Things to Consider When Applying for a Fixed Rate Loan
I am not a loan officer, or mortgage broker. But as a real estate agent, I have watched as people apply for fixed rate mortgages and noted a few things that should be part of your decision making process when considering a fixed rate mortgage. Here are a few:
- What is the interest rate?
- How long is the rate quote guaranteed?
- What number of points, including loan origination fees, will be charged?
- What is the annual percentage rate?
- What is the length of the mortgage (repayment term)?
- Is the loan assumable?
- Are there pre-payment penalties?
- Will you need Private Mortgage Insurance (PMI)?
- What will your monthly payment be?
- What does your monthly payment include? Escrows for taxes, insurance?
- What are the estimated closing costs for the loan?
- What fees are due at application? Are there other fees to be paid?