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ING Direct Mortgage explained
If a mortgage could make you richer, wouldn't you sign up? The Orange Mortgage™ from ING DIRECT will change the way you think about mortgages.

Orange Mortgage Can Make You Richer
With ING DIRECT you can expect great value in our products and service. We even make it easy for you to get an affordable mortgage – with no points, no application fees and One Low Closing Cost.

What You Need to Know
From closing costs to interest rates, the Orange Mortgage helps you save your money.
• With One Low Closing Cost of $895, you can save over $1,853 in points, application fees and other expenses, when compared to the national average, whether you're refinancing or buying a home.
• With our 5/1 Adjustable Rae Mortgage (ARM), for the first five years you can pay our current low rate of 6.25% (6.76%APR).
• During the first five years of your loan you can save more than $7,000 in interest compared to the typical 30-year fixed rate mortgage.

Why ING is Different
Other lenders might charge you points to get their best rate not to mention up to $2,000 in various fees. Not us. We don't believe in charging points or fees to get a great rate. We believe in offering rates based on how long most Americans keep their mortgage 5 to 7 years. Other places push those "long term fixed rate loans" that charge higher rates, even though mortgages won't last over 7 years!

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Answers To Your Questions
How can I get One Low Closing Cost of $895 with the orange mortgage™?
Closing and Title Agents and you will only pay $895 at closing, plus any taxes or interest due for the month.

Why should I use ING DIRECT for my home mortgage?
Plain and simple, the Orange Mortgage can save you a significant amount of money. With over $15 billion in home loans, ING DIRECT has already saved thousands of people lots of money. If that's not enough, ING DIRET, America's fourth largest savings bank, is part of ING, one of the world's largest financial services institutions with over $1 trillion in assets.

I've heard about "cash-out refinancing." What is it and should I do it?
"Cash-out refinancing" is when you refinance your mortgage and the new mortgage amount is more than your current mortgage balance. You're cashing out extra money, often to pay off higher-interest loans or to remodel your home. If you value of your home has gone up since you bought it or you've built some equity in your home, cash-out refinancing is something to consider.

A 7 minute application? Great. But how much paperwork is there?
We need less information from you on the application because we intend to keep your loan (not sell it like many lenders). Not only is our application shorter, most of our loans are considered low-documentation or _low doc" loans. In most cases we don't even require income verification--which leads to a much smaller pile of paper! Simple process, better experience.

How does an Adjustable Rate Mortgage (ARM) work?
ARMs usually have a term of 30 years with a fixed interest rate for an initial period of time, usually between 1 and 10 years. After this period, the rate can adjust up or down. So, a 5/1 ARM has a 5-year fixed-rate period and, from the 6th year on, the interest rate could adjust up or down every year.

When and how can rates change?
An ARM could adjust up or down after the fixed period. After the fixed period, rates are determined based on an index. Common indexes are the 1-year U.S. treasury Bill and LIBOR. The rate changes if the index changes.

The initial fixed rate can save you some serious money. Even when the rate adjusts, new rates can fall well below what you'd pay for a 30-year fixed-rate mortgage.

Even if rates move up, is my rate protected?
Yes, rate caps limit how high your rate can rise. Our caps are 2/2/6, Which means that in the first variable rate period, your rate can only increase 2%. After that, it can only increase 2% a year, never increasing more than 6% over the original rate for the life of the loan.

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A mortgage that's too good to be true? Not with ING Direct.
When you're shopping around for a mortgage, all offers aren't always what they seem. Purchasing your dream home should be a happy and fulfilling experience. So be sure to dig a little deeper when you hear "fee free" or "no closing costs". Ask questions. Read the fine print. Typically, banks will recoup these costs in other ways – added points, up-front deposits or surprise fees – so you end up paying much more in the end. At ING Direct, helping Customers make smart decisions about their finances is what they do best. And they guarantee there won't be any surprises with an ING Mortgage. And you can be assured of the best mortgage rates available.

