Do you have questions? We can help! You will find the answers to several frequently asked mortgage questions below.
1. When is my first payment due when I refinance?
Your first payment is due on the 1st of the month. In order to find out the exact month your payment is due you will want to look at page 2 of your HUD-1 statement when you close. There will be a line that talks about the daily interest or “per-diem” interest. On line 901 it will show you the date the interest is paid till. Your first payment is 30 days after that date.
2. Do I have to pay my mortgage payment this month if you are refinancing it anyway?
The short answer is “yes” make sure all your bills are paid on time. The last thing you need is a late payment or a late charge.
3. When do you lock my rate?
Your rate lock is done after the loan is reviewed and the loan package is received by processing. Normally we will lock for 30 days unless the lender we are working with has extended underwriting times. The most important thing to remember is to send any requested information to us quickly so that we don’t miss out on the rate lock.
4. What are your closing costs?
Every loan has closing costs and this is a very important question to consider when looking into a refinance or purchase. The main question you have to figure out is this: should I take a lower rate with closing costs or should I lump the cost of financing into the rate? A good rule of thumb to go by is to look at the closing costs to see if you can get the money back within 3 years. Be honest with this calculation by adding the cost to the loan even if you pay it out of pocket because costs are costs whether you pay it in the loan or out of pocket. For example: you take out a loan for 100,000.00 and you have a choice of a 5% rate with no closing costs paid by you or 4.5% with 2,000.00 in closing costs. In order to calculate this loan correctly you will need to add the 2,000.00 into the lower rate deal in order to compare properly. Here is how it works: 102,000.00 at 4.5% for 30 years equals a payment of 516.82 per month. The payment for a 100,000.00 loan for 5% 30 years is 536.82 which is 20.00 more per month. You find the break even point by taking the 20.00 difference into the 2,000.00 which gives you 100 months. This is the estimated amount of time is takes to make your money back.
5. Do I need an appraisal?
With all the new programs in place there are many instances where you will not need an appraisal. If an appraisal is needed be sure that your home is ready to be inspected. Appraisers are looking for any hazards such as missing railings on porches or even peeling paint so do a quick walk thru to make sure everything looks good.
6. How do I know you guys are a real company?
The best way to check out a mortgage company is to go to http://www.nmlsconsumeraccess.org type in our company number 165864 and you will be able to verify that we are currently licenses in 3 states including Alaska,Georgia and Alabama.