FDIC Home - Federal Deposit Insurance Corporation
FDIC - 75 years
FDIC Home - Federal Deposit Insurance Corporation

 
Skip Site Summary Navigation   Home     Deposit Insurance     Consumer Protection     Industry Analysis     Regulations & Examinations     Asset Sales     News & Events     About FDIC  


Home > Consumer Protection > Consumer News & Information > FDIC Consumer News



FDIC Consumer News

Important Update: FDIC Insurance Coverage Increased in Late 2008

In the fall of 2008, Congress temporarily increased the basic FDIC insurance coverage limit from $100,000 to $250,000 through December 31, 2009. In addition, the FDIC simplified the rules for the calculation of deposit insurance coverage for revocable trust deposits, including an expanded definition of the "eligible beneficiaries" for additional insurance coverage. As a result, certain previously published information related to FDIC insurance may not reflect the current insurance coverage. For more information, go to www.fdic.gov/deposit/deposits/index.html or call toll-free 1-877-ASK-FDIC (1-877-275-3342) Monday through Friday, 8:00 a.m. to 8:00 p.m., Eastern Time. For the hearing-impaired, the number is 1-800-925-4618.

Special 10th Anniversary Edition - Fall 2003

Questions to Ask Before Signing a Contract on a Home Loan

What is the APR — the annual percentage rate? Is this the lowest rate you can offer?
The APR is the total cost of the loan, including interest charges and other fees, expressed as a yearly rate. Comparison shop among several lenders so you have a good sense of the costs you should be incurring, then negotiate the best possible terms.

What "points" and fees would I be charged?
Are any of these charges being added to the loan balance and increasing my payments? Each point equals one percent of the loan amount. Make sure you have a good understanding of all costs and conditions.

Does the loan include fees for credit protection that would cover the loan payment if I die, become ill or unemployed?
Most credit protection is optional. Determine if you already have adequate insurance or savings to cover these events. If you need additional coverage, consider your options and costs.

Is there a prepayment penalty if I pay off the loan early by refinancing or selling my house?
If so, is that stated in the documents? A loan with a prepayment penalty may have a lower interest rate than the same loan without a prepayment penalty, but the penalty can limit your flexibility to refinance or otherwise pay off the loan. Try to determine what is appropriate for your circumstances.

Do any of the loan terms differ from what was previously discussed or provided?
Review documents prior to signing them and make sure you understand why any changes in terms and conditions have been made and that you agree with them.

What will my monthly payment be?
What would cause the payment to change? Just because a lender says you qualify for a certain loan amount doesn't mean you are getting a loan that is affordable for you.

Is there a "balloon" payment?
If so, when is it due, and how much will I owe? A balloon payment is a large, lump-sum payment due at the end of the loan term.

Excerpted from "Questions to Ask Before Signing a Loan Contract," Summer 2002.
Previous StoryTable of ContentsNext Story

Last Updated 12/12/2003 communications@fdic.gov

Home    Contact Us    Search    Help    SiteMap    Forms
Freedom of Information Act (FOIA) Service Center    Website Policies    USA.gov
FDIC Office of Inspector General