Things you need to ask yourself when shopping for a mortgage :
1. Are the interest rates competitive?
2. Does the mortgage have any prepayment penalties?
3. Are the closing costs low? Are they guaranteed?
4. Will I have to pay private mortgage insurance (PMI)?
5. Do I have to pay points to get a better rate?
6. Is the application process quick and easy?
7. How long is the interest rate guaranteed for? Will it cost you fees?
8. Are there any application or origination fees?

Don't pay more than you should for a mortgage.
Most banks make their living on fees. Especially when it comes to mortgages. Lenders often throw a low rate out there to get you interested. And add other fees and points afterward - which can be substantial since each point will cost you 1% of the money you are borrowing. Those "extras" can add up to tens of thousands of dollars when you go to close the loan.

When you are shopping for a mortgage, ask up front what your total costs will be at closing. Make sure there won't be other charges added when you get to the closing table. ING Direct will help you make the most of your money. They've built a solid reputation on that promise.

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GLOSSARY OF COMMON MORTGAGE TERMS

Adjustable-rate loans – also known as variable-rate loans, usually offer a lower initial interest rate than fixed-rate loans. The interest rate fluctuates over the life of the loan based on market conditions, but the loan agreement generally sets maximum and minimum rates. When interest rates rise, generally so do your loan payments; and when interest rates fall, your monthly payments may be lowered.

Annual percentage rate (APR) – is the cost of credit expressed as a yearly rate. The APR includes the interest rate, points, broker fees, and certain other credit charges that the borrower is required to pay.

Conventional loans – are mortgage loans other than those insured or guaranteed by a government agency such as the FHA (Federal Housing Administration), the VA (Veterans Administration), or the Rural Development Services (formerly know as Farmers Home Administration, or FmHA).

Escrow – is the holding of money or documents by a neutral third party prior to closing. It can also be an account held by the lender (or servicer) into which a homeowner pays money for taxes and insurance.

Fixed-rate loans – generally have repayment terms of 15, 20, or 30 years. Both the interest rate and the monthly payments (for principal and interest) stay the same during the life of the loan.

Interest rate – is the cost of borrowing money expressed as a percentage rate. Interest rates can change because of market conditions.

Loan origination fees – are fees charged by the lender for processing the loan and are often expressed as a percentage of the loan amount.

Lock-in – refers to a written agreement guaranteeing a home buyer a specific interest rate on a home loan provided that the loan is closed within a certain period of time, such as 60 or 90 days. Often the agreement also specifies the number of points to be paid at closing.

Mortgage – is a document signed by a borrower when a home loan is made that gives the lender a right to take possession of the property if the borrower fails to pay off the loan.

Overages – are the difference between the lowest available price and any higher price that the home buyer agrees to pay for the loan. Loan officers and brokers are often allowed to keep some or all of this difference as extra compensation.

Points – are fees paid to the lender for the loan. One point equals 1 percent of the loan amount. Points are usually paid in cash at closing. In some cases, the money needed to pay points can be borrowed, but doing so will increase the loan amount and the total costs.

Private mortgage insurance (PMI) – protects the lender against a loss if a borrower defaults on the loan. It is usually required for loans in which the down payment is less than 20 percent of the sales price or, in a refinancing, when the amount financed is greater than 80 percent of the appraised value.

Thrift institution – is a general term for savings banks and savings and loan associations.

Transaction, settlement, or closing costs – may include application fees; title examination, abstract of title, title insurance, and property survey fees; fees for preparing deeds, mortgages, and settlement documents; attorneys' fees; recording fees; and notary, appraisal, and credit report fees. Under the Real Estate Settlement Procedures Act, the borrower receives a good faith estimate of closing costs at the time of application or within three days of application. The good faith estimate lists each expected cost either as an amount or a range.

Learn how the ING Direct Mortgage can save you money : Use the Mortgage Solutions Calculator above.

