2015年ESL之日常生活 01 Getting a Mortgage Loan（在线收听）

Getting a Mortgage Loan

Kiko: Figuring out how to fill out this mortgage loan application is like trying to read a foreign language. I don’t know what all these terms mean. 

Rafael: Let’s see if we can figure it out together. I think we want a fixed-rate mortgage, not an adjustable-rate mortgage. We want to lock in a good annual percentage rate and not worry about the rate going up. 

Kiko: All right, I think that’s what we want. We want the principal and interest payments to be predictable. 

Rafael: That’s right. 

Kiko: And what are points? 

Rafael: I think that has to do with fees for getting the loan. 

Kiko: It looks like we have to get an appraisal of the house we want to buy. 

Rafael: Yes, that’s standard, I think. 

Kiko: Do we have to pay for private mortgage insurance? 

Rafael: Not if we have a down payment of more than 20% of the price of the house. 

Kiko: Okay, so we don’t need to worry about that expense, but what about all these others? 

Rafael: Like what? 

Kiko: Like homeowners insurance and title insurance? 

Rafael: I’m not sure. 

Kiko: And what are balloon payments and prepayment penalties? 

Rafael: You got me. 

Kiko: And what’s included in the closing costs? 

Rafael: I’m really out of my depth here. 

Kiko: Me, too. What should we do now? 

Rafael: Continue to rent? 

Script by Dr. Lucy Tse