Mortgage Follow-up

Some excellent questions have come in from my previous post:

is it a fixed rate for the life of the loan or does it float?

I’m only looking at fixed rate loans.

What are the fees (this includes fees that are rolled into the loan amount, not just out of pocket costs)?

This is a good question, I don’t know.

Will they sell your loan?

These guys say they won’t – they did say they would include a clause to not sell the loan to Citi. All of my mortgages to date have been sold.

What will servicing be like (I know you’ve had customer service trouble with mortgages in the past)?

I don’t know if there is really a way to find out before-hand.

Is there a pre-payment penalty?

I should have asked this – definitely don’t want a pre-payment penalty. I guess this could affect the rate.

Does their mortgage product have an ‘interest only’ option?

I’m not sure what this means…

If so, what is the yield based on? Published mortgage rates, Libor, MTA?

I’m not sure what this means either…

Where are the ‘points’ accounted for? Most lenders make money off the spread, and even those that promise no points account for their spread somewhere.

I clearly need to learn the jargon better. :)

It sounds like it’s worth spending the time to investigate refinancing. The comments are open for your thoughts/questions/etc.