When talking to a mortgage lender/banker prior to making an mortgage
application, you may find it helpful to ask the following
questions in order to make an informed decision.|
- Will this loan be sold on the secondary market or will it be placed in your portfolio?
- If private mortgage insurance (PMI) is required, at what point can it be eliminated?
- What is the procedure for eliminating private mortgage insurance?
- What is the up-front charge for private mortgage insurance and what is the renewal fee?
- When does the mortgage servicing department pay the property taxes to insure the income tax deduction for that year?
- How many months worth of property taxes and insurance are required for the reserve account?
- If obtaining an adjustable rate mortgage, describe how and when the loan can be converted to a fixed rate mortgage and what charges will be involved. Will another appraisal be required?
- If obtaining an adjustable rate mortgage, what is the margin, index, and anniversary for adjusting the payments?
- When is the house payment due and when is the late fee incurred? What is the late fee?