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Q: I've been late on my mortgage payments. Can I get a loan?
A:
Even if you are months behind on your present mortgage, Five Star Mortgage
can secure the financing you need. We are credit problem specialists and
offer programs designed to help you overcome your financial difficulties.
Q:
What are "points"?
A:
Points are also called origination fees. These fees are charged by the
lender to pay for certain expenses incurred in connection with the processing
of the real estate loan. One point is equal to one percent (1%) of the
amount of the loan.
Q:
What is APR (Annual Percentage Rate)?
A:
APR stands for annual percentage rate and reflects the interest rate charge
on the loan plus other finance charges including, for example, private
mortgage insurance premiums, points and other financing costs you pay
when obtaining the loan.
Q:
What is mortgage insurance?
A:
Mortgage insurance gives protection to lenders by spreading a portion
of the risk involved in lending money on homes to a separate, private
company. Through this process, borrowers can get into a home at a substantially
lower down payment.
Q:
What is an ARM loan and how does it work?
A:
ARM stands for Adjustable Rate Mortgage whereby your interest rate changes
periodically. This period can vary from 1 month to as long as 10 years!
Initially you will get a very competitive rate with an ARM (the so-called
teaser rate). Depending on your program, your interest rate will be adjusted
after a predetermined period. Your rate will be determined by adding two
key figures: the index plus the margin. The index is the fluctuating value
in this equation. Your index may be the 1 Year T-Bill or other. Your margin
is fixed for the life of the loan, and determined at time of lock (2.5,
2.75 etc.). Most loans, not all, will have periodic and lifetime rate
caps to protect you from wild increases (or decreases).
Q:
What is an FHA or VA mortgage?
A:
Federal Housing Administration (FHA) or Veteran's Administration (VA)
mortgages are loans insured by the respective governmental agencies. FHA
programs enable lenders to arrange financing for the borrower with a minimal
down payment. Similarly, VA programs (available to veterans only) can
be made to a borrower who has little or no down payment. When borrowing
under these programs, you will pay a Mortgage Insurance Premium (FHA)
or a Funding Fee (VA) to insure the mortgage. This is similar to private
mortgage insurance on a conventional loan. These insurance premiums may
be paid out-of-pocket at the time of closing or financed by increasing
the mortgage amount.
Q:
How fast can I get my cash?
A:
We can close loans as quickly as 24 hours after your completed application.
The type of loan, amount of home equity, and credit history are factors
that effect how quickly we can get you your money, but loans typically
close in 4 to 6 business days.
Q:
What is the difference between locking or floating my interest rate?
A:
When the borrower chooses to "lock-in" the interest rate, the lender takes
the risk of interest rates increasing during the period of time from lock-in
to loan closing. The down side is if interest rates fall, the borrower
is locked in at the higher interest rate. The benefit is the security
of knowing the interest rate is locked in if interest rates should increase.
When floating the interest rate for any amount of time, the borrower takes
the risk of interest rates increasing during the period from application
to the time of lock-in. The downside to this, of course, is if interest
rates increase during this time, the borrower is subject to the then current
higher interest rates. The benefit would then be if interest rates went
down, the borrower would have the option of a lower interest rate than
if locked in previously.
| Brought
to you by Five Star Mortgage Corporation. No representation is made or is
to be implied as to the accuracy thereof and all information submitted is
subject to errors, omissions, rate change, acceptance conditions, or withdrawal
without notice. ARM APRs may increase after consummation. Offer subject
to credit approval. Advertised rates are prevailing and are subject to change
without notice, and are for new applicants only. Five Star Mortgage Corporation
cannot guarantee acceptance into any loan program, specific loan terms or
conditions. Five Star Mortgage Corporation 1376 Locust Avenue, Bohemia,
NY 11716 Registered Mortgage Broker -- NYS Banking Department Lic#A013838.
All Loans Arranged Through 3rd Party Providers. Five Star Mortgage Corporation
is not responsible for applications submitted in states other than those
Five Star Mortgage Corporation is licensed in. |
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