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.