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ABOUT ING DIRECT MORTGAGE:
Having spent countless hours in the war that is Manhattan Real Estate we've compiled a lot of lessons learned that lead us to recommend The ING Mortgage. ING Direct® is a trusted brand with a no B.S. policy.

But we do suggest you shop thoroughly before deciding what's right for you. Shopping around for a home loan or mortgage will help you to get the best financing deal. A mortgage–whether it's a home purchase, a refinancing, or a home equity loan--is a product, just like a car, so the price and terms may be negotiable. You'll want to compare all the costs involved in obtaining a mortgage. Shopping, comparing, and negotiating may save you thousands of dollars.

Obtain Information from Several Lenders: Home loans are available from several types of lenders--thrift institutions, commercial banks, mortgage companies, and credit unions. Different lenders may quote you different prices, so you should contact several lenders to make sure you're getting the best price. You can also get a home loan through a mortgage broker. Brokers arrange transactions rather than lending money directly; in other words, they find a lender for you. A broker's access to several lenders can mean a wider selection of loan products and terms from which you can choose. Brokers will generally contact several lenders regarding your application, but they are not obligated to find the best deal for you unless they have contracted with you to act as your agent. Consequently, you should consider contacting more than one broker, just as you should with banks or thrift institutions.

Whether you are dealing with a lender or a broker may not always be clear. Some financial institutions operate as both lenders and brokers. And most brokers' advertisements do not use the word "broker." Therefore, be sure to ask whether a broker is involved. This information is important because brokers are usually paid a fee for their services that may be separate from and in addition to the lender's origination or other fees. A broker's compensation may be in the form of "points" paid at closing or as an add-on to your interest rate, or both. You should ask each broker you work with how he or she will be compensated so that you can compare the different fees. Be prepared to negotiate with the brokers as well as the lenders.

Obtain All Important Cost Information: Be sure to get information about mortgages from several lenders or brokers. Know how much of a down payment you can afford, and find out all the costs involved in the loan. Knowing just the amount of the monthly payment or the interest rate is not enough. Ask for information about the same loan amount, loan term, and type of loan so that you can compare the information. The following information is important to get from each lender and broker:

Rates: Ask each lender and broker for a list of its current mortgage interest rates and whether the rates being quoted are the lowest for that day or week.

Ask whether the rate is fixed or adjustable. Keep in mind that when interest rates for adjustable-rate loans go up, generally so does the monthly payment.

If the rate quoted is for an adjustable-rate loan, ask how your rate and loan payment will vary, including whether your loan payment will be reduced when rates go down.

Ask about the loan's annual percentage rate (APR). The APR takes into account not only the interest rate but also points, broker fees, and certain other credit charges that you may be required to pay, expressed as a yearly rate.

Points: Points are fees paid to the lender or broker for the loan and are often linked to the interest rate; usually the more points you pay, the lower the rate.

Ask for points to be quoted to you as a dollar amount--rather than just as the number of points--so that you will actually know how much you will have to pay.

Fees: A home loan often involves many fees, such as loan origination or underwriting fees, broker fees, and transaction, settlement, and closing costs. Every lender or broker should be able to give you an estimate of its fees. Many of these fees are negotiable. Some fees are paid when you apply for a loan (such as application and appraisal fees), and others are paid at closing. In some cases, you can borrow the money needed to pay these fees, but doing so will increase your loan amount and total costs. "No cost" loans are sometimes available, but they usually involve higher rates. Ask what each fee includes. Several items may be lumped into one fee.

Ask for an explanation of any fee you do not understand. Some common fees associated with a home loan closing are listed on the Mortgage Shopping Worksheet in this brochure.

