It Pays to Shop Around for a Mortgage- Learn Which Questions to Ask

It Pays to Shop Around...Mortgage Shopping Worksheet

	Lender 1	Lender 2
Name of Lender:	___	___
Name of Contact:	___	___
Date of Contact:	___	___
Mortgage Amount:	___	___

	mortgage 1	mortgage 2	mortgage 1	mortgage 2
Basic Information on the Loans Type of Mortgage: fixed rate, adjustable rate, conventional, FHA, other? If adjustable, see below	___	___	___	___
Minimum down payment required	___	___	___	___
Loan term (length of loan)	___	___	___	___
Contract interest rate	___	___	___	___
Annual percentage rate (APR)	___	___	___	___
Points (may be called loan discount points)	___	___	___	___
Monthly Private Mortgage Insurance (PMI) premiums	___	___	___	___
How long must you keep PMI?	___	___	___	___
Estimated monthly escrow for taxes and hazard insurance	___	___	___	___
Estimated monthly payment (Principal, Interest, Taxes, Insurance, PMI)	___	___	___	___
Fees Different institutions may have different names for some fees and may charge different fees. We have listed some typical fees you may see on loan documents. Application fee or Loan processing fee	___	___	___	___
Origination fee or Underwriting fee	___	___	___	___
Lender fee or Funding fee	___	___	___	___
Appraisal fee	___	___	___	___
Attorney fees	___	___	___	___
Document preparation and recording fees	___	___	___	___
Broker fees (may be quoted as points, origination fees, or interest rate add-on)	___	___	___	___
Credit report fee	___	___	___	___
Other fees	___	___	___	___
Other Costs at Closing/Settlement Title search/Title insurance For lender	___	___	___	___
For you	___	___	___	___
Estimated prepaid amounts for interest, taxes, hazard insurance, payments to escrow	___	___	___	___
State and local taxes, stamp taxes, transfer taxes	___	___	___	___
Flood determination	___	___	___	___
Prepaid Private Mortgage Insurance (PMI)	___	___	___	___
Surveys and home inspections	___	___	___	___
Total Fees and Other Closing/Settlement Cost Estimates	___	___	___	___

	Lender 1	Lender 2
Name of Lender:

	mortgage 1	mortgage 2	mortgage 1	mortgage 2
Other Questions and Considerations about the Loan Are any of the fees or costs waivable?	___	___	___	___
Prepayment penalties Is there a prepayment penalty?	___	___	___	___
If so, how much is it?	___	___	___	___
How long does the penalty period last? (for example, 3 years? 5 years?)	___	___	___	___
Are extra principal payments allowed?	___	___	___	___
Lock-ins Is the lock-in agreement in writing?	___	___	___	___
Is there a fee to lock-in?	___	___	___	___
When does the lock-in occur—at application, approval, or another time?	___	___	___	___
How long will the lock-in last?	___	___	___	___
If the rate drops before closing, can you lock-in at a lower rate?	___	___	___	___
If the loan is an adjustable rate mortgage: What is the initial rate?	___	___	___	___
What is the maximum the rate could be next year?	___	___	___	___
What are the rate and payment caps each year and over the life of the loan?	___	___	___	___
What is the frequency of rate change and of any changes to the monthly payment?	___	___	___	___
What is the index that the lender will use?	___	___	___	___
What margin will the lender add to the index?	___	___	___	___
Credit life insurance Does the monthly amount quoted to you include a charge for credit life insurance?	___	___	___	___
If so, does the lender require credit life insurance as a condition of the loan?	___	___	___	___
How much does the credit life insurance cost?	___	___	___	___
How much lower would your monthly payment be without the credit life insurance?	___	___	___	___
If the lender does not require credit life insurance, and you still want to buy it, what rates can you get from other insurance providers?	___	___	___	___

Courtesy of the Federal Reserve