Frequently Asked Questions
MORE answers so some of the most frequently asked questions......
What are closing costs?
Money paid by the borrower (or seller) to effect the closing of a mortgage loan. This normally includes an origination fee, title insurance, survey attorney's fees and such prepaid items as taxes and insurance escrow payments.
What is an APR?
APR stands for the Annual Percentage Rate and is a measurement tool used to provide a standard basis of comparison of loans offered by competing lenders, which takes into account the loan's interest rate, closing costs, and other fees such as points. An APR lets you see the total cost of a loan, including fees and points over the life of the loan, not just the interest due.
What is the difference between my interest rate and APR?
An APR lets you see the total cost of a mortgage, including closing fees and points over the life of the loan, not just the interest due.
What is an appraisal?
A report by a qualified person setting forth an opinion or estimate of value.
What is Mortgage Insurance?
The function of Mortgage Insurance is to insure a mortgage lender against loss created by mortgagor's default. In the event that the borrower dies while the policy is in force, a portion of the debt is automatically satisfied by the insurance proceeds.
What is private mortgage insurance (PMI)?
Insurance written by a private company protecting the mortgage lender against loss as a result of a mortgage default.
What will my monthly payment include?
Principal, insurance, taxes, interest, condo fees, and mortgage insurance, if applicable.
When will my first payment be due?
At closing, you will receive temporary payment coupons that will indicate when your first payment is due.