Are there any penalties for prepayment of a loan? Can I pay off my loan early without penalty?
There are no prepayment penalties on any of the loan products we offer on this site. That means you can pay off any or all of your loan at any time without penalty. Some of the loans we offer (but none listed on this site) do have the option of adding a prepayment penalty, but only if you want one. The reason someone might want to add a prepayment penalty is to obtain a lower rate. Prepayment penalties usually only last for a couple of years, so for some borrowers who plan on being in their houses for a long time a prepayment penalty might make sense. Most borrowers, however, choose to avoid prepayment penalties. (top)
Do you have more rates and loan programs
that are not listed here?
Yes, we offer many other other loans types and rate
options. If you don't see what you are looking for in the rates
section of this site contact
us . From construction loans and long-term interest rate
locks to monthly MTA ARMs and home equity lines of credit, we offer it
all. (top)
How fast can I get approved ?
Usually within 24 hours. Once we have your
paperwork you should have an answer within 24 hours. Some special
types of loans may take slightly longer, but overall the loan approval
process is a quick one. (top)
How fast can I close ?
In about 2 weeks. Even though you should
be approved within 24 hours, it generally takes at least 2 weeks to close
the deal. We have to wait for the final property appraisal (which
usually takes a little over a week) and it usually takes about 2-3 days
to prepare for the closing (preparing the final documents, transferring
the funds to the title company, etc.). Typically, most buyers and
sellers set up their closings for 30-45 days after the offer to purchase
has been accepted. If you need a very quick closing we can probably
accommodate you, but you should
contact us as soon as possible so we
can rush your deal through. A lot depends on how quickly you can
get us the information we need. (top)
Do you do refinances, or just purchases?
We do both. The rates posted on this
site are generally for purchase transactions only, but in many cases refinance
rates are exactly the same. There may be times, however, when purchase
rates are slightly better than refinance rates, so please contact
us for a quick quote. Also, most of our refinance customers
pay no closing costs. Be sure to ask about our No Closing Cost Refinance
Option. (top)
Can I cancel?
Yes, you may cancel your transaction at any time
for any reason. The only downside is that any fees already paid
will be lost. For example, if you paid for a credit report, which is usually
required when you apply for a loan, you will be out the cost of the report
(currently about $10), but you will get a copy of the report to take with
you. Also, after you apply for your loan a property appraisal will
have to be ordered. If you cancel after the appraisal is completed
(in about a week) then you will also forfeit the cost of the appraisal,
but again, you will get a copy to take with you. Other than these
two items, you will incur no cost or penalty if you cancel your loan.
You will owe us nothing. (note: there may be some exceptions for special
loan programs such as long-term lock-in's requiring up-front fees. But,
you will be made aware of any of these exceptions up-front - there will
be no surprises). (top)
What is the deal with a loan being
under or over $417,000?
$417,000 is the current conforming loan limit.
A conforming loan in one that meets the requirements established by
Fannie Mae, and Freddie
Mac, two companies that purchases loans from banks and
lenders. Fannie and Freddie set the conforming loan limits every
year. Currently the limit for a one-unit property is $417,000 (two,
three, and four unit properties have higher limits). Loans above these
limits are considered "Jumbo Loans".
Fannie and Freddie do not purchase jumbo loans, but other institutions
do. These other institutions have there own underwriting rules and
interest rates. Usually loans under $417,000 (called conforming
loans) have the best rates. (top)
I'm self-employed. Is this a
problem ?
Not for us. We have lots of low-rate loan programs
designed just for self-employed borrowers. Most self-employed borrowers
don't want to go through the hassle of providing tax returns and income
statements when applying for a mortgage. We understand this.
If you're self-employed we can make your mortgage process much easier.
(top)
I'm buying a condominium or townhouse. Is
this a problem ?
