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Denver Mortgage

November 18, 2011

Are you looking for:

a home loan for a purchase?

a home mortgage refinance to:

  • lower your interest rate?
  • do home improvements?
  • take cash out?
  • lower your payments?
  • change to a 10, 15, 20 year loan? should be your first stop!

All of our mortgage lenders have gone through an intensive interview process and an eighteen point pre-screening before they were allowed to join our team.

The purchase of your home and the subsequent financing of that purchase are major decisions.
Should you use a bank for your home loan or is a mortgage broker the better way to go?

What are points? So many questions about mortgages and home refinancing and we have the answers!

Here are some questions that you should ask your mortgage or home refinancing company before you sign on the dotted line.

What type of mortgage loan is right for you?

There are many mortgage options out there and you should find a reputable lender that is willing to go through all of your options.   May we suggest a team member?  A reputable mortgage broker / lender will get enough information about your personal situation before suggesting a mortgage plan.

If you are considering an interest rate that is adjustable make sure you ask about the following:

  • Margins, Index, the Highest Rate (cap),
  • Maximum annual adjustment
  • Adjustment frequency.

Don’t know what Discount Points and Origination Fees are?

Each point that a mortgage lender charges is equal to one percent of the loan amount. For instance, two points on a $100,000 loan cost is $2,000.

Please be aware that some mortgage companies and home financing companies charge origination fees in addition to points.  “Points” are used to buy down the interest rate.  This means the more points that you pay, the lower your interest rate will be and the lower your mortgage payments will be!

Let’s talk about all the costs associated with your home loan.  These costs can include fees that go to your mortgage broker, and fees that go to a third party vendor.  They may include Appraisals, credit reports, lenders title policy, pest inspection reports, escrow, recording fees and taxes.   When talking with mortgage brokers or home refinancing companies, it’s always good to get a good faith estimate on the fees that they will charge.  The lender is required by federal law to give this to you and it’s a good way to evaluate whether your home loan lender is giving you the best deal.

So how long can you hold a mortgage broker or home lender to this good faith estimate?  Basically, three days after you’ve applied for the loan.  Take into consideration that the mortgage broker or lender is not required to guarantee your estimate.  There is pressure on lenders and mortgage brokers to guarantee their good faith estimates and if your home financing professional is not willing to do this, you may want to look elsewhere for your home loan.

Because interest rates change on a daily basis, you may want to lock in the rate of your loan.  Some mortgage brokers and home loan lenders charge one point to do this, but it can save you in the long run.  Some questions to ask your home loan professional?  Is there a fee to lock in my interest rate?  Does this lock protect all the home loan costs or just the interest rate?  How long will the lock be in place?  Ask for the lock in writing.  If you don’t want to pay the extra point, you can always pay the prevailing rate and points on the day your home loan funds.

Don’t forget to ask about pre-payment penalties.  We go into home loans and home refinancing thinking that we will be in our homes for For – EV –ER!  For most of us, it’s simply not true.  The last thing you want is to sell your current home and pay off the mortgage only to find that you have a pre-payment penalty that is going to take money out of your home equity.

So, working with the right home loan professional or mortgage broker is key when you’ve found your perfect home.  If you are looking for a home loan, a reverse mortgage, a mortgage broker, to get a quote on mortgage rates, refinancing of your current home loan, make it first! Mortgage, Loan, Home Loans, Mortgage Broker, Refinance, Second Mortgage. Your resource for Second Mortgages, Mortgage Brokers, Mortgage Lenders, Home Loans, Mortgage Refinancing, Reverse Mortgages, Home Path, First Time Home Buyer Loans, Home Improvement Loans, Streamline Refinancing, FHA loans, Interest Rate Reduction Loans (IRRL’s) and VA Loans.