FAQs


What will my interest rate be?

Mortgage rates are based on a variety of factors such as the loan purpose type, occupancy, credit history and loan to value. Upon receipt of your application we will provide you with a custom rate quote based upon your credit profile and loan attributes.

 

Why is the interest rate different than the APR?

Your interest rate is the monthly cost you pay on the unpaid balance of your home loan. An Annual Percentage Rate (APR) includes both your interest rate and any additional cost or prepaid finance charges such as origination fee, points, private mortgage insurance, underwriting and processing fees (your actual fees may not include all of these items). While your interest rate is the rate at which you will make your monthly mortgage payments, the APR is a universal measurement that can assist you in comparing the cost of mortgage loans offered by different mortgage lenders.

 

How much are closing costs?

Closing cost include items like appraisal fees, title insurance fees, attorney fees, prepaid interest and origination fees. These costs can vary due to differences in the type of mortgage, the property location and other factors. Once you have applied, you will receive a Loan Estimate which provides you with important information, including the estimated interest rate, monthly payment and total closing costs for the loan.

 

What is PMI?

Private Mortgage Insurance is an insurance policy that protects the lender against loss if the borrower defaults. Private Mortgage Insurance is generally required when a borrower has less than 20% of a down payment when purchasing a home or less than 20% equity in a property being refinanced. The amount of PMI varies depending on factors such as credit scores, property type, loan purpose and loan to value. The cost of the mortgage insurance is included in your total monthly mortgage payment.

 

How does an escrow account work?

An escrow account is a convenient way to manage property taxes and insurance premiums (like homeowners insurance, mortgage insurance, or flood insurance). Instead of paying one or two large tax or insurance bills each year, you will pay in monthly installments as a part of your total monthly mortgage payment. When the bills become due, the lender will pay them out on your behalf from the funds in your escrow account.