Not at all. Not only can we do these loans,
we can do them better than almost everyone else. We can do new construction
condos, new condo conversions, low pre-sale condos, high-rises, and even
co-ops, all at great rates. Are you the first buyer closing in a
new condo building? No Problem. Are you having trouble getting
a loan because your condo building contains commercial space? We
can help you out. We do a very large volume of condominium financing,
so whatever your situation we should be able to get you the best mortgage
deal for your new condo. (top)
My down payment is a gift. Is
this a problem ?
Nope. Gift money is fine with us. There may
be some additional documentation required though, and sometimes gift transactions
need to be structured in a particular way. If you are getting a
gift for your down payment be sure to
contact us. We'll make sure everything
goes smoothly. (top)
What if my current house doesn't sell
before I buy my new house ?
It depends. You most likely have a number of
options. You might need a bridge loan (which we can arrange), or
we may be able to restructure your purchase transaction to accommodate
your situation.
Contact us right away and we'll go over
all of your options. (top)
What are the lender costs ?
$495.00 flat fee. This is our cost and it applies
to standard purchase transactions. This, however, is not all you will
pay. Other third parties have fees and costs as well (attorneys, home
inspectors, appraisers, title fees, credit report fees, recording fees,
etc.). The $495 is just the total lender fee. Appraisal and
credit reporting fees are collected by us and then paid out to the appropriate
parties but they are not actual lender fees. Appraisal fees are
generally $300 and credit report fees are about $10 (depending on the
number of borrowers). Also, certain types of specialized transactions
may have additional fees. For example, long-term lock-ins (over
90 days) sometimes require additional up-front deposits or fees, and some
combination loans (80-10-10s) may have slightly higher fees since there
may be multiple end lenders involved. All lender fees, however,
will be completely disclosed to you in advance so that there will be no
suprises at closing. (top)
Are the costs guaranteed not to change
?
Yes. Our lender fee is guaranteed and
will not change. Even if our actual fees go up for some reason during
your loan approval process you will never pay more than the original lender
fees we quoted you on your good faith estimate (very few lenders guarantee
this). Overall costs may go up, however, in certain situations determined
by the borrower. For example, this may happen if the borrower elects
to change loan programs to one that requires up-front fees (long-term
lock-ins) or if the borrower elects to pay points to obtain a lower rate. (top)
How do I compare costs between lenders
?
Be sure to compare just lender costs, not total estimated
transaction fees. Lenders do not have control over things such as
title costs, attorneys fees, etc., and these fees should be the same regardless
of which lender you choose. Also, be careful of charges like 'loan
origination fee' or 'commitment fee' or 'processing fee'. Ask for
a complete good faith estimate from each lender. (top)
Some lenders offer lower costs but
give you a higher rate. How does this work ? Can you do this
too ?
Yes. If you choose to take a slightly higher
interest rate you can actually get money back instead of paying full lender
fees. This is extremely useful for borrowers who are tight on cash
to close. It works like this...there is an interest rate / cost
tradeoff. The higher the rate, the lower the costs (or cash back
to you), and the lower the rate, the higher the costs (in the form of
points). If you take a higher-than-market rate you can reduce or
perhaps even eliminate some or all of your closing costs. The bad part
is that you are paying slightly more per month because of the higher interest
rate. This option is always available even though it may not always
be listed on our rate page. Please contact
us if interested and we'll give you a current rate quote. (top)
What's a 'good-faith-estimate' and
how do I get one ?
The law says that within 3 days of loan application
all lenders must provide loan applicants with a 'Good Faith Estimate of
Closing Costs'. This is an estimate of all lender charges as well
as an estimate of charges from other parties to your transaction.
With us you don't have to wait 3 days - we'll give you a Good Faith Estimate
whenever you want it. We'll fax it to you or email it or snail-mail
it or even make it available for pickup from our offices. Just contact
us and we'll prepare an estimate specific to your transaction. (top)
Exactly what will I pay you and when
will I pay it ?
$9.45 or $14.88 (for either 1 or 2 borrowers) for
your credit report, collected by us at time of application and paid to
credit reporting company.
$300 appraisal, collected by us at time of application and paid to appraiser. (Some
types of properties, such as multi-unit buildings, may have higher appraisal
expenses).
