Frequently Asked Questions
Q: How much do I have to put down?
A: There are many variables in this equation. Credit, income and other factors like loan program type all come into play. It may be 3%, it may be 20%, it may be 25%. If you aren't familiar with the process you should definitely reach out about this. Many people are under the assumption you have to put 20% down, when you may be able to put 5% down with potentially no difference in interest rate.
Q: What will my rate be?
A: Your interest rate is determined based off a multitude of factors, the main ones being loan purpose, loan to value (down payment for purchases) and credit score. Fortunately we are very rarely if not ever beat on rate. We run a lean shop which affords us the ability to price this way.
Q: How much can I afford?
A: The most accurate answer will come from doing a full mortgage application. If you are not interested in doing that right now, there are online calculators or you can speak with me and I can provide you some general direction.
Q: What are pre-paids/escrows?
A: An escrow account is a separate account that holds funds for the purpose of paying bills like property taxes and hazard insurance. When having escrows as piece to your mortgage, your monthly mortgage payment will have these expenses included, broken down monthly.
Q: What is PMI?
A: PMI refers to Private Mortgage Insurance. For most traditional loan programs with a loan to value over 80%, PMI is required. PMI is provided by private mortgage insurance companies for the purpose of portecting lenders if the borrower defaults on the loan. We have an AMAZING loan product that is 10% down on homes up to $800K with NO PMI and still low rates
Q: Why should I refinance?
A: Refinancing might not always be the best option, but there could be many reasons a borrower might consider refinancing.
To lower monthly payment
To lower the interest rate
To get out of an adjustable rate mortgage or balloon note
To pull some equity out of the property as a cash out loan. Cash out can be used for many things such as paying off other debt or using that money to put a down payment on another property
Q: Do we do personal loans?
A: No, we only do mortgage lending. For inquiries about commercial lending, send me an email.