| Mortgage
Shopping Worksheet
Section
A
Use Section A to record basic information about loan options. Be
sure to compare the APRs of loans from different lenders. In a mortgage,
the APR includes any points charged. A point is the amount equal
to 1% of the loan balance. It is paid to the broker or lender for
processing your loan.
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Lender
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Lender
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| Name
of Lender: |
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| Name
of Contact: |
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| Date
of Contact: |
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| Mortgage
Amount: |
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| A.
Basic Information about the Loan |
Mortgage
1 |
Mortgage
2 |
Mortgage
1 |
Mortgage
2 |
Type of
Loan:Fixed rate, variable rate, conventional, FHA, other?
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| Minimum
Down Payment Requirement |
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Loan term
(length of loan)
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Contract
interest rate
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Annual
Percentage Rate
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| Points
(may be called discount points) |
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| Monthly
PMI Payments |
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| How long
must you keep PMI? |
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| Estimated
Monthly Payment?(Principal, Interest, Taxes, Insurances, PMI) |
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| Estimated
Monthly Escrow for Taxes and Insurance? |
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Section
B
Use Section B to compare information about fees. The fees listed
are some of the standard fees that are included in the mortgage
loan process.
B.
Fees—different banks have different names for
similar fees. Listed below are some of the typical fees you
may see on loan docs.
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| Application
or loan processing fee |
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| Origination
or underwriting fee |
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| Lender
fee or funding fee |
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| Appraisal
fee |
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| Attorney
fees |
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| Document
preparation and recording fees |
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| Broker
fees (may be quoted as points, origination fees, or interest
rate add-on) |
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| Credit
report fee |
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| Other
fee: (list)_________________________ |
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Section
C
Use Section C to compare closing costs. The closing costs that you
end up paying should be similar or less than the estimate you are
given when you apply for the loan.
C.
Other Costs at Closing/ Settlement
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Title
Search/Title Insurance
-For lender
-For you |
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| Estimated
prepaid amounts for interest, taxes, hazard insurance, payments
for escrow |
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State
and local taxes, stamp taxes, transfer taxes
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| Flood
determination |
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| Prepaid
PMI |
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| Surveys
and home inspections |
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Section
D
Use Section D to compare the total of the fees from Sections A,
B, and C. Remember, when you shop for a mortgage, the lenders are
giving you estimates, so the information may change.
D.
Total Fees and Other Closing/ Settlement Cost Estimates
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__________________________
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| __________________________ |
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Section
E
Use Section E to record information about other potential costs.
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Lender
1 |
Lender
2 |
| Name
of Lender: |
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| E.
Other Questions and Considerations About the Loan |
Mortgage1 |
Mortgage
2 |
Mortgage
1 |
Mortgage
2 |
| Is
there a prepayment penalty? |
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If
so, how much is it?
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| How
long does the penalty period last? (3 years? 5 years?) |
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| Are
extra principal payments allowed? |
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| Lock-ins |
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| Is
the lock-in agreement in writing? |
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Is
there a fee to lock-in?
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| When
does the lock-in occur—at application, approval, or another
time? |
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| How
long will the lock-in last? |
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| When
the rate drops before closing, can you lock-in at a lower rate? |
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If
the loan is an adjustable mortgage:
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| What
is the initial rate? |
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| What
is the maximum the rate could be next year? |
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| What
are the rate and payment caps each year and over the life of
the loan? |
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If
the loan is an adjustable mortgage:
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| What
is the initial rate? |
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| What
is the maximum the rate could be next year? |
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| What
are the rate and payment caps each year and over the life of
the loan? |
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What
is the frequency of rate change and any changes to the monthly
payment?
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| What
is the index the lender will use? |
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| What
margin will the lender add to the index? |
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| Credit
life insurance |
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| Does
the monthly amount quoted to you include a charge for life insurance? |
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If so, does the lender require credit life insurance as a condition
of the loan? |
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| How
much lower would your monthly payment be without the credit
life insurance? |
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| 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? |
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Terms
- Pre-payment
penalties: Some mortgages charge a fee if you pay the loan
off early.
- Lock-in:
Allows the borrower to guarantee that the interest rate will not
increase or decrease before the loan closes.
- Adjustable
rate loans: Require
additional disclosers, such as the maximum amount that the interest
rate can increase or decrease each month, each year, or during
the life of the loan. The lender must also disclose the index
that will be used to determine rate changes. The index is a base
interest rate that is used to calculate a variable rate loan's
interest rate. The rate you will pay on a variable rate loan is
usually a set percentage above the index. The index is also called
the base rate.
- Credit
life insurance:
Pays off the mortgage if anything happens to the borrower. The
lender has to disclose all of the details of credit life insurance
if you choose this option.
* Some of the
information in this worksheet is provided in the initial disclosure
that your lender gives you when you apply for a mortgage. For example,
the Truth in Lending Act requires the lender to disclose estimates
of how much the loan will cost. The Real Estate Settlement Procedures
Act requires the lender or broker to give you an estimate of the
fees so you have an idea of how much the loan will cost. These disclosures
are not required until you actually apply, however. To compare the
terms of the loan before you apply, ask the lender for the information
on the worksheet.
For a blank
copy of this worksheet, check the “Your Own Home” tip
sheet.
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