$495 lender fee due at closing.
These are the total lender fees. However, these are not the only
costs in the transaction. Other parties over whom we have no control
will charge additional fees (attorneys, home inspectors, etc). These additional
fees should be the same regardless of which lender you use. Most
of these additional fees are paid at closing. (top)
How do the appraisal and credit report
fees work?
When you apply for the loan, we will order a copy
of your credit report and a property appraisal. You will pay for
these (either by check or Visa/MC). There is no other action required
on your part. The credit report is pulled within minutes and the
appraiser schedules a time with the listing real estate agent or seller
to view the property. You do not need to be present for the appraisal.
If you cancel the loan before the appraiser completes his work, the appraisal
fee is refundable. If the appraisal has already been completed then
there is no refund, but you will receive a copy of the appraisal.
You will automatically receive a copy of the credit report once we do
(via whatever method you like - fax, email, mail, etc.). And you
will receive a copy of the property appraisal at closing. (top)
What are points ? Do you charge
points ?
One point (also called a discount point) is equal
to one percent of the loan amount. Points are considered pre-paid
interest and paying points will get you a lower interest rate on your
loan. The rule of thumb is that for each point you pay, you get
a 1/4 % permanent reduction in the interest rate. For example, you
could drop your rate from 7% to 6.75% by paying one point, and to 6.5%
by paying two points. With us, paying points is completely optional.
If a borrower chooses to pay points they are generally paid at closing. (top)
Are points a good thing or a bad thing?
Neither. Points are just one more option to
consider when getting a loan. Most people choose not to pay any
points, but that in itself doesn't make points bad. For some borrowers,
paying points is a great way to lower their monthly mortgage payments.
For other borrowers, that money might be better used elsewhere.
It really depends on your situation, how long
you plan to be in the property, how much available cash you have, how
much you expect interest rates to change in the future, etc.
We would be happy to evaluate your situation to see which options are
best for you. Contact
us anytime. (top)
I need a pre-approval letter, how do
I get one ?
We can fax or email you a pre-approval letter for
free and with no obligation. It tales about 20 minutes to prepare. Just
contact
us.
(top)
What's the difference between pre-qualification
and pre-approval ?
A pre-qualification is just a loose opinion
from a lender as to how much they think you should be able to afford.
All you have to do to get pre-qualified is talk to a lender over the phone
and discuss your financial situation. The lender then tells you
that you're pre-qualified for a certain loan amount. We do the same
thing online with our tool:
How Much Can I Afford.
A pre-qualification may not take into account some of the more detailed
aspects of your situation. It's great for a quick idea about how
much house you can afford but it's not very helpful to your real estate
agent or to anyone selling a home. These people want you to be pre-approved.
Pre-approval is more involved than pre-qualification. More detailed
questions are asked and your credit history is checked. We offer
free pre-approvals and free pre-approval letters. Just contact
us.
(top)
Should I get pre-approved ? How
do I do this ?
If you have a specific property in mind, then you
should get pre-approved. It can be done very quickly and we do it
for free. If you don't have a specific property in mind then you
will probably be OK with just a pre-qualification to start with.
You can check out our online tool, How
Much Can I Afford , or contact
us and we'll be happy to do either one for you over the phone. (top)
How much can I afford ?
Find out
here. (top)
What are 'qualifying ratios' ?
Your "ratios" are percentages of your debt
as compared to your income. If your ratios are too high (meaning
you have a relatively high amount of debt as compared to your income)
then you may not qualify for your specific loan. The maximum allowable
ratios used to be 28/36. The first number, 28, is your "front-end
ratio" and is the amount of your income that can be taken up by your
housing payment (that is, a maximum of 28% of your gross monthly income
can go toward your total monthly housing payment. If you make $4000
a month before taxes, then your maximum housing payment can't exceed 28%
of that, or $1,120). The second number, 36, is your "back-end ratio".
