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
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
Will the interest rate change?
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
Document preparation and recording
Are any of the application fees refundable if you dont
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 dont 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.