The Federal Reserve Bank of Boston's Consumer Resource for Mortgages and Foreclosures

• link to choosing a mortgage page
• link to refinancing page
• link to credit report and score page page
• link to facing foreclosure page
• link to publications and web sites page
• link to contact us page

Choosing a Mortgage

Lenders offer a variety of mortgage products, some carrying higher interest rates and costs than others. Often, these products are complex: they may have features such as

• introductory rates
  
  
• no money down or piggy back (so you actually walked out of the closing with two mortgages, one to cover what would have been your downpayment, probably at two different rates)
  
  
• variable payment options
  
  
• interest-only options
  
  
• prepayment penalties
  
  
• balloon payments

Shop around! It is important to comparison shop and understand the loan terms and associated benefits and risks before choosing a product. Some loans start out with lower interest rates than others. These rates, however, may simply be introductory or “teaser” rates to attract customers.

While most borrowers get loans with appropriate terms, there are many who could qualify for better terms that could save thousands of dollars in the long run.

 

Other Resources

Reverse Mortgages: Are They for You? (pdf)
From the U.S. Office of the Comptroller of the Currency (OCC)

Brochures from the Federal Reserve Bank of Boston

Know Before You Go... To Get a Mortgage Includes a glossary of mortgage terms.

You May Be Paying Too Much For Your Mortgage