This number includes all debt - your housing expense, car loans,
credit card bills, everything except utilities. If your total monthly
debt level was more than 36% of your gross monthly income, then you didn't
qualify for the loan.
The 28/36 ratios aren't used much anymore. Now they tend to be much
higher. Different lenders have different maximum ratios. Some
use 33/38, and some will go as high as 50 depending on the borrower's
financial and credit situation. To complicate matters, in recent
years other factors such as borrower credit scores and assets have become
increasingly more important in determining how much someone can afford.
As a result, debt ratios across the board have become somewhat less defined.
All of this can make it more difficult to determine exactly how much a
buyer can afford, and it makes it even more important to discuss these
issues with a mortgage professional. (top)
What is APR, is it important ?
APR stands for Annual Percentage Rate. Importance:
in our opinion, on a scale from 1 to 10 - it's about a 3.
Seriously, it's not all that relevant. If you don't believe us ask
your real estate attorney.
APR is NOT used to calculate your mortgage payment.
Your payment is calculated using the regular, nominal interest rate, not
the APR. You will never use the the APR figure for any calculation
for as long as you have your loan. APR is only a tool to help you
compare two different loans, and it's not even that good of a tool.
All Lenders are required by law to display APR with their interest rate
quotes. APR is supposed to show the total annual cost of a mortgage
(including closing costs) over its full term (usually 30 years). This
cost is shown as a percentage of the amount borrowed. By doing this,
the APR tries to help you compare total loan packages between say, a 30
year fixed loan and a 3/1 ARM, or between a 15 year fixed and a 7/23 balloon
loan.
The one thing (we think) APR is good for is as a quick check tool.
If there is a large difference between the APR and the actual rate then
be careful, the loan may have high hidden fees associated with it.
The APR will always be slightly higher than the actual rate just because
of how it is calculated, but make sure that there is only a slight difference,
not a large one.
Other reasons why APR is not that important:
- Two people with the exact same loan but who close on different days
of the month will have different APR's.
- Two people with the exact same loan but one has a 20% down payment and
the other 19% will have different APR's (because of PMI, private mortgage
insurance).
- Lenders know which costs have to be included in the APR calculation
and which do not. They routinely re-name costs so as to exclude
them from the calculations and show an artificially low APR.
- Lenders also use different methods of calculating APR. Even though the
APR calculation should be standardized for all lenders, in practice it
isn't. (top)
Why is the APR higher than the Interest
Rate ?
The APR is always higher than the actual rate.
This is because the APR calculation includes certain closing costs as
well as pre-paid interest and PMI (if applicable) whereas the actual (nominal)
rate does not take these into account. If you deduct these costs
from the amount of your loan and then compare this figure to your monthly
payment amount (solve for the rate that equates them) you end up with
the APR. Even if you eliminate all of your closing costs and don't
have PMI, your APR will still be higher than your nominal rate because
you will still have at least one day on interest to pay at closing (assuming
you close on the last day of the month). (top)
How does this site calculate APR ?
The general formula for figuring out APR is to first
calculate your normal monthly loan payment (principal and interest). Next,
deduct from the loan amount any 'finance charges' (see below). Then solve
for the interest rate that makes the new loan amount (the one with 'finance
charges' deducted) come up with a monthly payment that's the same as the
original monthly payment.
For our site the finance charges include estimates for title company closing
costs, our lender fee, and the prepaid interest for the month in which
you close. We make certain assumptions: $150,000 loan amount,
20% down payment, and closing on the last day of the month. (top)
What are the known problems with APR
?
There are several. Problems
arise when lenders use different methods of calculating APR or different
loan assumptions. Even though the APR calculation should be standardized
for all lenders, in practice it isn't. Also, someone with a 5%
down payment will have a higher APR than someone with 10% down even though
their actual interest rates are the same. Someone using a title
company with lower closing costs will have a lower APR. Loans closing
on different days of the month will have different APR's. All of
this makes APR very confusing to most people. (top)
When is APR useful ?
