FAQ – Frequently asked mortgage questions
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We are here to listen to your goals and help you decide the best financing option for you. Whether it be evaluating the pros and cons of refinancing, helping you choose the best mortgage for your situation, or guiding you through the refinance process, you can count on our expertise and commitment to exceptional service for a seamless home loan experience.
How much is an appraisal fee?
An appraisal fee is usually determined by the type of property and the price of the property. The norm for a single family appraisal, fee if the property is not greater than $500,000, would be in the $400-$450 range. If the property is priced above $500,000 expect to pay an additional $100-$150 more in fee.
For multi-family appraisals, each unit represents an additional $100, so an appraisal fee for a two-family home would range between $450-$550, and that goes the same for a 3 Family $550-$650 and 4 family $650-$750.
Coops and Condos tend to have an average of about $400-450 for a full appraisal.
Commercial property appraisals range between $2500-$5000
How much are closing costs?
Closing costs on an average are about 4-5% of the loan amount. Some states vary because of the state mortgage tax, some states have them and some don’t.
So if the loan amount is $200,000 lets multiply that by 5% and we get $10,000, that’s probably correct in a state that has a high mortgage tax cost.
Can I get a mortgage if I don’t have a job?
No, you must have employment.
However, we do offer no-income check mortgages where we do not verify income, but the borrower must have employment.
Also, for those who are 62 years of age and older can obtain a mortgage without employment also known as a reverse mortgage.
What is the minimum down payment required for a first time home buyer?
The minimum payment required for first time home buyer is 3%.
However, we do offer a program that requires only 1% down payment, and that’s only for single-family residences.
How much down payment required for an investment property?
Down payment for investment property requires between 20-30% down.
Can I get a mortgage with bad credit?
Yes, we can finance borrowers with as little as 500 credit scores.
Can I get a mortgage after a foreclosure?
Yes, we have programs that can finance a borrower that has been out of foreclosure for over 12 months.
Can I get a mortgage if I had a short sale?
Yes, we have mortgage programs that will allow financing after one year out of a short sale.
Can I get a mortgage if I had a bankruptcy?
Yes, two years after discharge for chapter 13 and four years for chapter 7 and 11.
Is It Time To Refinance?
When lower mortgage rates change the economic climate, it’s always smart to ask yourself if your current home financing arrangement is still working optimally for you.
How far below your current rate do interest rates have to go before refinancing makes sense?
That depends on how long you plan to stay in your home. Usually, the shorter the time, the greater the spread has to be.
How much time and money does it cost to refinance?
You can expect to go through a mortgage application process with fees and costs that are similar to those of your original mortgage. When you refinance your mortgage, you’re actually replacing it with a brand new loan. But this time your experience puts you ahead of the game. Because you’ve been through it before, knowing exactly how to prepare and what to expect will help shorten the process.
Should you choose an ARM or a fixed-rate mortgage?
ARMs or adjustable-rate mortgages adjust periodically, either up or down according to changing market rates. That means even at a below-market start rate, it’s possible that your ARM interest rate could soon exceed the current rate. However, if you plan to remain in your home for a short time, an intermediate ARM, with a low introductory rate that remains fixed for several years before the first adjustment, may be best for you.
On the other hand, many homeowners with ARMs choose to refinance with fixed-rate loans to lock in a lower rate and reduce future interest rate risk. It depends on your individual situation.
We offer a wide range of mortgage options that can be tailored to a variety of needs. Ask for our free Refinance Worksheet, which can help you pinpoint the most suitable mortgage options, or even better, let us help you in person.