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| FAQ's |
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| Will
it take long to find out about a loan? |
| I
already have a 2nd mortgage, can I refinance? |
| Will
the interest on my loan be tax deductible? |
| Do
I have to go to your office to sign the documents? |
| What
is an escrow account? |
| Can
I pay my own taxes and insurance? |
| When
will my loan close once I have applied?
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How
can I find out if a second mortgage will benefit me?
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| On
a 2nd Mortgage how much money can I get? |
| What
if my credit score isn't perfect? |
| Why
is the Annual Percentage Rate (APR) on the Truth in
Lending Disclosure higher than the rate shown on my
note, which is the rate I thought I chose?
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| What
is an ARM loan? |
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| Will
it take long to find out about a loan? |
| Not
at all, within 5 minutes you can provide all the information
that we need to get your loan pre-approved. |
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| I
already have a 2nd mortgage, can I refinance? |
| In
most cases, you can not only refinance your existing
2nd mortgage to consolidate additional debt or get cash
out, but you will more than likely qualify for a lower
rate! |
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| Will
the interest on my loan be tax deductible? |
| Yes,
in most cases the interest you pay on home financing
is tax deductible. Some restrictions apply to high-loan-to-value
and investment property transactions. Please consult
with your tax advisor for confirmation. |
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| Do
I have to go to your office to sign the documents? |
| Not
at all! We go to you, wherever it's convenient. Whether
it's at home, work, or on the weekends. Or we can overnight
you the paperwork! |
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| What
is an escrow account? |
| When
borrowers make their monthly mortgage payments, they
generally also pay one-twelfth of the anticipated annual
amount needed to pay taxes and insurance premiums. These
additional funds are deposited into an escrow account
(also known as an impound account), until the lender
pays the taxes and insurance premiums as they come due.
The borrower benefits for budgeting reasons because
the costs are spread through the year rather than a
lump sum. This method allows the lender greater control
in avoiding tax delinquencies or lapses of hazard insurance
coverage on the property. Mortgage documents often stipulate
lenders to establish an escrow account. |
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| Can
I pay my own taxes and insurance? |
| When
a loan is originated, the mortgage documents specify
the escrow conditions. Lenders are required to establish
escrow accounts only for FHA insured mortgages. With
conventional loans you typically have the option to
establish an impound account or make property taxes
on your own. We will present you with the options at
the time of financing. Choosing an impound account is
often a convenient way to budget for property taxes
and insurance. |
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| When
will my loan close once I have applied? |
| Your
lender will begin to work on verifying all the information
you've provided. This process generally takes from 1
to 6 weeks, depending on the type of mortgage you choose.
1st mortgages and 2nd mortgages can vary quite a bit.
You can request that your loan consultant give you a
range of time based on your loan program. Part of your
loan closing in a timely manner is a reflection on your
willingness to provide our staff the appropriate documentation
needed through the close of the loan. |
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How
can I find out if a second mortgage will benefit me?
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| Within
a few minutes of your initial conversation with one
of our loan consultants we can inform you whether or
not a 2nd mortgage will benefit you. Most second mortgages
are used for consolidating debt, home-improvement, or
cash out for any reason. 2nd mortgages are a great way
to consolidate high interest credit card debt and they
usually create a much lower payment than what you are
paying now, and in most cases the interest may be tax
deductible. |
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| On
a 2nd Mortgage how much money can I get? |
| Up
to $200,000 or more if you have equity and up to $75,000
even if you have no equity. Your loan consultant will
provide you with the best possible loan program tailored
to your needs. |
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| What
if my credit score isn't perfect? |
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That's
fine, our staff is prepared to offer alternative loan
programs to fit your needs.
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| Why
is the Annual Percentage Rate (APR) on the Truth in
Lending Disclosure higher than the rate shown on my
note, which is the rate I thought I chose? |
| All
lenders are required by the Real Estate Settlement and
Procedures Act (RESPA) to show the rate which will be
charged on the note signed at closing, including the
total cost to obtain the loan. This includes, but is
not limited to, the total interest paid over the life
of the loan, assuming the full term is carried out at
the note rate, plus certain closing costs. Closing costs
could include prepaid interest, Private Mortgage Insurance,
FHA Mortgage Insurance Premium or VA Funding fee, whichever
may be applicable, and various miscellaneous costs such
as an underwriting fee, tax service fee, etc., as may
be charged by the lender. All of these "Finance
Charges" are taken into consideration when calculating
the APR to give a more accurate picture of the total
cost of the loan. |
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| What
is an ARM loan? |
| An
ARM loan is an Adjustable Rate Mortgage (ARM). The interest
rate on an ARM loan is adjusted periodically based on
the terms of the mortgage documents. The most common
periods are 6 months or 1 year; however, some ARM's,
most often with banks may adjust your rate as often
as monthly. The interest rate is typically based on
a common index published in newspapers and adjusted
by a margin. The margin is in percentage points and
rides above the index rate. For instance a loan tied
to the T-Bill Index at let's say 6% and a margin of
2% would yield a rate of interest at 8%. ARMs, as opposed
to fixed rates, reflect current market conditions. Given
the condition of the economy this could be good or bad,
and will always be unpredictable. |
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