As a quick-check tool. For a lender with normal
closing costs, the APR on a 30 year fixed loan should be just slightly
above the actual quoted interest rate (depending on down payment).
A lower APR at any given rate should mean lower closing costs, but be
careful, well-meaning lenders may calculate APR differently. If
there is a big difference between APR and the interest rate it could mean
that there are hidden fees. (top)
What kind of credit report do you order?
We order a "triple-merged" credit report,
which pulls information from all three credit bureaus (
Experian,
Equifax, and
TransUnion ). (top)
What is a credit score, what is a FICO
score ?
FICO (pronounced 'fye-ko') stands for
Fair, Isaac and Company. Each of
the three credit bureaus (
Experian,
Equifax, and
TransUnion ) takes your entire credit
history and "boils it down" to one number, your FICO score.
These scores are calculated using algorithms from Fair, Isaac &
Co. and each bureau figures them slightly differently. As a result,
you end up with three scores, one from each credit bureau. The exact
methods of these calculations, the bureaus say, are company secrets.
Of your three credit scores, most lenders look just at the middle number.
So, if your scores are 710, 690, and 645 your credit score for mortgage
purposes is 690. (top)
What is considered a good credit score
?
It depends. Generally anything above 660 is
considered "A" credit. There is some question as to exactly
what the possible range of credit scores is. Some sources say the
range is 300 to 900 while others say 350 to 850. The exact range
really doesn't matter much though, as we've never seen a credit score
below 400 or much above 830. Some lenders will consider scores as
low as 620 to still be "A grade". If you're above about
720 then congratulations, you get an A+. Borrowers with scores below
620 may have difficulty obtaining a mortgage at the most competitive rates.
(top)
How do I get a copy of my credit report
?
You will automatically receive a copy of your credit
report shortly after we get it. Let us know how you want to receive
it (fax, mail, email, etc.). (top)
What if there are mistakes on my credit
report ?
There is a process to fix mistakes on your credit
report.
Contact us and we'll explain it to you
in detail. Be aware though, that this process can take quite a while,
so the sooner you get started the better. (top)
Will checking my credit report multiple
times make my scores drop ?
Yes and No. Yes, it is technically true that
multiple orders of your credit report could temporarily reduce
your scores, but any reduction is usually minor and definitely temporary.
A person would have to have many many credit inquiries over a long period
of time to see a significant adverse impact on their scores. Even
then, the impact would be small and only last for 90 days at most (90
days is the length of time inquiries remain on your credit report).
Also, credit companies now take into account the fact that people actually shop for mortgages and might have multiple inquiries into their credit history. These credit bureaus now tend to count multiple inquiries for the same reason (like getting a mortgage) as just one inquiry. (top)
Can I lock in the rate before I find
a house ?
No, you need to have a signed purchase contract in
order to lock the rate. This is because you need to know the exact property
address and purchase price before you lock. You can apply for your loan
before you lock-in though. If you don't have a property but want
to apply, contact
us. (top)
How long is the rate locked for ?
However long you need. The
rates quoted on this site are usually good for 30 or 45 days, but if you
need a longer lock period we can accommodate you.
Contact us for more information. (top)
If the rates go down can I re-lock
the rate at the lower level ?
Maybe. Certain loan programs have "float-down"
options. This means that if the rates drop you can re-lock at the
lower rate before closing. There are some restrictions on this however.
Contact
us and we'll go over your options.
What if my deal doesn't close before
the lock expires ?
Usually we can extend your rate if need be.
These are case by case situations however. (top)
What documentation do you need from
me ?
It depends on your situation, but we try to keep
paperwork requirements to a minimum. In general, for non-self-employed
borrowers we will need copies of your most recent pay stubs, most
recent bank statements and most recent W-2 form(s).
Certain borrowers may need to provide more documentation, and certain
borrowers may need to provide less. We won't know until we get the
details of your transaction.
All borrowers must sign a mortgage application form and certain related
disclosures. (top)
Can I apply for the loan ahead of time,
before I buy a house ?
Sure.
