The pocket mortgage guide: 60 of the most important questions and answers about your home loan

Terms of Use......Page 5
Want to learn more?......Page 6
Contents......Page 7
1. How much can I afford to pay?......Page 11
2. How do lenders decide how much I can borrow?......Page 13
3. What are the requirements for documenting income and assets?......Page 18
4. Can I improve my credit score by paying off delinquent credit cards?......Page 20
5. Will my credit score fall if I shop many loan providers?......Page 21
7. Is it difficult for the self-employed to qualify?......Page 23
8. What is a mortgage interest rate?......Page 25
10. What are points and why should I pay them?......Page 26
11. Are points tax deductible?......Page 27
13. If a house is appraised for more than the sale price, can the difference be counted as part of the down payment?......Page 28
14. Can the seller help with the down payment?......Page 29
15. What is the real cost of mortgage insurance?......Page 30
16. How can I avoid private mortgage insurance?......Page 32
18. Does title insurance protect me or the lender?......Page 34
20. Does it pay to shop around?......Page 35
21. Which is preferable, a 30-year term or a 15-year term?......Page 37
22. How are interest rates determined on an adjustable rate mortgage (ARM)?......Page 38
23. Can you have peace of mind with an ARM?......Page 40
24. How do balloon loans compare with ARMs?......Page 41
25. Should I get a biweekly mortgage to pay off the loan early?......Page 42
26. Who should take a Federal Housing Adminstration (FHA) loan?......Page 44
27. What is the price of a mortgage loan?......Page 46
28. What market niche are you in?......Page 48
29. Can I rely on price quotes in the printed media?......Page 50
30. Can I rely on price quotes received directly from a loan provider?......Page 51
31. How do I shop for the lowest-cost mortgage?......Page 54
33. What is an \"upfront mortgage lender\"?......Page 59
34. What is an \"upfront mortgage broker\"?......Page 62
35. Who is most likely to refer me to a good lender?......Page 63
36. What\'s the difference between a mortgage broker and a lender—and what\'s the advantage of using a broker?......Page 64
37. How do mortgage brokers make money?......Page 65
40. Are brokers more likely to take advantage of me than lenders?......Page 66
42. What is the downside of using a brand-name lender?......Page 67
43. What should I know about mortgage auction sites like Lendingtree.com?......Page 68
44. Should I respond to solicitations?......Page 72
45. When should you lock in an interest rate?......Page 73
46. When should you let your interest rate float?......Page 74
47. What happens if the lock expires before the loan closes?......Page 75
49. Does a lock commit the borrower as well as the lender?......Page 76
50. When does refinancing really pay?......Page 78
51. What should enter the refinance decision?......Page 79
52. Should I consolidate credit card debt in a second mortgage?......Page 82
53. Does it ever make sense to refinance at a higher rate?......Page 84
54. When is no-cost refinance a good deal?......Page 86
55. Should you refinance with your current lender?......Page 88
56. Why must I buy a new title insurance policy when I refinance?......Page 90
57. Is paying down my loan early a good investment?......Page 91
58. What should you do when you can\'t pay your mortgage?......Page 92
59. How do I cancel private mortgage insurance?......Page 94
60. Is there recourse against bad servicing?......Page 97
What is the monthly payment?......Page 101
Appendix B Finding Your Loan Balance......Page 152
Notes......Page 156