FAQs

  • A rate lock is a lender's guarantee of an interest rate for a set period of time, usually between loan application and loan closing. A lock period can range anywhere between 15 days to 90 days during which time you, as a borrower, are protected against rate fluctuations. Rate locks can be expensive for lenders, and so it is usually true that the longer the lock-in period, the higher the cost is for you. Our experienced loan specialists can help you understand which choice may be better for you.
  • Absolutely. With the large variety of loan programs available today, there's many different ways you can finance your home. With a no cost or minimal cost loan, you can see immediate savings in your payment amounts, and you won't have to sacrifice your savings or equity to get a great rate. We offer no down and low down payment home purchase options and no cost refinance programs. Just ask one of our friendly loan specialists for our flexible financing options or view our loan choices page.
  • The length of the mortgage process depends on a number of things. For example, some mortgage transactions are subject to a three-day legal "right of rescission," which starts the day you sign the disclosure document. This legal right automatically could add three days onto your mortgage funding. Also, specific types of mortgage loans have pre-determined timeframes. The closing date on a purchase loan is determined by the escrow closing date agreed upon by the buyer and the seller or builder. Usually, purchase escrow periods range between 30 to 90 days. On refinance transactions, the process can take anywhere from 5 to 30 days depending on whether there are any special circumstances surrounding the transaction.
  • No one loan product is objectively better than another. The best mortgage for you depends on a variety of factors, including your financial situation and housing goals. Generally speaking, adjustable rate mortgages (ARMs) offer lower initial interest rates than fixed rate loans, but also have the potential to fluctuate every month, every six months, or every year, depending on the type of adjustable mortgage you get. An ARM therefore may be more attractive to homeowners who plan to sell their home in the timeframe before the adjustable rate surpasses a fixed-rate loan. On the other hand, homeowners who plan to remain in their home, or who want more stability in their rate and monthly payments, may find a longer-term 15, 20, or 30 year fixed rate more attractive. A fixed interest rate provides homeowners with a stable mortgage payment that does not change. Ask one of our loan specialists about HomeLoanCenter.com's adjustable, short term fixed, and long term fixed rate loan programs to see what can best help you with your individual goals.
  • Annual Percentage Rate, or APR can be defined as the annual cost of a loan, expressed as a yearly rate. APR is designed to measure the "true cost of a loan," and to prevent lenders from hiding fees from you. Although the rules to compute APR are not clearly defined, the fees it generally includes are pre-paid interest, points, origination fees, and private mortgage insurance ( PMI), so APR will be slightly higher than the actual interest rate on the loan. However, different lenders calculate APR differently, so you want to be careful when you are shopping for your loan to make sure you understand what fees are computed. It can be more practical for you to compare lenders by the interest rate they offer for the same loan type and term, and then compare the applicable points and total closing fees.  
  • Loan-to-Value (LTV) refers to the amount of the loan as a percentage of the current market value of your home. You can calculate your LTV fairly easily by dividing your existing loan amount by current value of your home. For example, if you borrow $200,000 and your home is valued at $300,000, your loan to value is 66%. LTV is important when it comes to qualifying for a refinance loan, and will determine whether you will be required to get private mortgage insurance ( PMI) on your purchase or refinance transaction.
  • Private mortgage insurance (PMI) is purchased by a buyer when the down payment is less than 20% of the purchase price or the loan amount is more than 80% loan-to-value. Mortgage insurance is designed to protect the lender against default. Homeowners will continue to pay mortgage insurance even after they refinance their home, as long as the loan-to-value remains above 80%.  
  • An escrow or impound account is set up by your lender during the loan closing to pay property taxes, fire and hazard insurance premiums, mortgage insurance premiums, and other escrow items on a monthly basis. Escrow accounts make sure that there is always enough money to pay these bills when they are due, and that these important payments are made on time. Escrow accounts also protect homeowners like you from having to come up with several large, lump sum payments at different times throughout the year.  
  • Mortgages made by lenders and banks are generally sold on the secondary market to produce cash so the lenders can make more mortgages. The largest purchasers on the secondary market are the Federal National Mortgage Association (Fannie Mae), and the Federal Home Loan Mortgage Corporation (Freddie Mac). These two organizations, called government-sponsored enterprises, or GSEs, were originally created by the government to make mortgages available to more people with low and moderate incomes, although both organizations are now privately run.  

