Lender Comparison Chart
There are many variables in selecting a mortgage lender, so a systematic approach is needed. The following chart will help you ask lenders questions about the terms of mortgages they offer. If you don't understand a specific item, hover your mouse over the highlighted word or phrase to read a definition.
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Company name Phone number |
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Mortgage type: Mortgage terms (15 yr, 30 yr, ARM, etc.) |
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Interest rate quoted on ___/___/___ is: Number of points Can points be financed? Annual Percentage Rate (APR): |
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Interest rate lock upon application? Interest rate lock at approval? Lock-in costs? Effective how long? |
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Minimum down payment required without mortgage insurance? Minimum down payment required with mortgage insurance? Upfront costs? Monthly premiums? Can it be financed? |
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Is there a penalty for prepayment of principal? If yes, percent of outstanding principal: Will there be a penalty on a refinanced loan? Extra principal payments allowed? |
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After application, how many days processing till approval? After approval, how many days processing till closing? |
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Closing costs/fees: Application fee: Loan origination fee: Credit report fee: Appraisal fee: Title search/title insurance: Survey fee: Underwriting fee: Processing fee: Document preparation fee: Lender's attorney fee: Any other closing costs? Are no fee mortgages offered? |
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Questions for
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Lender #1 |
Lender #2 |
Lender #3 |
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What is the financial Index (Treasury, Cost of Funds, LIBOR, etc.)? What is the margin over the Index (e.g. Treasury + 2.75%)? |
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What is the initial interest rate? |
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What is the interest adjustment interval |
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What is the lifetime interest rate cap? What is the periodic interest rate cap? What is the payment cap? |
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Can the loan be converted to a fixed-rate? How is the new converted rate determined? Is there a conversion fee? |
