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Click on a
question below for your answer.
Who Are Mortgage
Brokers?
Why Use a Mortgage
Broker
Should I
Refinance?
Should I
Consolidate my Debt?
What are
Points?
What
Does
it Mean to Lock in a Rate?
What is an
ARM?
What is a
Mortgage?
What is a Reverse
Mortgage?
What is a
FICO score?
What are
Closing Costs?
What is PMI?
What is an
Appraisal?
What is
Title Insurance?
What is a
Loan Origination Fee?
Q:
Who Are Mortgage
Brokers?
TOP
A:
Mortgage Brokers are
full-time residential
real estate finance
professionals who are
experts at working
through the mortgage
lending process to save
you time. Mortgage
Brokers have access to
many lenders, and are
therefore able to
provide competitive,
up-to-date loan rates.
They have the knowledge
on current trends and
terms in the industry,
which make them
affordable consultants
who will save you time
and money.
Q:
Why Use a Mortgage
Broker?
TOP
A: Our
focus is to help you
achieve the "American
Dream" through proper
financing of your home
purchase or refinance.
Since we have a vested
interest in satisfying
your needs, we will find
the best lender from our
many sources to provide
you with a loan that
meets your individual
needs. We have
extensive knowledge of
the many loan programs
available and will take
the time to fit your
needs to the best loan.
Q:
Should I
Refinance?
TOP
A: There
are two main benefits to
refinancing your home. First, it
can save you money on your
monthly payments and cut years
off the remaining term of your
loan, saving thousands in
interest payments. The longer
the remaining term on your loan,
the more interest you have to
pay. Even if rates are just a
half point lower than your
current mortgage, refinancing
can save you a lot of cash.
Also, you
can leverage the equity in your
house and get immediate cash in
your pocket. You can use that
money towards a new car, that
vacation you've been talking
about or home improvements to
increase your home's value.
Refinance your mortgage today
and free up the money you need
to do the things you want.
Q:
Should I
Consolidate my Debt?
TOP
A:
Consolidating your credit card,
auto loan and student loan
payments into one low rate and
payment through your home loan
can be a smart financial
decision. You may be able to
save hundreds or even thousands
of dollars in interest by taking
advantage of consolidating into
one low mortgage rate.
Q:
What are
Points?
TOP
A: Points
are fees added on to a loan and
are paid when the loan closes.
One point equals one percent of
the loan amount. There is an
inverse relationship between the
interest rate and the number of
points paid. In other words, you
may be able to lower your
monthly mortgage payments by
paying more money up front
through points.
Q:
What
Does it Mean to Lock in a
Rate?
TOP
A: When you
lock in a rate, you are asking
the lender to guarantee the
current interest rate for a
certain period of time. By
locking the rate you are
guaranteed that rate for your
loan regardless of whether or
not the rates go up the next day
or not.
Q:
What is
an ARM?
TOP
A: ARM
stands for Adjustable Rate
Mortgage. With this type of
loan, your interest rate is not
fixed so it will change
periodically. An ARM may be a
good option when you are
planning on selling your home in
a few years as it may provide
the lowest initial monthly
payments. If you intend to keep
your home for a long period of
time, an ARM may not be the best
option as your interest rate may
increase.
Q:
What is
a Mortgage?
TOP
A: A
mortgage is a legal document you
sign pledging your property as
security for a loan that the
lender makes to you. A mortgage
is executed along with the note,
which is your obligation to
repay the loan on a timely
basis. At closing, the borrower
signs both the note and the
mortgage deed of trust. Without
a mortgage the lender would not
have the ability to foreclose
against the property in the
event of default.
Q:
What is
a Reverse Mortgage?
TOP
A:
A home loan that
advances cash from loan
proceeds to a homeowner,
requires no monthly
payment, and is capped
by the appraised value
of the home at loan
maturity.
Q:
What is
a FICO Score?
TOP
A: A FICO
score is a credit score
developed by Fair Isaacs Company
as an aid to help determine a
consumers overall credit quality
and ability to repay a loan.
Q:
What are
Closing Costs?
TOP
A: Closing
costs are the costs charged by
the lender and other third party
vendors in order to complete the
loan transaction.
Q:
What is PMI?
TOP
A: PMI
stands for Private Mortgage
Insurance and is used to protect
the lender in the event of
borrower default. Generally, the
borrower is required to pay a
fee for mortgage insurance when
the down payment is less than
20%.
Q:
What is
an Appraisal?
TOP
A: An
appraisal is a report created by
a qualified appraiser that is an
estimate of the value of the
property being financed.
Q:
What is
Title Insurance?
TOP
A: There
are two types of title insurance
policies. A lender's policy
insures that the lender holds an
unencumbered first lien
position. This coverage is
required when obtaining a
mortgage loan. An owner's policy
is a separate policy that
ensures that the borrowers hold
a marketable title to the
subject property. An owner's
policy would ensure against
ownership claims against the
property that were not
identified during the title
search.
Q:
What is
a Loan Origination Fee?
TOP
A: This is the fee that covers
the lender's costs for
processing your loan. It is
usually applied as a percentage
of the loan amount.
