Page 14 - Book6E

Today there are three kinds of people: the have’s, the have-not’s, and the have-not-paid- for-what-they-have’s.
— Earl Wilson
6
more important than ever to be sure you understand the terms of the loan you are signing for and the impact it may have down the road on your ownership. The type of loan you decide on and the institution you borrow from will influence your settlement costs and the monthly
cost of your loan. There are many types of lenders and types of loans you can choose from. We will discuss some, but not all of them here.
Mortgage Brokers
Mortgage Brokers (e.g., Lending Tree) are companies that offer to find you a lender who is willing to make you a loan. They may be paid by the lender, you, or both.
You should ask the mortgage broker who is paying the fees. If a mort- gage broker operates as an independent business, it is not acting as your representative.
Government Programs
You may be eligible for a loan insured through the Federal Housing Administration (FHA) or the Department of Veterans Affairs or other similar programs operated by cities or states. These programs are worth looking into as they typically require a smaller down payment for a better interest rate.
Fixed-rate Mortgage
In a fixed rate mortgage (FRM), the interest rate you are charged stays the same for the length of the loan. This ensures that your monthly loan payment also stays the same. This monthly payment does not include additional costs such as property taxes and property insurance. If these costs are collected for you by the lender and held in escrow, they may cause your monthly payment to change over time, but the actual loan payment will remain the same. Your monthly payment is
Mortgage Loans