Questions To Ask Your Loan Officer
- Initial Interest Rate?
- Actual Note Rate (ARM only)?
- Total number of points (including origination fee)?
- Annual Percentage Rate?
- Length of Loan:
- Index used (ARM only)?
- Today's Price of said Index (ARM only)?
- Margin Used?
- Is there a payment cap? Explain.
- Is there any potential deferred interest? Explain.
- Does the loan have "standard" positive amortization?
- How often is the rate subject to change? (ARM only)
- What is the per adjustment interest rate cap? (ARM only)
- What is the lifetime interest rate cap? (ARM only)
- Are the caps based off the note rate or the initial interest rate?
- How long is the rate quote guaranteed?
- Is the loan assumable?
- Is there a prepayment penalty?
- Is there a conversion feature?
- Is PMI/MIP coverage required?
- What is the initial PMI/MIP premium?
- What is the PMI/MIP renewal rate?
- What are my worst-case scenario monthly payments in 5 years?
- What are the estimated closing costs of this loan?
- What is the maximum seller contribution of closing costs?
- What fees do we pay at application?
- When are other fees paid?
- How much is my principal and interest payment?
- Does my loan require the escrow of taxes and insurance?
- What will be my total monthly loan payment including principal, interest, taxes, and insurances (PITI)?
