A Guide To Lock-Ins

The interest rate market is subject to constant swings without advance notice. Locking a rate protects you from the time that your lock is confirmed to the day that your lock period expires.

Points

Points are up front mortgage interest fees paid on a loan to reduce the initial interest rate. For example, a one-point loan will always have a lower interest rate than a zero-point loan. Therefore, paying points is a trade-off between paying money now versus paying money later.

Typical Closing Costs

We will of course supply you with a detailed analysis of your fees in a Good Faith Estimate.  We will also supply you with a Truth in Lending form, which will provide you with a disclosure estimating the costs of the loan you have applied for, including your total finance charge and the Annual Percentage Rate (APR).

No Cost Out of Pocket

A no closing cost out of pocket option can work extremely well when the rate market is declining and the borrower may anticipate refinancing fairly quickly. No closing cost out of pocket loans can be used effectively to free up more cash for repairs or other uses.

Private Mortgage (PMI)

PMI is extra insurance that lenders require for loans that are more than 80 percent of their new home’s value. In other words, buyers with less than a 20 percent down payment are normally required to pay PMI.

Loans for Vets

As a benefit to veterans, the Department of Veteran Affairs guarantees repayment of loans made to veterans with no down payment, in most cases, and liberal qualifying guidelines. This makes it easy for veterans to finance their homes.

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