Why choose Northlawn Financial Mortgage?
Will it save me money to Refinance?
Can less than perfect credit qualify?
Why is the APR higher than the interest rate?
What is mortgage insurance?
What is a Rate Lock?
When is a Rate Locked?
Can I pre-qualify before I buy?
What are my closing costs?
What are the different types of mortgages?
Why Choose Northlawn Financial?
Banks have limited loan programs... theirs, at retail rates. Northlawn Financial has relationships with many different wholesale lenders at lower wholesale rates and will provide professional, prompt, and honest service. There are never any hidden or secret fees. Northlawn Financial has the Best Rates, Best Service & the Best People.
Will it save me money to refinance?
You will save money in the long run if you can refinance to a lower interest rate. Our skilled representatives will suggest the best program for your mortgage to maximize the amount of money you can save with a refinance. You can also calculate your monthly payments using the on-line calulators provided.
Can less than perfect credit qualify?
Lenders look at many different factors to qualify a borrower, so there is probably a loan program available that is right for you. We will keep your options open as we try to find a lender best suited to your needs.
Why is the APR higher than my interest rate?
The Annual Percentage Rate (APR) is higher because the APR includes the prepaid finance charges (PFC-points, broker fee, lender fees, etc.) incurred. The APR is considered to be the "cost" of the loan.
What is Mortgage Insurance?
Mortgage Insurance (MI) or Private Mortgage Insurance (PMI) is required when the down payment is less than 20% of the purchase price or the loan amount is over 80% of the appraised value on a refinance. MI protects the lender against losses in the event of a foreclosure. The MI premium is determined by the loan to value. 80.01% to 85% equals .32% of the loan amount, 85.01% to 90% equals .52% and 90.01% to 95% equals .78% of the loan amount. (Ask Northlawn about the most current rates).
What is "Rate Lock"?
The lender's commitment for a rate for a specific period of time in which the loan must close and fund. If the lock expires, the new rate will be either at the current rate or at the original rate if the lock can be extended (at an additional cost). Once you have "locked" the rate, the rate is protected if interest rates rise, but if rates decline, you are locked at the higher rate. Some rates can "float down" as rates decrease, usually for an additional cost. The longer the lock, the higher the interest rate or fee.
When is a rate "locked"?
30 day rate locks are generally available once Northlawn has received your Application Fee. Longer rate locks may require a larger Application Fee.
Can I pre-qualify before I buy?
You can get approval for a loan before you have a home picked out. Northlawn Financial will give you a pre-qualification letter to take to your real estate agent. This letter will give you the confidence to make an offer, knowing you already have been approved for the loan.
What are my closing costs?
There are no "typical" closing costs. Costs vary as not all brokers, lenders and title/escrow companies charge the same fees. They don't even charge the same amount for the same fee. Closing costs do not include prepaid items or reserves.
What are the different types of mortgages?
Adjustable (ARM) or Variable Rate: The interest rate will remain fixed for a set period of time, then will fluctuate up or down at fixed intervals. The rate is tied to an index and has a maximum amount it can go up (cap) per adjustment and a cap for the life of the loan.
Balloon Mortgage: Fixed rate mortgage that is amortized over 30 years but the balance is due after 5, 7, 10 or 15 years.
Conforming Mortgage: Mortgages that fit within Fannie Mae and Freddie Mac guidelines.
Fixed Rate: The interest rate and payments remain constant over the life of the life. Loan terms of 30, 20 and 15 years.
Home Equity Line Of Credit (HELOC): Second mortgage used like a credit card. You are charged interest only on the balance. As the balance is paid down the payments go down and vice versa.
Jumbo Mortgage: Loan amount above $359,650.
Negative Amortization (Neg-Am): The mortgage balance increases whenever your monthly mortgage payments are not large enough to pay all of the interest due on your loan.
Non-Conforming/Sub Prime Mortgage: Less than perfect credit or outside of conforming guidelines.
Piggyback Second: A 1st mortgage and 2nd mortgage from the same lender which closes simultaneously.
Purchase Money Second: Second mortgage borrowed for the down payment on a purchase and usually used to avoid mortgage insurance.
Second Mortgage: Mortgage obtained after the first mortgage and in a second lien position. Usually used for debt consolidation or home improvement.
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