Print this page or keep it open while you talk with at least two lenders about mortgage math. It goes with the 5 guides on Cash-Out Calculator. Sections are ordered by how often those guides discuss each topic, and each one quotes what the guides say about it. Write each lender's answer in its column, then compare. Nothing here is collected or sent; the boxes are for pen and paper.
Read before you call
One point from each guide on this site, so you can follow what each lender tells you.
- “Lenders cap the new loan at a maximum loan-to-value (LTV) set by the program.” From Cash-Out Refinance Calculator and Guide
- “Mortgage debt usually costs less than credit cards, and one payment can be easier to manage.” From Debt Consolidation With Home Equity: Pros and Cons
- “Maximum loan equals appraised value times the program's maximum loan-to-value.” From Loan-to-Value Limits on Cash-Out Refinances
- “Credit cards and personal loans are usually unsecured.” From Debt Consolidation With a Cash-Out: Questions to Ask First
- “The calculator multiplies your home value by the maximum loan-to-value limit you enter.” From Interpreting Your Cash-Out Calculator Results
Questions from this site's guides
| Question | Lender 1 | Lender 2 |
|---|---|---|
| What total interest will I pay under each option? | Lender 1 answer | Lender 2 answer |
| How will I avoid new balances? | Lender 1 answer | Lender 2 answer |
| Is my home at risk if income drops? | Lender 1 answer | Lender 2 answer |
| Would credit counseling help instead? | Lender 1 answer | Lender 2 answer |
| What are the closing costs? | Lender 1 answer | Lender 2 answer |
From the checklist on this site.
Payment questions
What the guides on this site say:
- “One payment, but your whole balance moves to the new rate.” From Cash-Out Refinance Calculator and Guide
- “HELOC: a revolving second lien, usually with a variable rate and a draw period followed by repayment.” From Cash-Out Refinance Calculator and Guide
- “Include closing costs, any change in your first mortgage terms and the total interest over the new term, not just the monthly payment change, when comparing a cash-out refinance with keeping your debts.” From Debt Consolidation With Home Equity: Pros and Cons
| Question | Lender 1 | Lender 2 |
|---|---|---|
| How does your monthly payment figure break down into principal, interest, taxes, insurance and mortgage insurance? | Lender 1 answer | Lender 2 answer |
| Which debts are you counting in my debt-to-income ratio? | Lender 1 answer | Lender 2 answer |
| What property tax and insurance amounts did you assume? | Lender 1 answer | Lender 2 answer |
Questions based on CFPB: What is a debt-to-income ratio?.
Your Loan Estimate
What the guides on this site say:
- “Estimated cash = (home value × maximum LTV) − current payoff − closing costs.” From Cash-Out Refinance Calculator and Guide
- “Cash available equals that maximum minus your payoff, closing costs and other liens being paid.” From Loan-to-Value Limits on Cash-Out Refinances
- “Enter your value, payoff, limit and costs to estimate available cash, then confirm with a Loan Estimate.” From Loan-to-Value Limits on Cash-Out Refinances
| Question | Lender 1 | Lender 2 |
|---|---|---|
| Can you send me an official Loan Estimate for this exact scenario? | Lender 1 answer | Lender 2 answer |
| Which fees in the Loan Costs section are your own charges, and which are third-party charges? | Lender 1 answer | Lender 2 answer |
| Which services on the Loan Estimate can I shop for myself? | Lender 1 answer | Lender 2 answer |
Questions based on CFPB: Loan Estimate explainer.
Points and lender credits
What the guides on this site say:
- “Closing costs, prepaid items and any points reduce the cash you receive.” From Interpreting Your Cash-Out Calculator Results
| Question | Lender 1 | Lender 2 |
|---|---|---|
| Does this quote include discount points or lender credits? | Lender 1 answer | Lender 2 answer |
| What would the same quote look like with no points and no credits? | Lender 1 answer | Lender 2 answer |
Questions based on CFPB: Discount points and lender credits.
Rate lock
| Question | Lender 1 | Lender 2 |
|---|---|---|
| Is my interest rate locked yet? If so, on what date does the lock expire? | Lender 1 answer | Lender 2 answer |
| What happens if closing is delayed past the lock date, and is there a cost to extend it? | Lender 1 answer | Lender 2 answer |
Questions based on CFPB: What's a rate lock?.
Loan features
| Question | Lender 1 | Lender 2 |
|---|---|---|
| Does this loan have a prepayment penalty? | Lender 1 answer | Lender 2 answer |
| Can the interest rate or monthly payment change after closing? If so, when and how? | Lender 1 answer | Lender 2 answer |
| Will I have an escrow account for property taxes and insurance? | Lender 1 answer | Lender 2 answer |
Questions based on CFPB: What is a prepayment penalty?.
Before you choose
What the guides on this site say:
- “Compare total interest on each option over the time you expect to repay.” From Debt Consolidation With Home Equity: Pros and Cons
- “Enter your own balances and terms to compare scenarios.” From Debt Consolidation With Home Equity: Pros and Cons
- “Use the calculator to see proceeds, then compare total cost over the period you expect to carry the debt.” From Debt Consolidation With a Cash-Out: Questions to Ask First
| Question | Lender 1 | Lender 2 |
|---|---|---|
| What are your individual and company NMLS IDs, so I can look them up? | Lender 1 answer | Lender 2 answer |
| Who will service the loan after closing? | Lender 1 answer | Lender 2 answer |
Questions based on NMLS Consumer Access.
This worksheet is general education. It does not ask for or store any personal information, and it is not an offer or a pre-approval. Compare written Loan Estimates, and verify every lender on NMLS Consumer Access.
Sources
- CFPB: What is a debt-to-income ratio?
- CFPB: Loan Estimate explainer
- CFPB: Discount points and lender credits
- CFPB: What's a rate lock?
- CFPB: What is a prepayment penalty?
- NMLS Consumer Access