Fannie Mae Foundation: How to Buy a Home

Explain some of the important features of this dialogue to the learners. Point out that Ms. Lopez is the loan officer. Discuss with the learners the type of questions Bob is asking. Ask learners about the illustration: Why does Bob have a pen and a pad of paper? Explain to learners the importance of calling all lenders on the same day, because interest rates may change daily from one lender to the next.

Unit 3 : Lesson 2: How to shop for a loan

Requesting information about mortgage rates

two people talking on the phone

If you want to compare mortgage loans, you will have to ask the right questions. Be sure to ask about the interest rate and points on both fixed- and adjustable-rate mortgage loans.

Bob Williams is trying to compare the terms offered by different lenders so that he can find the mortgage loan that is right for him.

Ms. Lopez: Hello, Heartland Bank Mortgage Department. May I help you?

Bob Williams: Yes, I’d like some information on your mortgages. What are the rates on the 30-year fixed-rate mortgage?

Ms. Lopez: That’s 8 percent interest and 31/2 points.

Bob Williams: What are the rates on a 15-year fixed-rate mortgage?

Ms. Lopez: That’s 71/4 percent interest and 23/4 points.

Bob Williams: What are the rates on a one-year adjustable?

Ms. Lopez: That’s 61/2 percent and 11/4 points. Would you like to come in and fill out a loan application?

Bob Williams: Not right now, but thank you. Goodbye.

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