Questions to Ask When Shopping for a Loan
- Is the loan fixed or adjustable?
- If the loan is fixed, what is the fixed-rate period?
- If the loan is adjustable, what is the fully indexed rate, the index and the margin? (Index + Margin = Fully Indexed Rate)
- If the loan is a fixed-rate loan, what is the interest rate?
- What will my monthly loan payments be?
- Will I be required to have mortgage insurance with this loan?
- Does the loan have an interest-only payment option?
- Does the loan have a pre-payment charge?
- What are the closing costs?
- Are there any points or is there an origination fee?