How often do interest rates change?
Interest rates change daily and sometimes several times daily. Rates are
also dependent on the type of mortgage loan, the loan balance, loan to
value ratio, credit worthiness of the customer and other factors.
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What is a point?
Points are prepaid interest which may be charged by the lender for the
purpose of reducing the interest rate. If points are paid, they are
normally payable at the time of closing. Each point is equal to 1% of
the principal loan amount. For example, $1,500 equals one point on a
$150,000 mortgage. By paying points, your interest rate will be reduced,
resulting in lower monthly payments.
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Do I need to pay an Origination Fee?
The origination fee is a negotiated percentage of the loan amount to
cover the cost of originating the mortgage loan.
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Can I finance all of my closing costs?
Most of our products allow you to finance closing costs into your new
mortgage loan as long as there is enough equity in your property.
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How much are closing costs?
Closing costs vary from state to state, and title insurance varies from
area to area. These variances, along with your loan balance, will affect
your final closing costs. Upon completion of your application, your
Mortgage Loan Originator will send you a Good Faith Estimate. Your Good
Faith Estimate will give you an estimated breakdown of closing costs
related to your refinance.
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Should I lock in an interest rate now?
You have the option to lock in an interest rate or float. Since no one
person can accurately predict what rates will do, the decision to lock
or float must be yours.
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Will you sell my loan?
Transfer of servicing is a common business practice in the mortgage
industry and is not based on personal or payment history reasons.
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What is the best way to compare rates from lender
to lender?
When shopping for rates, we suggest that you get a Good Faith Estimate
from all lenders you are shopping and compare rates and fees (i.e.
apples to apples). This ensures that there are no hidden costs or fees
and allows for a fair comparison between lenders. You may also want to
compare the APR on the Truth in Lending Statement. This indicates the
total cost of doing the loan.
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How long will the loan process take?
It will take approximately 45 – 60 days to process your loan. Once we
receive your loan application, the Client Coordinator assigned to your
loan will be in continual communication with you regarding your loan
status.
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Can I pay my own taxes and insurance?
For FHA and VA loans the government requires the lender to escrow for
those fees. On Conventional loans at 80% or below, you may pay your own
taxes and insurance. However, there is an additional fee if you do not
maintain an escrow account.
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Why do I need new title work; I live here already?
A new title search is required to ensure there are no obstacles (liens
or lawsuits) to obtaining clear title to the property.
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What if I make less money than I did or have
changed jobs since I first obtained my mortgage?
Global Equity Lending does offer a variety of Refinance products that
require no credit qualification.
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I want to borrow more money to use for repairs to
my home. Can I do that?
Yes, most of our loan types do allow for cash out. However, there must
be sufficient equity in the property to cover the cost of the repairs
and the property must appraise at an acceptable value before the repairs
have been completed
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