Frequently Asked Questions

A mortgage broker counsels you on the various loans and rates available from different lenders. A mortgage broker will take your application and process the loan which involves putting together the complete file including the credit report, appraisal, verification of your income and assets. When complete the mortgage broker will submit it to the lender who “underwrites” the package to come up with a credit lending decision. 

It shouldn’t be a problem. There are many programs available today that require as little as 3.5% down payment. Contact us and we can find the right program for you!

Private mortgage insurance (PMI) policies are designed to reimburse a mortgage lender up to a certain amount if you default on your loan. Most lenders require PMI on loans where the borrower makes a down payment of less than 20%. Premiums are typically paid monthly however it can also be financed.

A fixed rate mortgage means the interest rate and the amount you pay each month remain the same over the entire mortgage term.  

On an Adjustable rate mortgage also known as an (ARM), the interest rate fluctuates per the indexes. Initial interest rates of ARMs are typically offered at a discounted interest rate lower than fixed rate mortgage. Over time, when initial discounts are filtered out, ARM rates will fluctuate as general interest rates go up and down.

Different ARMs are tied to different financial indexes, some of which fluctuate up or down quicker than others. ARMs typically have a CAP as to how much and how often the interest rate and/or payments can change in a year and over the life of the loan. To see if a ARM is right for you, contact us to discuss your options.

Closing costs are the fees associated with acquiring a mortgage loan. Such costs include but are not limited to: Lender fees, Origination fee, Discount points, Third party service fees for appraisal, credit report, flood certification, Title and escrow, attorney charges, Per Diem Interest (daily interest), mortgage tax as required by the city, state, etc.  Mortgage Lenders are required by law to provide you a preliminary estimate after you submit your application.

In almost all cases, the cost of an appraisal is the only out of pocket expense in a refinance.