specific services available from a mortgage lender .
]]>
Questions and Answers
Ask our experts your Business related questions here…200 Characters left
What are mortgage lenders looking for ?
What questions would be asked when adding an extra £5,000 onto an existing mortgage?
What are good questions to ask a girlfriend ?
Rate this Article
vote(s)
0 vote(s)
Feedback
RSS
Print
Email
Re-Publish
Article Tags:
mortgage lender, real estate, mortgage quote, adjustable rate mortgage, credit, line of credit, home equity, mortgage rate, mortgage insurance, home mortgage lender, mortgage loan, mortgage backed securities, mortgage fees, home loan, first time homebuyer
Latest Business Articles
More from Allan Young
Main Benefits Of Refinancing Your Mortgage
The biggest advantage to refinancing your mortgage in the short term, as your monthly payments will be lower; and in the long term, as you may not pay as much in interest.
By:
shawn thomasl
Businessl
Feb 17, 2009
Mortgage Loans in Pennsylvania
You’ve found a beautiful piece of property in one of the upscale areas of Pennsylvania and you’re wondering if you can get the best mortgage loan that’s available in the market.
By:
Brian Jenkinsl
Finance>
Mortgagel
Aug 12, 2008
What Causes Mortgage Rates to Change?
It is important to understand what it means to have an adjustable mortgage rate. The United States government’s Department of Treasury set the initial interest rate, but banks add to that rate, which is why people have different interest rates. An adjustable interest rate is one that changes according to the national rate, so it will fluctuate over time.
By:
Jason Nicholsl
Businessl
Aug 26, 2009
Reverse Mortgages: A Beginner’s Guide
Reverse mortgages, once an unusual method of financing, have moved into the mainstream as the boomer generation reaches retirement age. Widely touted by such venerable organizations as the AARP and often insured by the federal government, reverse mortgages have acquired a great deal of respectability.
By:
Lisa Parkerl
Businessl
Aug 26, 2009
Working With Your Lender to Get the Best Mortgage Rate
When it comes to defining each of the fees, make sure you understand what is covered by each one. Here are some aspects of the mortgage deal to discuss with the lender. This will allow you to come back to the table, show the lender what you have learned, and provide him or her with the opportunity to match or beat the best of those other offers.
By:
Lucinda Jonesl
Basic Requirements Needed to Receive a Mortgage
With the housing market in turmoil after the sub-prime mortgage crisis and the Federal bail-out of Freddie Mac and Fannie Mae, the basic requirements to receive a mortgage have tightened up. According to at least one real estate financier, to get a mortgage these days you”practically have to walk on water”.
By:
Brian Jenkinsl
Finance>
Mortgagel
Oct 21, 2008
lViews: 635
An Explanation of a Residential Mortgage
Buying a home is one of the most important decisions that most people will make in their lives. It’s likely to be the most expensive asset that most people will ever purchase. With the average home costing the equivalent of several years’ salary, it’s very rare that anyone can save enough money to pay for their residence with savings.
By:
Brian Jenkinsl
Finance>
Mortgagel
Oct 21, 2008
Why Now Could be a Great Time to Refinance Your Mortgage
It is no secret that, due to our current economy, interest rates are at the lowest level in years and, ways to stretch a dollar and save two are on everyone’s mind.This is a great time to refinance your mortgage for more reasons than simply low interest rates.One of the best reasons to refinance is usually always to lower your monthly payments.
By:
mike colel
Businessl
Jan 10, 2009
Benefits of Website Copywriting
To seek the attention of customers is the primary aim of every advertisement. However, this needs to be done in a manner so as to convey the message to the customer and persuade them to buy the product.
By:
nishtha shuklal
Businessl
Jan 17, 2011
Career Management: When You Can Do the Job, BUT You Aren’t a Cultural Fit
Company and group culture is a subtle thing to identify and even trickier to navigate if you aren’t a fit. What should you do if you don’t fit?
By:
Dorothy Tannahill-Moranl
Businessl
Jan 17, 2011
Choosing Insurance Companies In Orange County Based On More Than Price
When you are shopping for homeowners or auto insurance, it is important to consider more than just premiums. While the cost of insurance is extremely important in terms of affording the coverage you are binding, you must research the quality of insurance companies to ensure you are giving your money to the right insurer.
By:
Fern Baptistel
Businessl
Jan 17, 2011
Start-Up Versus Franchise – Which One is Better?
Starting your own business is both exciting and scary. Regardless of how well you do your homework or how knowledgeable you are, there is always a huge risk factor. Starting a business is a huge financial commitment and many people have been ruined financially because of starting bad businesses.
By:
John Burrowl
Businessl
Jan 16, 2011
Fulfillment houses – sharing your responsibility
It is very difficult to maintain a large manufacturing business while processing customer orders and hence giving this particular responsibility to fulfillment houses is a good idea.
By:
richard smithl
Businessl
Jan 16, 2011
Fulfillment House – Different Segments For Handling Different Functions
A fulfillment house is a platform, where the professionals conduct all the relevant business activities on behalf of the original business owners. Several fulfilment logistics companies are there, divided into different segments or departments, which offer their accurate services so that all the business-related activities could be conducted well.
By:
richard smithl
Businessl
Jan 16, 2011
A Peep into Stock Management and Order Fulfillment
The stock management and order fulfillment processes are discussed with their respective elementary details. A reading of this article will give a basic idea about both of them.
