Buying a Home  > Mortgage Basics

Mortgage Factors To Consider

There are hundreds of mortgage programs being offered today. Many have hidden costs and unusual interpretations that aren't always apparent unless you carefully analyze the programs, and ask questions. When you review a mortgage program, weigh the following factors:

• Interest rate. 
  Percent of purchase price required for down payment. 
• Prepayment penalty for early payoff of loan. 
• Assumability by a subsequent buyer (and at what interest rate) 
• Origination fees, discount points and other costs. 
• Term of loan. 
• Processing time from approval to closing 
• Monthly income needed to qualify for loan. 
• Caps on adjustments for adjustable rate loans.