What are conforming loans? What is a jumbo mortgage? The Federal Housing Administration (FHA) was established to advance opportunities for Americans to own homes. By providing private lenders with mortgage insurance, the FHA gives them the security they need to lend to buyers who might not be able to qualify for conventional loans. Some FHA loans are available with as little as 3% down payment. VA loans are guaranteed against default by the borrower by the U.S. Department of Veteran Affairs. VA loans require no down payment and are offered exclusively to United States military personnel who are active, discharged or retired. VA loans often carry lower interest rates than conventional loans. How do I know which type of mortgage is best for me? The right type of mortgage for you depends on many different factors including, but not limited to, your current financial situation, expectations, objectives and comfort level. Our mortgage consultants will work with you to find the mortgage that best suits your needs. How much do I need for a down payment? The down payment required varies based on what program you qualify for and what mortgage arrangement you choose. Currently, FHA loans will allow as little as 3% down and VA loans allow 0% down. Other loan arrangements which include Private Mortgage Insurance (PMI) or subordinate financing can also greatly reduce the down payment required. Cambria mortgage consultants can discuss all these options with you. Closing costs usually include an appraisal fee, title and recording fees and other costs associated with preparing and closing the loan. They may also include "points" and other fees such as one-year homeowner's insurance and Private Mortgage Insurance (PMI). These costs can sometimes be financed within the loan. Closing costs are in addition to your down payment and can vary slightly depending on your loan. What is PMI? What are discount points? What is a good faith estimate? In order to close a mortgage you must lock in a rate and loan program. Locking your interest rate means your lender guarantees the rate on your loan even if market rates change. Typically, the longer the lock on your mortgage, the higher the points or the interest rate of the loan. This is because the longer the lock, the greater the risk for the rates to increase prior to closing. Why would I want to refinance my current loan? What is a cash-out refinance? Will the lender require an appraisal of the property? If so, will I receive a copy of it? |