Questions to Ask when Financing your Downtown San Diego Condo

July 6th, 2015

“Home finance has blossomed into an incredibly diverse and complicated industry. This is good and bad. There are at least a hundred ways to borrow the money for your Downtown San Diego Condo now. There are also dozens of ways for lenders to take advantage of you, from hidden charges to prepayment penalties and more.

Let your lender explain all the various home loans and home finance options available. However, when you finally decide on a product you like, ask as many of the following as are relevant to your loan. These are the questions that will protect you.

Home Finance – Questions For The Lender:

  • What is the interest rate?
  • What is the APR (annual percentage rate; includes fees, points and mortgage insurance)?
  • What is the initial rate (if it is an ARM – adjustable rate mortgage)?
  • What is the highest the rate can go to next year (ARM)?
  • What are the annual and lifetime caps on the interest rate and payment (ARM)?
  • How often is the rate or payment adjusted, and when (ARM)?
  • What index is the rate based on (ARM)?
  • What margin is added to the index (ARM – it might be the index plus 3%, for example)?
  • Is credit life insurance required (this pays off the loan if you die)?
  • How much would the payment be without it?
  • Can any of the fees or costs be waived?
  • Is there a prepayment penalty?
  • How much is the prepayment penalty?
  • For how long is the penalty in force?
  • Are extra principal payments allowed?
  • Is an interest rate lock-in available? (guarantees interest rate for a time)
  • Can I have the lock-in in writing?
  • Is the rate locked in at time of application or time of approval?
  • If rates drop, can I get a lower rate locked-in?
  • What inspections and/or surveys are required?
  • Is a title search and/or title insurance required, and what is the cost?
  • Can I get an estimate of prepaid amounts that I’ll have to pay at closing?
  • Are there “”points,”” and what will these cost (discount points to reduce interest rate)?
  • What state taxes, local taxes, stamp taxes and transfer taxes will I have to pay?
  • What other costs will there be?
  • Is there anything else I should know?

Lenders may not like getting two dozen questions thrown at them, but you have a right to ask before you agree to a loan. Did you know that a 1% higher interest rate on a $150,000 loan can cost you an extra $30,000 over the years? Home finance can be as important as a good price when it comes to saving money on your home.”

The Latest Headlines

Electra San Diego Market Updates

Electra – Market Updates Electra is Downtown San Diego’s tallest residential tower. Standing 43 stories tall, Electra is an easy building to spot in the Columbia District on the corner of Kettner......

read more

Downtown San Diego August 2013 Events

Female Pro Surfing Competition – Ford Supergirl Pro     Aug. 2 Come out and see the very best that female surfing has to offer at the Oceanside Pier! The Ford Supergirl Pro presented......

read more

Downtown San Diego March 2014 Events

Finish Chelsea’s Run Mar. 1 Chelsea King was an avid cross country runner who tragically lost her life while on a training run at Lake Hodges. This 5K run/walk is held in......

read more

Use a Home Equity Line of Credit to Update your Downtown San Diego Condo

“Money is one of the elements that easily comes and goes just as easily. If you have a Condo, you want to make sure that the flow of money coming and leaving......

read more

The Mills San Diego Market Updates

The Mills – Market Updates Located on Sixth and Seventh Avenues, North of Cedar Street, is The Mills. This one, two and three-bedroom loft community features 133 units on 6 floors. Three......

read more

Downtown San Diego May 2013 Events

May 4th San Diego SPCA Walk for Animals Walk with (or without) your dog to promote the humane treatment of animals. The event takes place from 7 a.m. until noon at Liberty......

read more

Celebrating Balboa Park’s Centennial – The San Diego Natural History Museum

In honor of Balboa Park’s Centennial Celebration, we will feature some of the park’s greatest attractions with a stop at the San Diego Natural History Museum.  Founded in 1874, the San Diego......

read more

Harbor Club San Diego Market Updates

Harbor Club – Market Updates The Harbor Club located at 100 Harbor Drive and 200 Harbor Drive, San Diego, 92101 in the Marina District adjacent to the heart of the historic Gaslamp......

read more

Alta San Diego Market Updates

Alta – Market Updates Featuring unique architecture from Australian development group Anka, contemporary loft styling and a supreme location, Alta, located in East Village, lends some of the most modern conveniences found......

read more

Porta d’Italia San Diego Market Updates

Porta d’Italia – Market Updates Porta d’Italia presents a unique opportunity to invest in a home away from home, or to make San Diego your permanent residence. Either way, you will be......

read more

Get Listings and Articles Delivered Straight to your inbox

  • This field is for validation purposes and should be left unchanged.