We know how hard it can be to secure a loan for a house, which is why we want to provide you with the best information and resources at all times. Below you’ll find answers to some of our customers' frequently asked questions. Still have a question? Feel free to get in touch with us - we've got answers!
FREQUENTLY ASKED QUESTIONS
When does it make sense to refinance?
Usually people refinance to save money, either by obtaining a lower interest rate or by reducing the term of the loan. Refinancing is also a way to convert an adjustable loan to a fixed loan or to consolidate debts. The decision to refinance can be difficult, since there are several reasons to refinance. However, if you are looking to save money, try this calculation: Calculate the total cost of the refinance Calculate the monthly savings Divide the total cost of the refinance (#1) by the monthly savings (#2). This is the "break even" time. If you own the house longer than this, you will save money by refinancing. Since refinancing is a complex topic, talk to us so we can help you make the best decision for you!.
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What is a rate lock?
A rate lock is a contractual agreement between the lender and buyer. There are four components to a rate lock: loan program, interest rate, discount points (if applied), and the length of the lock in days.
What is a loan estimate?
It is the list of estimated settlement charges that the lender is obliged to provide the borrower within three business days of receiving the official loan application.
What is a jumbo mortgage?
A mortgage loan that is $1 larger than the maximum eligible for conforming purchase by the two Federal agencies, Fannie Mae and Freddie Mac. This can vary depending on where the property is located. For the most part, in 2022, the maximum loan for Fannie Mae and Freddie Mac is $647,200
What is a pre-qualification?
This is the process of determining whether an applicant has sufficient income, credit and assets needed to meet the qualification requirements set by the lender for a particular loan scenario. A pre-qualification is always subject to verification of the information and documentation provided by the applicant.
What is a conforming loan?
A loan eligible for purchase by the two major Federal agencies that buy mortgages, Fannie Mae and Freddie Mac. This can vary depending on where the property is located. For the most part, in 2022, the conforming loan amount for Fannie Mae and Freddie Mac is $647,200