|
 I've
been late on my mortgage payments. Can I get a loan?
Even if you are months behind on your present mortgage, Top Flite Financial
can
secure the financing you need. We are credit problem specialists and offer
programs designed to help you overcome your financial difficulties.
What are "points"?
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.
What is APR (Annual Percentage Rate)?
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.
What is mortgage insurance?
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.
What is an ARM loan and how does it work?
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).
What is an FHA or VA mortgage?
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.
How fast can I get my cash?
The average loan can usually close within 10 days to two weeks, but in some
instances it may take longer. The
type of loan, amount of home equity, and credit history are factors that effect
how quickly we can get you your money.
What is the difference between locking or floating my interest rate?
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.
|