Questions for your Lender

• Are both fixed-rate and adjustable mortgage loans available?
  What is the interest rate?
• 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?

 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?
• 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/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?
• Ask for a written "good faith deposit".