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Costs and Options of a Mortgage

Items to Consider when Choosing a Mortgage.

Do your research before you start shopping for a mortgage. Learn what you need to know and what questions to ask.

If you consider the following items when shopping, it will help to make sure you get the mortgage that’s best for you:

  • Figure out what features you need and want in a mortgage.
    • Open term
    • Closed term
    • Convertable term
    • Fixed rate
    • Variable rate
    • Cash-back
    • Home equity line of credit
  • Determine the length of time you want to be tied to the mortgage.
    • Long-term
    • Short-term
    • Amortization period
  • Understand your rights and options when you apply for a mortgage.
    • Privacy and the use of your information
    • Rate holds
    • Pre-payment options
    • Cost to break a mortgage contract

Financial Items to Consider during the Mortgage Process

Before you decide to purchase a home, consider the following costs and responsibilities involved:

  • Set your price range.
  • Determine how much money you have available for a down payment.
  • Know your credit score and history.
  • Be able to prove your income.
  • Know all the costs involved with owning a home.
    • Closing costs - Up-front costs that must be paid when a home is purchased. These costs include:
      • Appraisal fee
      • Legal fees
      • Title insurance
      • Land registration fees
      • Prepaid property taxes and/or utility bills
      • Survey or Certificate of Location cost
      • Water tests
      • Septic tank tests (if applicable)
    • Upfront costs
      • Moving costs
      • Storage costs
      • Real estate costs for selling a home (if applicable)
      • Redirecting mail
      • Utility hook-up fees
    • Ongoing costs
      • Mortgage payments
      • Property taxes
      • Utilities
      • Property insurance
      • Renovation costs
      • Landscaping and maintenance costs
      • Repairs