Helpful Links:
• Print this page
• Go back...

Questions to ask a Mortgage Banker:

1. Will this loan be sold on the secondary market or will it be placed in your portfolio? If it will be sold, how does this affect the servicing of my mortgage?
2. If private mortgage insurance is required, at what point will it be unnecessary so that it can be dropped? What is the procedure for doing that? Will the mortgage company notify me?
3. When does the servicing department pay the property taxes to insure the income tax deduction for that year? Will I be notified that it is paid?
4. How many months worth of property taxes and insurance are required for the reserve account? Does that account earn interest for me?
5. If obtaining an adjustable rate mortgage, describe how and when the loan can be converted to a fixed rate mortgage and what charges will be involved. Will another appraisal be required?
6. If obtaining an adjustable rate mortgage, what is the margin, index, and anniversary for adjusting the payments? What do all these terms mean?
7. When is the house payment due and when is the late fee incurred? What is the late fee? If I pay within the grace period but not on the exact due date, will my credit be affected?