Contact us and we'll get you started. (top)
How do I apply ? What's involved
?
You can apply for the loan a number of ways - by
phone, by fax, by mail, or even in person (if you want to visit
our Chicago offices). The easiest way to apply is probably to contact
us and let us sent you the loan application, required disclosures and
list of required documents. (top)
Do I have to apply after I lock my
rate ?
Yes. We ask that you start the application
process within 24 hours of locking your rate. (top)
What is PMI ?
PMI stands for Private Mortgage Insurance. PMI is
insurance, but it doesn't benefit you directly. PMI insures the
end lender against loan default. You just get to pay for it.
Anyone with less than 20% down has to have PMI (or certain PMI alternatives).
PMI is usually charged monthly (although there are a couple of options)
and is added to your monthly loan payment. (top)
Do I have to have PMI ?
If you have less than 20% down, lenders require
PMI. At 20% down or greater you don't have to worry
about PMI. There are several alternatives to PMI, but non of these
(80-10-10s, lender-paid PMI, etc.) is as good as avoiding PMI in the first
place. (top)
How much does PMI cost ?
It depends on your down payment. PMI is charged
as a percentage of the loan amount. If your down payment between
5% and 9.99% the PMI percentage is usually .0078, from 10% to 14.99% the
PMI percentage is .0052, and from 15% to 19.99% the percentage is .0032.
With 20% or above PMI is not required.
So, for a $100,000 loan amount with a 10% down payment the PMI charge
would be $520 per year ($100,000 X .0052). Divide this number by
12 to get the monthly charge that will be added to your mortgage payment
($520 / 12 = $43.33). (top)
Are there alternatives to PMI ?
Yes. The 2 main alternatives to PMI are combination loans (80-10-10s,
etc.) and "Lender-Paid PMI".
An combination loan is a program where instead of getting one loan for
say 90% of the sales price (10% down) you get 2 loans - one for 80% and
another for the remaining 10% (you still put 10% down). Because
the primary loan is not above 80% of the property value you do not have
to pay PMI (it's kind of a loophole in the system), but the rate
on the second loan is usually much higher.
Unlike PMI, where you have the ability to cancel once you have 20% equity
in your property, an 80-10-10 stays with you until you pay it off (or
refinance).
There are also tax benefits for having an 80-10-10 versus a single loan
(the interest of the second loan is tax-deductible, whereas PMI is not
- check with your accountant).
For many people a combo loan makes good financial sense. We do lots
of these. If interested,
contact us.
The second option, Lender-Paid PMI, is also
effective but is not as common. Here, a lender does not charge PMI
but gives you a slightly higher interest rate instead. Although
there are tax advantages to this option, some people are turned-off by
the higher rates. We do have this option available if interested. (top)
What is a closing ?
The final step in the home buying process.
A closing is a meeting where the final paperwork is signed and the property
sale is completed. (top)
What happens at the closing ?
Signing papers and sitting around. You
show up, sit around a table, sign a stack of papers, drink coffee and
wait for the closing agent to finalize the paperwork and disburse the
money (sometime this takes a while). After that, you usually get
a set of keys, shake everyone's hands, and go home. (top)
Where does the closing take place ?
Usually at the title company or the sellers' attorney's
office. (top)
When is the closing ?
The seller's attorney usually sets the closing time
and date with the title company (with input from your attorney), and then
the title company confirms with us. While the actual closing date
is usually dictated by the terms of the purchase contract, you (the buyer)
can make your preferences known. Everything is subject to negotiation.
If you want the closing to take place at a specific time, or on a specific
date, let your attorney know this as soon as possible. You may not
get your way, but it never hurts to ask. (top)
How long does the closing take ?
Usually about 1 to 2 hours, but it's always a good
idea to allow plenty of extra time, just in case. (top)
What do I bring to the closing ?
