Evaluating Mortgage Notes

Remember when you are looking at a mortgage note, you want to make sure you are checking this off of your list - are these present? If not figure out why or make a note about it. 

What is the original payment amount - do you see it listed?

This can vary based on the type of mortgage that has been created. Typically people use a 360 term mortgage or 30 years. However, there are varies types of mortgage due dates that can be agreed upon. All you need to know is just which is the type that has been chosen.

This is exactly what is sounds like, this is the amount that was agreed upon as payment on a monthly basis.

Most times this will be a fixed rate unless the terms state otherwise. This is the interest which will be collected by the lender for allowing funds to be used in a mortgage transaction.

This is the same as any late fee, it's for when you don't make your payment on the due date and the amount that will be added because of lack of payment.

A lot of lenders want to make sure they are collecting their APR on a loan for a period of time so that the investment is a valid transaction. You have to think of this one from the lender's side of the transaction. They could do other things with that money and invest it in other assets classes or investment vehicles. Because of that, a lot of times they will put Prepayment Penalties to recoup the losses that they may incur for having their total loan amount paid before a certain date.

Verify that you have this information and that it is correct. 

Verify that you have this information and that it is correct.