Mortgage Shopping Worksheet Template (Page 2 of 2) in pdf

Lender 1

Lender 2

Mortgage 1

Mortgage 2

Mortgage 1

Mortgage 2

OTHER QUESTIONS & CONSIDERATIONS ABOUT LOAN

Can any of these fees or costs be waived?

Prepayment Penalties-

Is there a prepayment penalty?

If YES, how much is it?

How long does it last (3 yrs, 5 yrs)?

Are extra principal payments allowed?

Balloon Loans

Is it a Balloon Loan?

If YES, how much is the payment

When is it due?

Lock-Ins (Rate Locks)

Is there a lock-in agreement in writing?

Is there a fee to lock the rate?

When does the lock-in occur? - at application , approval or

another time

How long does it last?

When the rate drops before closing, can you lock-in at a lower

rate?

Variable or Adjustable Rate Loans

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 the rate change and any changes to

monthly payment?

What is the index the lender will use?

What margin will the lender add to the index?

Credit Life/Disability Insurance

Does the monthly amount quoted to you include a charge for

credit insurance?

If so, does the lender require it as a condition of the loan

How much does it cost?

How much lower would your monthly payment be without the

insurance?

If the lender does not require it and you still want it, what rates

can you get from other insurance companies?

Arbitration Clause

Is there an arbitration clause?

If YES, is there a cost to you?

Mortgage Terms

Annual Percentage Rate (APR):

Cost of the credit, which includes the interest and all

Appraisal:

A determination of the value of a home by a third party who is hired by the

other finance changes. If APR is more than .75 to 1 percentage point higher than the

lender to assure the home has enough value to pay off the loan should the borrower

interest rate you were quoted, there are significant fees being added to the loan.

default. It is typically paid for by the borrower.

Points: Fees paid to the lender to obtain the loan. One point is equal to 1% of the loan

Loan Origination Fees: Fees paid to the lender or broker for handling the paperwork in

amount. Points should be paid at the time of the loan.

arranging the loan. These are prepaid finance charges paid at the loan closing and are

Prepayment Penalty: Fees required to be paid by you if the loan is paid off early. Try

included in your APR calculation.

to avoid any prepayment penalty that lasts more than 3 years or is for more than 1-2%

Escrow: The holding of money or documents by a neutral third party prior to closing. It

of the loan amount. Certain high rate/high cost loans may not have prepayment

can also be an account held by the lender (or servicer) into which a homeowner pays

penalties under state and federal laws.

money for taxes and insurance.

Balloon Payment: Large payment due at the end of a loan. This happens when a

Interest Rate: The cost of borrowing money expressed as a percentage rate.

borrower has a low monthly payment covering only interest and a small portion of the

Lock-In: A written agreement guaranteeing a home buyer a specific interest rate on a

principal, leaving almost the whole loan amount due in one payment at the end. If you

home loan provided that the loan is closed within a certain period of time, such as 60 or

cannot make this payment, you could lose your home.

90 days. Often the agreement also specifies the number of points to be paid at closing.

Yield Spread Premium (YSP): Payment to the broker for selling a higher interest rate

Private Mortgage Insurance (PMI): Insurance that protects the lender against a loss if

loan than would otherwise be charged for that borrower. It must be disclosed to the

a borrower defaults on the loan. It is usually required for loans in which the down

borrower at the time of the loan and is generally acceptable if there are no other broker

payment is less than 20 percent of the sales price or, in a refinancing, when the amount

fees and this is how the broker is getting paid for his or her services.

financed is greater than 80 percent of the appraised value.

Mortgage Shopping Worksheet Template Page 2

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