Mortgages: Different Products for Different Needs

(continued)

and costs that are not included in the APR. Closing costs can vary from lender to lender.

Remember that you can negotiate the rates and terms of a mortgage. If you find a loan you like from one lender but you'd rather borrow from another bank, you can ask that bank about matching it. Your preferred may be able to offer some favorable terms or cost savings.

You may be able to save thousands of dollars in interest — depending on the amount of your loan and the interest rate — by working to pay off the mortgage in less than the standard 30 years. Even if you don't choose a mortgage with a shorter term (such as 15 or 20 years), you can get similar results by paying an additional $50 or $100 each month or one larger payment once a year. You can do this on your own by letting the mortgage company that you want to apply the extra funds to the principal amount of the loan.
You don’t need to sign up for a special program to do this. You can indicate that you want the extra money applied to the principal amount of the loan.

Source: FDIC