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What goes into your mortgage package?

Even if you have a pretty good idea about what type of mortgage you want, you'll still face a lot of options when it comes to choosing a particular package.

This section:

  • Introduces the most common options available to you

  • Describes how each choice affects the cost of your loan

  • Helps you decide what you need to pay attention to

In the following pages, we'll look at interest rates, points and rebates (what are they?) , your down payment, PMI and other costs and options.

If you missed it, the first part of this Mortgage Basics guide explained what a mortgage is, how interest rates are set, and how the differences between various mortgage types affect you.

Your mortgage package components.

Home buyers are often taken aback by all the options and variations that inevitably pop up. Suddenly you're faced with discount points, rebates, interest rates, annual percentage rates, closing fees, margins, taxes, insurance, and escrow fees, to name a few.

What do all these options mean?

and

What should you pay for and what shouldn't you?

This section answers these questions, and it begins to explain how you can save thousands of dollars over the life of your loan, and even how to afford a bigger or better home.

Later, the in-depth guide to choosing the right mortgage will walk you through the loan-selection process step by step, and help you select the best possible loan for you. Just don't click there yet, as the basics you'll learn here are most important!

Next: Interest rates, what you can expect

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