Questions for your Lender


  • Are both fixed-rate and adjustable mortgage loans available?
    What is the interest rate?
  • How long can I "lock-in" the financing at the current interest rate?
  • Is a float down lock available in case rates drop after I have locked in?
  • What are the other fees a lender may charge me in conjunction with my loan?
  • Are funds for a second mortgage available?

 On adjustable loans:

  • How often will the interest rate be adjusted?
  • Is there a maximum limit on each rate change?
  • How often will the monthly payment be adjusted?
  • Is there a ceiling on payment adjustments?
  • Can the term of the loan be extended?
  • What is the maximum rate that can be charged over the life of the loan?
  • Is there any potential for negative amortization?
  • Is there a pre-payment penalty clause?  (This involves extra charges for paying off the loan before maturity. About 80% of all loans in the United States are paid off early.)
  • What is the "grace" period? How late can a monthly payment be made before a late charge is assessed?
  • What will happen if a payment is missed?
  • If you sell your house, will the new buyer (if he/she qualifies) be able to assume your mortgage at the same interest rate?
  • Do you have to pay "points" to get your new mortgage? (Usually lenders charge points for the cost of giving you a mortgage loan. A "point" is 1% of the loan.)
  • Will the lender require mortgage insurance?
  • Is the loan serviced locally or is the servicing sold?
  • Ask for a written "good faith deposit".

Virginia Middleton, CIPS, E-Pro, SRES, CEC    
303-464-7952
info at MiddletonRealtyColorado.com

Middleton Realty Colorado