Usually
just a picture IDs and money. Driver's licenses
are fine. Passports are OK too. IMPORTANT: the money
you bring needs to be in the form of a bank cashier's check (or some other
form of certified funds). You can make the check out to yourself
and endorse it over to the title company at closing. Or you can
just make the check out to the title company. Follow your attorney's
instructions in this matter.
Sometimes you may need to bring other things as well. We may want
you to bring some original documents that were previously faxed to us,
or we may want to see your closing statement from your house sale that
just happened that morning, etc. We'll let you know. (top)
Is a personal check OK ?
No. You will bring just one check to cover
all remaining unpaid costs. It must be certified funds (a cashier's
check), not a personal check. Make the check out yourself or to
the title company (whomever your attorney says). The exact amount
will be known by your attorney about 24 hours prior to closing.
If you need to get your check before you know the final amount, then it's
usually OK to bring more money than you think you'll need. You will
get a check back from the title company for any extra you bring. (top)
Who attends the closing ?
At a minimum there will be you (the buyer), your
attorney, the seller's attorney, and the title company's closing agent. Other
possible attendees include the sellers (they don't actually have to be
there), the sellers' real estate agent, and your real estate agent. (top)
What about first time buyer programs
?
The main feature of "first time buyer" programs is that they
let you buy with little or no money down. We have these programs
too, but with us almost anyone can use them, not just first time buyers.
Contact
us if interested. (top)
When is my first mortgage payment due?
The beginning of the second month after you close.
If you close on May 1st your first payment is due
July 1st. If you close on May 30th your first payment is still due
July 1st. You don't really skip a month even though it looks that
way. Your July 1st payment actually pays for all of June (unlike
renting, where your July rent pays for all of July). The payment
for the partial month of May (your closing month in this example) is paid
by you at the closing and is called pre-paid or per-diem interest.
Your payments are always due on the 1st of the month but are generally
not counted as late unless received after the 15th.
Here's a schedule:
Closing
in |
1st Payment
Due |
January |
March 1st |
February |
April 1st |
March |
May 1st |
April |
June 1st |
May |
July 1st |
June |
August 1st |
July |
September 1st |
August |
October 1st |
September |
November 1st |
October |
December 1st |
November |
January 1st |
December |
February 1st |
Note: to every rule there is an exception. If your closing takes place within the first couple of days of the month you can set up your payments to start the very next month. This is done by arranging an "interest credit". This can help reduce the amount of money you need to bring to closing. Contact us for more info. (top)
Do I have to get homeowners insurance,
how do I do this ?
Yes - if you are buying a single family or multi-unit
building. No - if you are buying a condominium. Lenders require
that you have a homeowners insurance policy on all purchases of single
family homes. You must obtain this policy before closing.
You can use any insurance agent you want, but the amount of coverage on
the policy must be equal to or greater than the amount of your loan -
OR - the policy must have a 'guaranteed replacement' clause. We
will need the name and phone number of your agent so that we may exchange
information with them. (insurance policies can run anywhere from
about $300 to well over $1000 depending on property value and policy specifics)
It you are buying a condominium then you are not required to have homeowners
insurance as you are already paying for this type of coverage as part
of your monthly condo assessment. You
may want to get insurance to cover the contents of your condo (furniture,
etc.) but it is not required for your mortgage. (top)
| OUR
RATES TODAY |
|||
| Rate |
Points |
APR |
|
| 30 Fixed |
NA
|
0 |
NA
|
| 15 Fixed |
NA
|
0 |
NA
|
| 5/1 ARM |
NA
|
0 |
NA
|
| 1yr ARM |
6.0
|
0 |
6.02
|
| Our
rates are updated every 15 minutes.
Next update in min. |
|||
| More
Rates >> |
|||
| NATIONAL
AVERAGES |
||||
| Rate |
Points |
|||
| 30 Fixed |
6.18
|
0.4
|
||
| 15 Fixed |
5.93
|
0.4
|
||
| 5/1 ARM |
5.98
|
0.5
|
||
| 1yr ARM |
5.47
|
0.6
|
||
| Current national averages
as |
||||
Source:
Freddie
Mac |
||||
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