FAQ


Guaranteed Lowest Rates

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Q: How can I be sure you have the best rates?
A: The reason we are able to offer you the lowest rates on the market is because our business model keeps our costs low allowing us to offer you a mortgage at the lowest possible cost.   We can easily beat all major retail lenders and brokers, just show us the best you’ve found and we will save you either on rate or closing costs.

Q: How can I decide on the best loan for me?  Should I pay points?
A: It’s important for you to know how long you will be staying in your property and whether you want to lower your payment or your term.   Paying points will give you a much lower payment and the cost of the points are tax deductible.  If you want to lower the term of your loan by a few years you can do so by lowering the interest rate and maintaining the current payment you are now making.  This will save several years from the remaining years left on your mortgage.   Decide on what is important for your situation, a lower payment or a shorter term and the best loan for you will be easier to find.

Q: How long does it take to close a loan with your company?
A:  We can typically close a loan in 3 weeks on a simple refinance but on more complicated refinances such as with subordinations it may take up to 6 weeks.  The reason is subordinations can take from 2-4 weeks since have no control over that process.

Q: Do you have a rate lock policy?
A:  Yes.  After we receive your signed application with disclosures, income documentation, and a credit card number for the appraisal, we will lock the rate agreed upon. 

Q: What happens if rates go up before we lock?
A: This can happen, therefore it is important you act quickly on returning the required documents to avoid this possibility. In the event rates increase we will offer you new options which could include waiting a day or two or locking at a slightly higher rate.

Q: What happens if rates go down after I lock?
A: Rates can go down or up during any given day.  The reason you lock the rate is so you won’t have to worry about a rate increase.   If your decision about your rate is sound and it makes sense you should go ahead and lock otherwise you should “float” your rate.   We recommend you lock to avoid any risk.

Q: What documents will I need to furnish you?
A: Typically last year’s W2, a current paystub, your mortgage statement and homeowner’s insurance policy info.  If self employed you will have to furnish last year’s tax return.   If you are retired a copy of the award letter and 1099 or your tax return.

Q: What’s the difference between interest INTEREST RATE and APR?
A: The interest rate is what is used to figure your monthly payment.   The apr is a standarized government calculation which takes into account the loan fees over the term of the loan.   In theory, the apr is supposed to allow you to compare different loans being offered to you – those with a higher apr will be charging you more in fees.   Keep in mind depending on your loan amount the apr will vary with the apr being higher on smaller loan amounts and lower on higher loan amounts.   It is important to compare interest rate and fees charged on the same day, preferably within a couple of hours because rates vary during the day and could significantly vary from one day to the next.

Q: Do I have to have an “Impound Account
A: No, an impound account is not required unless your loan to value is over 90%, however if you don’t set up an impound account your points will be .25 higher

Q:  How many months of Property Taxes and Homeowner’s insurance are required to set up the impound account?
A: Anywhere from 3-7 months for taxes depending on the month we close and 2-3 months for insurance.   If your insurance renews within 2 months of closing the lender will require for the policy to be paid for the year.

Q:  Do I have to pay an appraisal fee?
A:  Yes.  The appraisal fee will be your only upfront investment into your loan.   Depending on the type of appraisal required by the lender and the value of your property the cost will range from $340 to $600

Q: What is HVCC - Home Valuation Code of Conduct?
A: It is a new policy adopted by Fannie Mae and Freddie Mac to protect the integrity of the appraisal process. Basically what it does is to shift the appraisal process from the broker or lender to an independent Appraisal Management Company. The purpose is to eliminate any influence on the part of the lender or broker. It also requires a copy of the appraisal to be mailed to the client at least 3 days prior to funding. Lenders are requiring a sign affidavit from the borrowers that they received the appraisal.

Q: Can I have a copy of the appraisal report?
A: Yes, as part of HVCC you will receive a copy of the appraisal.

Q: What is pre-paid interest?
A:  Pre-paid interest is the interest due to the new lender from the day you close until the end of the month.   For example, if your loan closes on the 15th of the month you would be required to “pre-pay” 15 days of interest to the new lender.   The reason is that mortgage interest is paid in arrears and the following month after closing no payment is due.  

Q:  Are “points” tax deductible?
A: Yes, points are tax deductible and you should consult your tax consultant for your specific situation

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