Further details on questions 5-10

6. Normally, your monthly payment will include funds for escrow. Your lender uses the funds you pay monthly into an "escrow account" to pay your property taxes, insurance, or other charges related to your home when they come due. If you want to pay these items yourself, you might be able to waive the escrow account requirement, but there may be a fee.

7. Some mortgage customers qualify for a low-documentation feature at no extra cost. If you do not qualify for the no cost feature and low doc is an available option, you will pay for that convenience in your rate and/or fees.

8. Most mortgages have no prepayment fees whatsoever. We do not currently provide mortgage that have penalty fees for prepayment. As you shop for a mortgage, be sure you fully understand whether there will be a prepay fee , how it will be calculated, and when it can be charged. You will also need to understand if there is a prepay fee only when you pay off the full balance withins a certain period, or any time you make a payment above and beyond your scheduled payment. If you currently have a mortgage and are about to refinance or purchase a new home, call your mortgage servicer to see if you will have to pay a prepay penalty or other fees, and to determine the amount.

9. late fees apply when you do not make a payment on time. Your lender may, or may not, give you a  "grace period" during which you can pay late without incurring a late fee.

10. Be sure you know what your interest rate is and the estimate of your closing costs (settlement charges), particularly when your shopping for the best mortgage package. A lower interest rate may be offered in exchange for higher settlement charges. In other cases, lower settlement charges may come with a higher interest rate.