Down Payments and Private Mortgage Insurance: Some lenders require 20 percent of the home's purchase price as a down payment. However, many lenders now offer loans that require less than 20 percent down--sometimes as little as 5 percent on conventional loans. If a 20 percent down payment is not made, lenders usually require the home buyer to purchase private mortgage insurance (PMI) to protect the lender in case the home buyer fails to pay. When government-assisted programs such as FHA (Federal Housing Administration), VA (Veterans Administration), or Rural Development Services are available, the down payment requirements may be substantially smaller.

Ask about the lender's requirements for a down payment, including what you need to do to verify that funds for your down payment are available.

Ask your lender about special programs it may offer.

If PMI is required for your loan, Ask what the total cost of the insurance will be.

Ask how much your monthly payment will be when including the PMI premium.

Ask how long you will be required to carry PMI.

Obtain the Best Deal That You Can: Once you know what each lender has to offer, negotiate for the best deal that you can. On any given day, lenders and brokers may offer different prices for the same loan terms to different consumers, even if those consumers have the same loan qualifications. The most likely reason for this difference in price is that loan officers and brokers are often allowed to keep some or all of this difference as extra compensation. Generally, the difference between the lowest available price for a loan product and any higher price that the borrower agrees to pay is an overage. When overages occur, they are built into the prices quoted to consumers. They can occur in both fixed and variable-rate loans and can be in the form of points, fees, or the interest rate. Whether quoted to you by a loan officer or a broker, the price of any loan may contain overages.

Have the lender or broker write down all the costs associated with the loan. Then ask if the lender or broker will waive or reduce one or more of its fees or agree to a lower rate or fewer points. You'll want to make sure that the lender or broker is not agreeing to lower one fee while raising another or to lower the rate while raising points. There's no harm in asking lenders or brokers if they can give better terms than the original ones they quoted or than those you have found elsewhere.

Once you are satisfied with the terms you have negotiated, you may want to obtain a written lock-in from the lender or broker. The lock-in should include the rate that you have agreed upon, the period the lock-in lasts, and the number of points to be paid. A fee may be charged for locking in the loan rate. This fee may be refundable at closing. Lock-ins can protect you from rate increases while your loan is being processed; if rates fall, however, you could end up with a less favorable rate. Should that happen, try to negotiate a compromise with the lender or broker.

Remember: Shop, Compare and Negotiate: When buying a home, remember to shop around, to compare costs and terms, and to negotiate for the best deal. Your local newspaper and the Internet are good places to start shopping for a loan. You can usually find information both on interest rates and on points for several lenders. Since rates and points can change daily, you'll want to check your newspaper often when shopping for a home loan. But the newspaper does not list the fees, so be sure to ask the lenders about them.

Fair Lending Is Required by Law: The Equal Credit Opportunity Act prohibits lenders from discriminating against credit applicants in any aspect of a credit transaction on the basis of race, color, religion, national origin, sex, marital status, age, whether all or part of the applicant's income comes from a public assistance program, or whether the applicant has in good faith exercised a right under the Consumer Credit Protection Act.

The Fair Housing Act prohibits discrimination in residential real estate transactions on the basis of race, color, religion, sex, handicap, familial status, or national origin. Under these laws, a consumer cannot be refused a loan based on these characteristics nor be charged more for a loan or offered less favorable terms based on such characteristics.

Credit Problems? Still Shop, Compare, and Negotiate: Don't assume that minor credit problems or difficulties stemming from unique circumstances, such as illness or temporary loss of income, will limit your loan choices to only high-cost lenders. If your credit report contains negative information that is accurate, but there are good reasons for trusting you to repay a loan, be sure to explain your situation to the lender or broker. If your credit problems cannot be explained, you will probably have to pay more than borrowers who have good credit histories. But don't assume that the only way to get credit is to pay a high price. Ask how your past credit history affects the price of your loan and what you would need to do to get a better price. Take the time to shop around and negotiate the best deal that you can.

Whether you have credit problems or not, it's a good idea to review your credit report before you apply for a loan. To order a copy of your credit report visit our News section.

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