When does it make sense to pay points?
Points are a one-time fee that a borrower pays to lower the interest rate. Points are defined as a percentage of your loan amount, with one point being equal to one percent of your loan. For example, if you borrow $200,000, one point would be equal to $2,000. Paying one point will generally reduce your interest rate by approximately .25%.

An alternative to paying points is to receive a "credit" from the lender in exchange for a higher interest rate. Whereas points are added to your closing costs, a credit is used to reduce your closing costs. Once again, you can receive a credit of approximately one point by raising your interest rate .25%.

Whether you choose to pay points or receive a credit, this amount will be applied to your closing costs when your loan funds.

Is a NO POINT / NO FEE loan for me? 
This type of loan is designed to provide you with a rebate to cover your non-recurring closing costs. While these loans are most commonly associated with refinances, they can also apply to purchases.  NO POINT / NO FEE  loans will generally have a higher interest rate than loans in which you pay closing costs out of pocket. Consequently they are a good option for borrowers that plan to keep their mortgage for less than five years.
 
Should I choose a fixed rate or an ARM?
Fixed rate loans have a stated interest rate that does not change over the life of the loan, whereas the rates on adjustable rate loans are linked to an index and change as the index rate changes. Many mortgages, such as a 5-Year Fixed (30 Year), start as a fixed rate loan and then convert to an adjustable rate. Adjustable rate loans have more risk due to the possibility that the interest rate could increase. However, because you are assuming some of the risk the lender will generally reward you with a lower interest rate. These loans are best for borrowers who do not plan on keeping the loan for the full term.
 
Should I consider an interest-only loan option?
Interest-only loans are a good means of either increasing your home purchasing power or maximizing your flexibility to control cash flow. You can save significant amounts of cash for investment, savings, or other expenditures during the first ten years of your loan. This is also a solid strategy to maximize tax deductibility, with more funds available for paying down higher cost, nondeductible consumer debt. With these loans, the minimum payment required covers interest only-you decide how much or how little of the principal to repay each month. These loans should not be confused with negative amortization loans-with Interest-Only the principal balance NEVER increases.

Can I apply for a purchase loan before I find a property?
Yes! In fact if you are in the process of looking for a property we recommend that you apply for pre-approval. A pre-approval will review your financial situation to determine if you are likely to qualify based on the estimated loan amount and purchase price information that you provide in your application. A pre-approval gives you greater flexibility and leverage while you conduct your home search. Please note that we cannot lock your rate until you specify a property address.
 
I don't have much for a down payment. Can I still get a loan?
Yes, we offer loan products with as little as zero percent down.
 
What should I expect after I submit my loan application?
Once you submit the application, we will immediately begin our internal underwriting process.  In most cases, we will deliver your credit decision with 24 – 48 hours.

Do I have to have an impound account?
Impound accounts are required by lenders in most states, particularly when the amount you are borrowing represents a large percentage of the property's market value. When an impound account is required by the lender, you can often waive the use of an impound account for the hazard/homeowner's insurance and property taxes for a fee. However, you will always have to prepay your mortgage insurance payments (if any) into an impound account. In most states, once you submit a loan application we can help you determine if you will need an impound account.
• You will need a mortgage insurance impound account if your loan-to-value ratio (loan amount divided by property value) is greater than or equal to 80%.

What is my loan rate and when is it confirmed?
Interest rates fluctuate daily, so the rates available when you apply may be different than the rates available when you decide to lock your interest rate. By locking, you protect your selected rate for a stated period regardless of market fluctuation. Once your rate is locked, you will receive a lock confirmation stating the rate and terms that you have protected.
 
What is the difference between interest rate and APR?
The interest rate is the cost to borrow the lender's money. The APR (Annual Percentage Rate) represents the total cost of the mortgage over the life of the loan, including closing costs and lender points. Huc, please link "APR" to its description above. Thanks!
 
What is the difference between a HELOC and HELON?
While both are considered second mortgages, with a home equity loan all funds will be paid at closing. A home equity line of credit provides you with a credit line that you can borrow against at any time within a set time limit and up to a maximum amount.
 
How much can I borrow?
Your credit limit (also known as available equity) is determined by taking a percentage of your home's appraised or fair market value (to be determined when your application is received), and subtracting the balances of any outstanding mortgages on the property. If you qualify, the minimum home equity line is $10,000 and home equity fixed loan is $10,000.
 
Must I occupy the residence I am using as collateral?
You can use a residence that you do not occupy as collateral if the property's total existing mortgages and your requested home equity line add up to no more than 70% of an investment/rental property's appraised value and up to 80% is available for vacation homes.
 
Can I get a loan on my home if it is for sale?
If your home is currently for sale, it may be difficult to provide you with a loan on that home.  The general rule is that your home must be off the market for 180 days before a lender will provide you with a loan on that property.  However, we have a handful of portfolio lenders that will consider a refinance situation if the property is off the MLS for at least one day.

What percent of my home's appraised value can I borrow?
The amount that you can borrow varies based on a variety of factors. However, most borrowers can borrow at least 80% of their home's value (when all mortgages are totaled) and some can borrow even more.

Don't see your question here?  
We know each situation is unique and requires a specialized answer. Email us and we will respond with a personal response tailored to you - not some canned answer.

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