Easy Path To Low Mortgage Payments

In the next two minutes you are going to learn how to ask questions that will guarantee low mortgage payments. In other words, here is how to qualify your lender!

**Super Kate Tip: Shouldn't you know your credit score?
Free Credit Score - See yours at CreditReport.com!**

Scripts - Step One For Low Mortgage Payments

Kate's Refinance Script:

I am thinking about refinancing. I bought my house two years ago and have an adjustable rate mortgage. I owe $(fill in your amount) on my mortgage. One of my goals is to get a fixed rate mortgage. Do you have a moment to answer a few of my questions?

Kate's Home Buying Script:

I plan on buying a house in the next few months. I'm a first time home buyer. My personal information is ready. Do you have a few moments to spend with me?

Questions - Step Two For Low Mortgage Payments

Shopping for the best mortgage rate? Hoping for low mortgage payments? Here is how to ask questions and qualify your lender.

Initial Information

Start by noting this initial information...

• Current date
• Name of the mortgage company
• Phone number
• Contact name
• Email address
• Web address
• Mortgage company, bank, or broker

Tip: For getting your ducks in a row, use Kate's Mortgage Information Planner.

Fixed Rate Mortgage Questions

Since low mortgage payments are your goal, ask these questions regarding fixed rates...

• What type of fixed rate mortgage programs do you offer?
• Can the interest rate change at anytime during the term of the home loan? If so, how often?
• Do the mortgage payments remain fixed for the life of the home loan? If not, when and how often can they change?

Tip: Discover peace of mind with the best fixed rate mortgage.

Adjustable Rate Mortgage (ARM) Questions

Initial low mortgage payments end at some point during the term of the loan so ask these questions about adjustable rate mortgages...

• What types of adjustable rate mortgage programs do you offer?
• How long do the initial low mortgage payments last?
• Is there potential for negative amortization (deferred interest)? If so, how is it limited?
• How much and how often can my mortgage payments change?
• How much and how often can my interest rate increase?
• If interest rates decrease, is there a limit to how much my mortgage rate and monthly payment improve?
• What index is the adjustable rate mortgage based on?
• How much is the margin that will be added to the index?
• Can you please give me a worst-case scenario monthly payment?
• Is there an annual interest rate cap?
• In addition to an interest rate cap, is there a reset date at which time my payment can increase?
• Is there a lifetime interest rate cap?

Tip: Avoid surprises with your adjustable rate mortgage by understanding key documents.

Closing Costs Questions

Ask these questions about mortgage closing costs and good faith estimates...

• What are all of the closing costs and fees to getting a mortgage?
• When will you give me a Good Faith Estimate in writing?
• Do you charge an mortgage loan origination fee? How much?
• Do you also charge points? How much?
• Do you require an up-front mortgage application deposit? How much?
• Will my deposit be applied to fees on the Good Faith Estimate?
• How do you disclose your yield spread premiums?

Tip: How to reduce your mortgage closing costs.

Early Payoff Questions

Known for negatively impacting low mortgage payments, ask these questions about prepayment penalties...

• Do your home loans have prepayment penalties?
• What would it cost if I refinanced or sold my home before the penalty period was over?
• Can I make additional principal payments without penalty?

Tip: Go here for prepayment penalty help.

Locking Interest Rate Questions

How can you be sure of low mortgage payments if you don't ask these questions about locking your mortgage rate...

• How many days can I lock in my mortgage interest rate for free?
• Would my closing costs be higher if I locked for a longer period?
• How soon can I lock in my interest rate?
• How long does my mortgage interest rate lock-in agreement last?
• Are there up-front deposits to lock in the interest rate?
• When do you provide the written interest rate lock-in agreement?
• What happens if the mortgage rate lock-in agreement period expires?
• If mortgage interest rates go lower, could I float down to a lower interest rate?
• Can I relock my mortgage rate at a lower interest rate without penalty?

Tip: To make low mortgage payments your reality and avoid hidden fees, go to Lock Mortgage Rates - Avoid Hidden Fees

Cost and No Cost Refi Questions

Ask if low mortgage payments are a trade-off for a no cost refi package...

• Do you have a No Cost Refi?
• Does this mean there are really no home loan fees?
• Will my principal mortgage balance remain the same?
• Do you require an upfront deposit?
• Will there be any lender fees, loan fees, mortgage fees or 3rd party fees?
• How much higher is the interest rate for these home loans?
• Are there any drawbacks that I should know about?
• Are there restrictions to taking cash from my equity?
• Does it matter how I use the cash?

Tip: How to know if your mortgage refi is worth the cost.

Credit Report Questions

Another factor influencing low mortgage payments is the health of your credit. Ask these questions...

• Do you provide me a copy of my credit report with the FICO credit score?
• Is it possible to refinance a mortgage with bad credit?
• What is the effect of bad credit on home purchase loans?
• If I am turned down for a home loan, do I have other mortgage options with your company?

Tip: Learn my secret to improving your credit score.

Home Loan Program Questions

Not all mortgage programs are created equal. Here are some programs you may encounter while shopping for a mortgage...

• Pick a Pay Mortgage or Option Arm adjustable rates
• Interest only loans, a hybrid of fixed and adjustable rates
• Interest only mortgage loans featuring fixed rates
• No income verification mortgages
• Low to little or no down payment mortgages
• Private mortgage insurance options (PMI)
• FHA mortgage loans
• VA home loans (for veterans and active military)
• USDA rural development loan
• Reverse mortgage (income for seniors)
• Second mortgages, home equity loans and lines of credit
• Home improvement loans
• Buydown for low mortgage payments

Tip: Discover your inner homeowner savvy by asking Kate about mortgage programs.

Mortgage Processing Questions

Understanding company policies are important...

• Do you provide updates during the home loan process?
• Who will have the primary responsibility for processing my loan?
• Are you available to help me during normal business hours?
• How long does your mortgage office take to process home loans from application to closing?

Tip: Knowing what to ask is the first step to getting low mortgage payments. Use a separate list of these questions for each lender you qualify.

**Super Kate is wondering if you know YOUR credit score?**

Assistance A Click Away

Haven't found what you're looking for? Here's the solution! Go ahead and Ask Kate for answers.

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