A little research to compare your options for a mortgage, and a few questions in your artillery, will help you get the best one when you work with your mortgage lender.
Previously, we wrote about three questions to ask your mortgage lender before you secure your mortgage–we now have three more questions you should ask to give you even more knowledge and help to secure the best mortgage that you can get. When you are ready to get the best potential mortgage, here are three (more) questions you should ask your mortgage lender.
- What are the closing costs that go with this loan? Closing costs usually fall between 2 and 5 percent of the total loan. This range, when factored in with hundreds of thousands or millions of dollars, is big enough to make this question an important one.
- Is it an adjustable-rate or fixed-rate mortgage? An adjustable-rate mortgage locks your mortgage for a specific amount of time, and at the end may increase your monthly mortgage rate. A fixed mortgage keeps your interest rates and mortgage payment locked for the duration of the loan but is a bit more expensive than the adjustable-rate mortgage.
- What is the down payment that’s required? There exist many kinds of loan types, and not all of them require the same down payment. Make sure to ask what your down payment will be–if it’s less than 20 percent, ask if attaching private mortgage insurance (PMI) will be an additional requirement.
It’s best to put your pride aside and ask as many questions as you possibly can when it comes to something as vital to your life as your mortgage. This thing is going to be with you, potentially, for the next thirty years! Contact Dean Rathbun when it comes time to finding the perfect plan of action to buy your home. We are happy to help you.