Here are some important topics to bring up with lenders to help determine which loan is right for you:

• Penalties. Can you pay off the loan early without prepayment penalties?

• Insurance and taxes. What are the provisions for homeowners insurance and property taxes? With some loans, lenders insist you pay these expenses directly to them on a proprated basis, while they hold the money in a separate escrow account. The insurance and tax bills come straight to the lender, who then pays them with your money.

• Loan limitations. Are there limitations on your right to borrow additional money from another source to facilitate your closing?

• Interest rates/mortgage balance. Will your mortgage balance increase if interest rates go up? This is called "negative amortization," and it's as bad as it sounds! It has to do with adjustable-rate mortgages that place limits on the increase in your monthly payment without capping the interest rate. The result? If interest rates go way up, your payments don't cover all the interest on your loan, and so your mortgage balance increases. Your balance is supposed to amortize—or gradually decrease over time. With negative amortization, the reverse is true.

• Assumable mortgage. Is the mortgage assumable? Meaning, when you sell your home, a buyer can take over what's left of your loan balance. Most assumable mortgages are adjustable-rate rather than fixed-rate mortgages.

• Second mortgage/home equity loan. Can you borrow additional money against the home with a second mortgage or a home equity loan at a later date?

• Selling limitations. Are there limitations on selling the property without paying off the loan?