What is a rate lock?

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… Read More

What is a good faith estimate?

A good faith estimate is the list of charges that the lender is obliged to provide the borrower within three business days of receiving the loan application. These mortgage charges, also called settlement costs or closing costs, cover every expense associated with a home loan that a buyer will encounter,… Read More

What are discount points?

Discount points are prepaid interest, which you can pay to your lender at closing in exchange for a lower interest rate on your mortgage. Paying discount points is often called “buying down” your rate. Read More

What is PMI?

Private mortgage insurance (PMI) insures the lender in case the buyer defaults on the loan. The lender requires PMI when the buyer’s down payment is less than 20% of the purchase price of the home. A Cambria mortgage consultant can discuss this option with you. Read More

What are closing costs?

Closing costs usually include an appraisal fee, title and recording fees and other costs associated with preparing and closing the loan. These costs can sometimes be financed within the loan. Read More