Frequently Asked Questions
Answers so some of the most frequently asked questions......
How long does the mortgage process take?
Processing and closing a mortgage usually takes between seven and 30 calendar days. An IPG or Good Home Loan Lender can give you a precise estimate based on your individual situation.
What is an adjustable rate mortgage (ARM)?
A type of mortgage instrument in which the interest rate adjusts periodically according to a predetermined index and margin. The adjustment results in the mortgage payment either increasing or decreasing. A 1-year ARM, for example, will have an initial interest rate for 1 year and then adjust on the second year, and continue to adjust annually over the life of the loan. With an ARM loan, you typically get a lower starting rate in exchange for taking a risk that rates may rise in the future. There is also a cap on how much the interest rate can go up or down.
What is a Fixed-rate mortgage?
A Fixed-rate mortgage is a loan that has the interest rate and payment set for the life of the loan. The benefit is that you always know what your principal and interest costs are, which takes out the guesswork when planning.
What is a Balloon Mortgage?
A mortgage that has level monthly payments that will fully amortize over the stated term, but which provides for a lump-sum payment to be due at the end of an earlier specified term.
What is my down payment?
This is the amount of money you have available to put down toward the purchase of a home. The down payment and the loan amount make up the purchase price of the home.
What sources can I draw from for my down payment?
Examples of acceptable sources for your down payment are savings accounts, money market accounts, the sale of real estate, stock liquidation, IRAs, 401(k), cash value of a life insurance policy, brokerage accounts, retirement accounts and gifts.
Click here for more answers to your questions.