Quote Originally Posted by caseysmom
its a good idea to have tax and insurance folded into your mortgage also. If you can get a 15 year mortgage you save a fortune on interest.
Oops, I have to disagree a bit on this opinion. If you get a 30 year mortgage your monthly payments will be less. You can always pay extra toward the principal any time you have the funds to do so. (Be sure there are no prepayment penalties in your mortgage contract). You can thereby get the benifits of paying off early and saving what you would have spent on interest just like you would have if you had a shorter mortgage, but you have the flexibility to do it as your circumstances allow.

As to taxes and insurance, I like to be in control of that myself. If I send in the check, I know these things have been paid and on time, rather than rely on the mortgage company to do it for me (and probably for a fee). With mortgages being bought and sold so many times there have been stories of an inordinant amount of time having to be spent trying to follow up and correct errors when someone hasn't done their duty. Sorry Edwina's Secretary, I'm siding with your husband on this one.

I guess I would add that you should shop around for a mortgage. Closing costs can vary quite a bit between banks. Be very inquisitive about each little detail and try to understand what each charge is for. Get it in writing if you can before making a decision which one to go for. The rate of interest is perhaps the easiest thing to understand.