Should I lock my interest at an application or float the rate until closing?
The answer depends on one's outlook for rates in your city, whether you are satisfied with the current rate being offered (and would not be deterred from proceeding if rates declined), when you need to close and whether or not a rate increase could affect your ability to qualify for the mortgage. With a purchase, there is a contractual obligation to close on a specified date. With a refinance transaction, there is no such obligation to close and therefore a refinance applicant could postpone closing for a more favorable rate. Some lenders take the guesswork out of the process by allowing borrowers to lock and then float the rate down one time during the process.
Do I have to have life insurance to become qualified for a mortgage?
No you don't have to have life assurance to get a home loan. Life assurance is an important consideration when you're taking on the commitment of a home equity loan particularly if you have dependents.
What are super jumbo mortgages and how much higher are the payments?
A super jumbo loan exceeds $650,000. A super jumbo mortgage usually has a rate 1/4% higher than your average jumbo loan.
What is the difference in payments for non-owner occupied vs. owner occupied financing?
Conforming non-owner occupied rates are typically 3/8% higher than owner occupied interest rates. The equity requirement is usually higher for non-owner occupied bad credit mortgages as well, typically 20-30%.
Will the Tupelo's mortgage advisor require an appraisal of the property?
Yes, the property is the collateral for the mortgage, therefore an appraisal is almost always required and if a borrower pays for the appraisal he or she is definitely entitled to receive a copy of it.
What should I get in writing when getting a loan?
If your home loan or equity is primarily for personal or family needs, the Tupelo broker is required to give you a disclosure form before you sign the documents. This disclosure form should tell you the actual cost of the loan. It should include the finance charge, the annual percentage rate and the all the other fees included.
What is a cash-out option?
If you have enough equity in your property, you may be able to refinance with an amount greater than your current rate and keep the difference. you may be able to use the money for home improvement, debt consolidation, or whatever else you could like.
What are low down payment options for buyers who can not afford a 20% down payment?
Assuming you may be able to pay for high monthly home equity payments and have a high credit score, you may want to be able to find a low 5% or no down payment mortgage. but, you may have to pay a higher interest rate and fees than someone making a bigger down payment. If you put down less than 20%, you may have to either pay for private insurance or take out two separate loans.
How much Homeowner's insurance coverage do I need to get new mortgage?
A safe bet is to buy a guaranteed-replacement-cost
policy that will generally pay out 20-50% more than the face value of the policy to rebuild your home. This is also the preferred policy of lenders. A replacement-cost policy typically adjusts the amount of insurance each year to keep pace with rising construction costs in your area. It is important to note that local building codes require structures to be built to specific standards which could vary over time, if your home is severely damaged, you may be required to rebuild it to current codes. Even guaranteed-replacement-cost polices do not always cover this expense. However, many insurers offer an endorsement that will pay for the upgrading cost, it is a good idea to consider adding such an endorsement to your replacement-cost policy.
Is refinancing worth it?
Real estate refinance costs money. Like purchasing a new home, there are points and fees to think about. typically it takes at least three years to recoup the costs of refinancing your mortgage, if you don't plan to stay that long it isn't worth the money. But if your interest rate is high it can be smart to refinance it, if it's for the short term. If your mortgage has a prepayment penalty, this is another cost you'll incur if you refinance in Tupelo. Try our calculator for a quote.
What is the best way to find mortgage lenders?
It is a good idea to contact at least three to five companies for input on home equity loan programs and rates. You can do all of your shopping on-line or by phone. If there are any usual twists to your scenario, it is best to disclose as much information up front as possible to be certain you are making a proper comparison amongst brokers. When making comparisons you must be sure to compare subprime mortgages of similar terms.
Which is better a fixed or adjustable rate?
Depends, when rates are low, a fixed rate is the best bet for many purchasers. Over the next five, ten, or thirty years, interest rates are more apt to go up than more down. if rates could go a little lower in the short run, an ARMs rate will change up soon and you won't get much if you're planning to stay in the house more than some years. In the long run, ARMs are probably to go up, meaning many purchasers will be best off locking in a better fixed rate now and not taking the risk of much higher rates afterward.
I have never bought a house before. What should I do?
While there's lots to know and there are lots of people who may help. If you're purchasing, you may be able to make use of a real estate agent's services free. Interview some agents. They'll each have some tidbits of info to share. Talk to your bank or financial institution. They can also have some good info. While you're there, get pre approved for a home equity. This will assist you figure out your budget and if you're prepared for this important step, as well as if you may be able to pay for to purchase now.
Is it possible to reduce my closing costs?
If you are refinancing, you could reduce some costs by asking your Tupelo mortgage company
about them. Example: your lender could use your last home appraisal or your other credit reports or even recertify old documents for cheaper then getting new documents.
What Kinds of loans are available?
Fixed Rate Mortgage - interest rates and monthly deposits remain unchanged for the life of the loan.
What is APR?
APR is annual percentage rate and its purpose is to give borrowers a truer representation of the effective interest on their loans. APR factors in certain closing costs and fees and spreads these costs over the life of the credit, along with the note Tupelo rate, to arrive at a more accurate annualized percentage rate than the note rate alone represents.
How long will I have to repay the second home mortgage?
Some second loans could go for 20 years and some could require repayment in same year. You should discuss the repayment terms with Tupelo company and pick one
who offers the best terms for your needs.
What is a collateral?
When you ask for a subprime home loan, you're putting the home itself up as collateral. Naturally, the lender will want to know that the home is worth at least as much as the mortgage amount, which is why an inspection is needed. But they'll also want evidence you have the cash needed for the down-payment and closing costs. They'll seek confirmation of money from resources as well as bank accounts, stocks, bonds, mutual money, quotes, the sale of an present property or any gifts from family members that won't must be repaid.
What documentation will the lender usually require to procedure my Tupelo mortgage?
The answer depends upon the quality of your credit and the amount of equity you have in your property. On a common completely documented mortgage application where an applicant is seeking to meet the criteria depending on an employee's salary, the lender will require: one month's current pay stubs, W-2's for the previous two years and bank and investment account statements for the previous 2-3 months. If an applicant is self employed has a 25% or greater ownership in a business then extra documentation may be obliged.
What kinds of government loans are available to homebuyers?
Several federal, state, and local government financing programs are available to homebuyers. The two main federal programs are: VA loans and FHA loans.
Will the agent require an appraisal of the property?
Yes, the property is the collateral, therefore an appraisal is almost always required and if a borrower pays for the appraisal he or she is definitely entitled to receive a copy of it.
What is the difference between 0 point and no cost mortgage?
With no cost home loan, a borrower has accepted a higher rates, with the trade off that the company or broker will pay for all their non-recurring closing costs. With 0 point, a borrower has opted not to pay points to buy their interest rates down but will still be paying for their base closing costs.
What are the terms for Tupelo's mortgages?
Home mortgages are available with a fixed rate of interest for various terms, from six months to 10 years, with payments amortized over periods of up to 25 years. All our lenders offer variable rate home loans options.