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

5 Essential Questions to Ask When Buying a Condo

There are so many things to consider when buying a condo, so it’s no wonder that you have a lot of questions running through your mind right now. Fortunately, with the right......

read more

Aria San Diego Market Updates

Aria – Market Updates Located in the highest point of Downtown San Diego in Cortez Hill, Aria was completed in 2008 with 137 units and offers a wonderful location away from the......

read more

The Evolution of Condo Design: Past, Present, and Future

Condominiums, also known as condos, have been around for decades. They offer a convenient and affordable housing option for individuals and families who want to own their own home without the maintenance......

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

Park View San Diego Market Updates

Park View – Market Updates Park View is a three story complex located at 1650 Eighth Avenue on Cortez Hill. Developed in 1980, this is one of older downtown San Diego developments.......

read more

Top 5 Benefits of Owning a Loft Condo

When it comes to urban living, loft condos seamlessly blend history, innovation, and style. Nestled within the beating heart of bustling cityscapes, these unique living spaces have captivated the imaginations of homeowners......

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

Laurel Bay San Diego Market Updates

Laurel Bay – Market Updates March 2015 Laurel Bay Market Update View the Laurel Bay Market Update January 15 Laurel Bay Market Update View the Laurel Bay Market Update November 2014 Laurel......

read more

What Are Loan Requirements for Condos?

Modern living has brought forth all the perks of a condo lifestyle. If you’re on the lookout for properties in San Diego, CA, Acqua Vista, or condos for sale in the region,......

read more

Interior Improvements for your Downtown San Diego Condo

These days it is simply not enough to just throw your Downtown San Diego Condo onto the local real estate market and hope for the best. Agreed, sometimes this does work, but......

read more

Get Listings and Articles Delivered Straight to your inbox

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