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Home > Consumer Assistance & Information > Consumer Protection Topics > Mortgages > Putting Your Home on the Loan Line is a Risky Business

Putting Your Home on the Loan Line is a Risky Business

Comparison Shopping for a Home Equity Loan

Use this worksheet to help you shop for the best deal

Compare answers to these questions Lender A Lender B Lender C My Current Mortgage
What are the monthly payments?        
What is the Annual Percentage Rate (APR)?
the cost of credit expressed as a yearly rate; includes the interest rate, points, broker fees, and other credit charges
What is the interest rate?
the cost of borrowing money expressed as a
percentage rate
Will the interest rate change?        
How often?        
By how much?        
What will you have to pay in points?        
What will you have to pay in fees?        
Application or loan processing fee        
Origination or underwriting fee        
Lender or funding fee        
Appraisal fee        
Document preparation and recording fees        
Broker fees        
Other fees        
Are any of the application fees refundable if you don’t
get the loan?
How many years will you have to repay the loan?        
Is this an installment loan or a line of credit?        
Is there a balloon payment?        
What are the total closing costs?        
If you use a broker, how and how much will he or she be paid?        
What is the penalty for late or missed payments?        
What is the penalty if you pay off or refinance the loan early?        
Does the loan include optional credit insurance?
You don’t have to accept optional credit insurance to get your loan. If you want optional credit insurance, ask about paying for it monthly instead of financing the premiums as part of your loan.
Can you afford this loan?        

Last Updated 10/24/2003 Customer Assistance Online Form

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