By:
richard smithl
Businessl
Jan 16, 2011
able to perform are websites attributed to contrasting companies, personal website sites so are owned by means of individuals who amount to it an inasmuch as forum belonging to speech and expression head start well advantage websites based on the government departments in addition to public services that provide invaluable guidance in addition to information about handicap variety attributed to topics.
By:
danielcorneloupl
Businessl
Jan 16, 2011
Ask These Questions when Working with a Mortgage Lender
There are so many factors and things to remember when you are looking for a mortgage, that it is easy to get confused or forget something important. The process of getting a mortgage is not one that is familiar to most people, therefore, it is easy to lose sight of some of the details, which can cost big money later. A very general rule of thumb is that if you will be in the mortgage without refinancing for at least five years, then you will noticeably save money by paying points up front.
By:
Allan Youngl
Businessl
Jul 13, 2009
Steps Involved in Refinancing a Home Mortgage
Over the past several years, many people have become involved with home mortgages that carry high rates and difficult terms. While there are many perks that make refinancing your home mortgage attractive, there are also costs associated with refinancing. The main reasons for refinancing a mortgage are to lower your monthly mortgage payment, or to reduce the overall amount you will end up paying for your house and loan.
By:
Allan Youngl
Businessl
Jul 13, 2009
Pros and Cons of Reverse Mortgage Loans
Reverse mortgage loans are being touted as the ideal solution for older homeowners who may need extra income during their retirement years. A reverse mortgage loan is a home loan that is paid out in monthly installments to the homeowner. The homeowner receives a monthly payment from the bank, which allows them to remain in their home and pay expenses. A reverse mortgage loan agreement can seem like a godsend, but there are both pros and cons to reverse mortgage loans.
By:
Allan Youngl
Businessl
Jul 10, 2009
Mortgage Protection Insurance: What you need to know
In today’s fragile economy, mortgage protection insurance makes more sense than ever. There are two kinds of mortgage protection insurance, commonly called mortgage protection life insurance and mortgage protection payment insurance. The amount that you pay for mortgage protection insurance will depend on the amount of the benefit. Like any other insurance, premiums and cost will vary widely based on many different factors.
By:
Allan Youngl
Finance>
Real Estatel
Jul 10, 2009
How Time Influences Mortgage Refinancing
The prime factors behind the drive to refinance are the rising rates of unemployment, new programs by Freddie and Fannie Mae, and actions made by the Federal Reserve. With the Federal Reserve constantly working to keep interest rates low, and programs available that encourage homeowners to refinance their mortgages, this may be the best time to refinance a high-priced mortgage. This may also be the best time to refinance a mortgage for a longer term.
By:
Allan Youngl
Finance>
Mortgagel
Jul 08, 2009
Five Steps Toward Securing the Best Home Mortgage
If you are in the process of buying a new home, then chances are that you are dealing with problems regarding finding a good mortgage. Choosing the wrong mortgage for your financial situation can saddle you with high payments, inflexible terms, and a higher cost for your home than you might have originally anticipated. With all of the permutations of mortgages available, finding the best one for you can be tricky and somewhat nerve-racking.
By:
Allan Youngl
Finance>
Mortgagel
Jul 08, 2009
Details about Refinancing a Second Mortgage
According to the Mortgage Bankers Association, 2009 will see the amount of mortgage refinances rise from about $850 billion to over $1.9 trillion. If you are making payments on a second mortgage, also referred to as a home equity loan, refinancing could save you a good deal of money on your loan repayment. There are many factors to consider when deciding whether or not to refinance a second mortgage.
By:
Allan Youngl
Businessl
Jul 03, 2009
Add new Comment
Your Name: *
Your Email:
Comment Body: *
Verification code:*
* Required fields
Submit
Your Articles Here
It’s Free and easy
Sign Up Today
Author Navigation
My Home
Publish Article
View/Edit Articles
View/Edit Q&A
Edit your Account
Manage Authors
Statistics Page
Personal RSS Builder
My Home
Edit your Account
Update Profile
View/Edit Q&A
Publish Article
Author Box
Allan Young has 7 articles online
Articles Categories
All Categories
Advertising
Arts & Entertainment
Automotive
Beauty
Business
Careers
Computers
Education
Finance
Food and Beverage
Health
Hobbies
Home and Family
Home Improvement
Internet
Law
Marketing
News and Society
Relationships
Self Improvement
Shopping
Spirituality
Sports and Fitness
Technology
Travel
Writing
Agriculture
Ask an Expert
Business Ideas
Business Opportunities
Corporate
Customer Service
Entrepreneurship
Ethics
Franchise
Fundraising
Home Business
Human Resources
Industrial
International Business
Leadership
Management
Negotiation
Networking
Non Profit Organizations
Online Business
Organizational
Outsourcing
Presentation
Project Management
Public Company
Public Relations
Sales
Six Sigma
Small Business
Strategic Planning
Team Building
Training
]]>
Need Help?
Contact Us
FAQ
Submit Articles
Editorial Guidelines
Blog
Site Links
Recent Articles
Top Authors
Top Articles
Find Articles
Site Map
Mobile Version
Webmasters
RSS Builder
RSS
Link to Us
Business Info
Advertising
Use of this web site constitutes acceptance of the Terms Of Use and Privacy Policy | User published content is licensed under a Creative Commons License.
Copyright © 2005-2011 Free Articles by ArticlesBase.com, All rights reserved.
Popularity: unranked [?]
No related posts.
Related posts brought to you by Yet Another Related Posts Plugin.
