Will it take long to find out
about a loan?
Not at all, within 5 minutes you can provide all the
information that we need to get your loan pre-approved. Back to Top
I already have a 2nd mortgage,
can I refinance?
In most cases, you can not only refinance your existing
2nd mortgage to consolidate additional debt or get cash
out, but you will more than likely qualify for a lower
rate! Back to Top
Will the interest on my loan
be tax deductible?
Yes, in most cases the interest you pay on home financing
is tax deductible. Some restrictions apply to high-loan-to-value
and investment property transactions. Please consult
with your tax advisor for confirmation. Back to Top
Do I have to go to your office
to sign the documents?
Not at all! We go to you, wherever it's convenient.
Whether it's at home, work, or on the weekends. Or we
can overnight you the paperwork! Back to Top
What is an escrow account?
When borrowers make their monthly mortgage payments,
they generally also pay one-twelfth of the anticipated
annual amount needed to pay taxes and insurance premiums.
These additional funds are deposited into an escrow
account (also known as an impound account), until the
lender pays the taxes and insurance premiums as they
come due. The borrower benefits for budgeting reasons
because the costs are spread through the year rather
than a lump sum. This method allows the lender greater
control in avoiding tax delinquencies or lapses of hazard
insurance coverage on the property. Mortgage documents
often stipulate lenders to establish an escrow account.
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Can I pay my own taxes and insurance?
When a loan is originated, the mortgage documents specify
the escrow conditions. Lenders are required to establish
escrow accounts only for FHA insured mortgages. With
conventional loans you typically have the option to
establish an impound account or make property taxes
on your own. We will present you with the options at
the time of financing. Choosing an impound account is
often a convenient way to budget for property taxes
and insurance. Back to Top
When will my loan close once
I have applied?
Your lender will begin to work on verifying all the
information you've provided. This process generally
takes from 1 to 6 weeks, depending on the type of mortgage
you choose. 1st mortgages and 2nd mortgages can vary
quite a bit. You can request that your loan consultant
give you a range of time based on your loan program.
Part of your loan closing in a timely manner is a reflection
on your willingness to provide our staff the appropriate
documentation needed through the close of the loan.
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How can I find out if a second
mortgage will benefit me?
Within a few minutes of your initial conversation with
one of our loan consultants we can inform you whether
or not a 2nd mortgage will benefit you. Most second
mortgages are used for consolidating debt, home-improvement,
or cash out for any reason. 2nd mortgages are a great
way to consolidate high interest credit card debt and
they usually create a much lower payment than what you
are paying now, and in most cases the interest may be
tax deductible. Back to Top
On a 2nd Mortgage how much money
can I get?
Up to $200,000 or more if you have equity and up to
$75,000 even if you have no equity. Your loan consultant
will provide you with the best possible loan program
tailored to your needs. Back to Top
What if my credit score isn't
perfect?
That's fine, our staff is prepared to offer alternative
loan programs to fit your needs. Back to Top
Why is the Annual Percentage
Rate (APR) on the Truth in Lending Disclosure higher
than the rate shown on my note, which is the rate I
thought I chose?
All lenders are required by the Real Estate Settlement
and Procedures Act (RESPA) to show the rate which will
be charged on the note signed at closing, including
the total cost to obtain the loan. This includes, but
is not limited to, the total interest paid over the
life of the loan, assuming the full term is carried
out at the note rate, plus certain closing costs. Closing
costs could include prepaid interest, Private Mortgage
Insurance, FHA Mortgage Insurance Premium or VA Funding
fee, whichever may be applicable, and various miscellaneous
costs such as an underwriting fee, tax service fee,
etc., as may be charged by the lender. All of these
"Finance Charges" are taken into consideration
when calculating the APR to give a more accurate picture
of the total cost of the loan. Back to Top
What is an ARM loan?
An ARM loan is an Adjustable Rate Mortgage (ARM). The
interest rate on an ARM loan is adjusted periodically
based on the terms of the mortgage documents. The most
common periods are 6 months or 1 year; however, some
ARM's, most often with banks may adjust your rate as
often as monthly. The interest rate is typically based
on a common index published in newspapers and adjusted
by a margin. The margin is in percentage points and
rides above the index rate. For instance a loan tied
to the T-Bill Index at let's say 6% and a margin of
2% would yield a rate of interest at 8%. ARMs, as opposed
to fixed rates, reflect current market conditions. Given
the condition of the economy this could be good or bad,
and will always be unpredictable. Back to Top
