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It's important to compare offers from several lenders before you select an
FHA-insured loan because the interest rate and terms can
vary. Here are some of the many questions you should ask about each loan:
1. What is the initial balance?
2. How much is the required down payment?
3. What is the term?
4. What is the initial interest rate?
5. How many points, if any, must be paid for that rate?
6. Is the rate locked? If so, when does the lock expire?
7. What is the initial monthly payment?
8. How much is the upfront mortgage insurance?
9. How much is the monthly mortgage insurance?
10. Is the mortgage insurance included in the monthly payment?
11. Does the payment include property taxes, homeowners insurance or other items?
12. Can the interest rate increase? If so, how often and by how much?
13. Can the loan balance increase? If so, when will the loan be recast?
14. Is there a prepayment penalty?
15. Is there a balloon payment? If so, how much and when is it due?
16. What are the closing costs?
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