- Do I need a fixed rate or an adjustable rate?
Fixed-rate loans have interest rates that don’t change during the life of the loan. Adjustable-rate loans have rates that are linked to an index, Prime, and therefore can change over time. The initial interest rate on an ARM is set below the market rate on a comparable fixed-rate loan, and then the rate rises as time goes on
- Do I want an interest-only loan?
Interest-Only loans allow you flexibility on monthly payments when your cash flow does not permit a full loan payment. The minimum loan payment covers the interest portion of the loan only, and your principal only decreases if you pay above the interest. At the end of the interest-only term the borrower may enter an interest-only mortgage, pay the principal, or (with some lenders) convert the loan to a principal and interest payment loan at his/her option.
- Can I finance my rental property?
Yes. However, the interest rate will most likely be higher because there’s more risk for the bank when lending on a property that’s not the customer’s primary residence.
- Why should I refinance?
There a many reasons customers refinance their already existing mortgage loan. Some of them are:
- Get a better interest rate
- Decrease their monthly mortgage payment
- To switch from an adjustable rate to a fixed rate
- To change the term of the loan
- To refinance for a higher amount in order to pay off other debts
- How is the pre-approval decision made?
Your pre-approval decision is made when your information is submitted and reviewed by a licensed loan officer. We look at your standing debts, credit report, credit score, income and ability to repay the loan. Once you are pre-approved, you can start looking for homes with confidence and sellers will feel more comfortable working with you.
- Do I need a home appraisal?
Yes, we need to make sure the home you are purchasing is worth the value of the list price.
- How fast will I get my money?
On a purchase, your funds are available on the day you close your loan. On a refinance, funds are typically disbursed 3-5days after you sign your loan documents. This is because federal regulations require a 3-day rescission period during which time you have the right to cancel your loan outright.
- What are points?
Points are a one-time fee that a borrower pays to lower the interest rate. One point equals one percent of your loan amount. The more points you pay, the lower the interest rate on the loan and vice versa.
- What is the difference between interest rate and APR?
The interest rate is the cost to borrow the money disbursed in the loan. The APR reflects the effective cost of your loan on a yearly basis. It takes into account fees and costs such as interest, mortgage insurance, closing costs, discount points and origination fees.
- What is pre-paid interest?
When you close your loan, interest accrues in between the closing date and the last day of that calendar month. The accrued amount is then added to the total closing amount.
- What are the closing costs?
Closing costs include items such as title insurance, pre-paid interest, appraisal fees, attorney fees, and title insurance fees. The fees for these items can vary depending on factors of the loan and property.
- Which amounts are included in my monthly payments?
An easy way to remember what’s included in your mortgage payment is an acronym called PITI (Principal, Interest, Taxes, Insurance).
- What is PMI?
Private Mortgage Insurance (PMI) protects lenders against losses that can occur when a borrower defaults on a mortgage. PMI is required on conventional mortgage purchase transactions when the borrower has less than a 20% down payment. Once 20% equity is reached, PMI drops off the mortgage payment. You can use our mortgage calculator Toledo Ohio for more information on calculating PMI into your payments.
- Do I need a down payment?
The minimum down payment for an FHA loan is 3.5% of the purchase price. The minimum down payment for a conventional loan is 5%. However, we have loan programs available to help with down payment assistance for those who qualify.
- Can I lock my interest rate when purchasing a home?
Yes, we offer rate locks. The interest rate will differ depending on the length of the lock.
- What will my rate be?
Rates are based on a variety of factors such as the loan purpose, your credit history and ability to repay, the value of the collateral, and the loan amount, to name a few.
- How much money can I borrow?
The amount you’re able to borrow depends on your income and your debts.
To calculate your debt-to-income ratio, write down all of your monthly debts, then divide that amount by your monthly gross income.
- Do I need perfect credit to qualify?
There’s virtually no such thing as perfect credit but typically those with credit scores above 740 get the best rates on the market. However, we can service loans as low as 580 and we still have historically low interest rates.