No, the payment is actually made through the close of escrow in the form of prepaid interest. Let’s dive into this a little further: when you pay off a mortgage, the lender will add in what’s called prepaid interest on to the current principal balance and the payoff demand will be reflected higher than what…
Obtaining a home loan requires careful consideration of not only the costs involved, but where your loan is being originated. When people think “mortgages”, they usually think of their local bank or a mortgage broker. Internet only lenders are also in the competitive mix, aggressively promoting ultra-low rates aimed at the masses. Because an internet…
Securing a mortgage today requires careful consideration of all the figures. Biggest numbers most consumers pay attention to include loan amount, interest rate, closing costs and the most scrutinized, the annual percentage rate. APR for short, is a disclosure item required loan advertisements and at loan application. Set forth by TILA (Truth In Lending) and…
We receive this question very frequently. Does it make sense to finance closing costs into the loan amount or is it more beneficial to bring the closing costs into the close of escrow? First things first-no matter how the closing costs are paid, amount remains the same, unchanged. Take a $300,000 loan amount for example…
No, and neither can any other mortgage lender. Few questions: the credit report did you have, where is it from exactly? If it’s from a car loan, it doesn’t really help you because most mortgage companies will need to pull what’s called the Tri-Merge credit report, deriving a score from each credit bureau. Most auto…
A program made popular in the height of the subprime lending environment was no-cost mortgages. No-cost loans have gained strong interest as consumers are savvy in deciphering loan terms, rates and how to qualify for credit in a constrictive lending environment. Whether buying a home or refinancing a mortgage, following are key differences between the…
Yes, although slightly limited. Without any down payment, you’ll most likely be looking at one of two loan programs both of which have some slight limitations to be aware of. Before we dive into the nuts and bolts of each program, know this: It only takes 3.5% down to buy a home these days. Additionally,…
You may or may not have heard the FHA is once again making their insured loans for purchasing or refinancing higher for consumers for all case numbers issued June 1, 2013 or after. These changes will limit borrowing power and will place a heavier emphasis on income to offset the liability, i.e. higher mortgage payment.…