10 Questions You Should Ask Your Lender.
Questions You Should Ask Your Lender . 1. What Types Of Mortgages Does Your Lender Offer? Most mortgage companies offer a wide array of loan options to fit various situations. Tow most common loan types are fixed-rate and adjustable-rate mortgages (ARMs). A fixed-rate mortgage interest rate and principal payment remain constant for the life of the loan. Since the interest never changes during the life of the loan, the borrower can always budget for a mortgage payment. (Keep in mind that Insurance and Taxes are adjustable annually if the borrower is escrow they may see a slight adjustment in their mortgage payments due to these annual adjustments). A fixed-rate mortgage is the best option especially if the borrower is planning to stay in the home for a while (5 years or more). With the ARMs, the interest rate and your payments are adjusted upon down periodically as the market index changes. The rate usually is adjusted between three months and five years. ARMs are usually