    Freddie Mac and Fannie Mae have specific requirements for the loans they will purchase from banks and lenders, including a loan limit for single-family homes in the United States. Loans within this limit are the "conventional" or "conforming" loans you may hear about in the news.
  • Conforming loans have a well-established secondary market which is provided by the two government sponsored entities, Freddie Mac and Fannie Mae. A jumbo loan is any loan that exceeds the conforming loan amounts and the rates for these loans are typically higher than for conforming loans.
  • Buying a home gives you personal benefits such as a sense of buying a stake in your community, and pride for achieving the American dream of home ownership. However, there are some strong financial benefits as well.  

    One of the largest benefits of homeownership is the tax savings you receive. Interest payments on a home mortgage are 100% tax deductible (consult your tax advisor to learn more). And as you continue to pay your mortgage payment, you are building equity in your home, as opposed to a rent payment that goes into somebody else's pocket. You build equity faster as the value of your home increases, and you can borrow against that equity to pay off debts, send your child to college, make home improvements, or take a much needed vacation. With today's low or no down payment options, affording a home is a lot easier than you may think.
  • Bluerayconsultants.com offers a variety of different loan programs including first-time home buyer programs, and low or no down payment options. Imagine getting into your very own home with little or no money down!  

    Each loan program we offer has different rules about the down payment amount required. Down payments can also vary by the amount you want to borrow, as well as factors like credit history. To find out what options we have for you, contact one of our experienced loan specialists for a no-obligation quote, or click Contact Us.
  • You don't have to apply for a loan before looking for a property, but it's a good idea to get pre-qualified or pre-approved for a home loan before you find a home to purchase. When you get pre-approved, you know ahead of time how much house you can afford, what you can expect your monthly payment to be, and how much money you will need for the down payment and settlement costs at closing. Also, many realtors will take your offer more seriously if you have been pre-approved.
  • Private mortgage insurance (PMI) is required for all loans that exceed 80% loan-to-value (LTV). If you put less than a 20% down payment on your purchase loan, you will likely be required to pay mortgage insurance until your LTV reaches 80% or below. Once you dip below 80% loan-to-value, you can refinance your home loan to eliminate the insurance. HomeLoanCenter.com may be able to help you avoid the expensive costs of PMI with one of our home mortgage programs. Give us a call or apply online to find out how.
  • You may be tired of making one mortgage payment for your first mortgage, and another payment for your second mortgage. Perhaps it's time to reduce your current interest rate to a lower fixed or adjustable rate, or maybe you have an adjustable rate that you want to convert into a fixed rate mortgage. You may want to cash out some of your equity, or lower your overall mortgage payment. Refinancing may also allow you to get rid of private mortgage insurance (PMI) if you now have 20% equity in your home. To talk about the possibilities, call one of our loan specialists or apply online for a no-cost, no-obligation quote.
  • Absolutely. With the wide variety of loan programs available today, you may very well be able to refinance your existing loan at no cost or minimal cost to you. You will see immediate savings, and you won't have to sacrifice your bank account or equity to get a great rate. Many people have taken advantage of our no cost refinance programs. Why shouldn't you be one of them? Ask one of our experienced loan specialists about our flexible financing options, or apply online to get matched with a loan program that fits your goals.
  • A lower interest rate will save you money if you plan to stay in your home for more than a few years. You can use our mortgage calculator to see how much you will save by refinancing. However, even if you don't pick a lower interest rate, refinancing can still save you money by allowing you to roll in higher interest debt, or giving you the flexibility of and interest-only option.
  • Bluerayconsultants.com does not provide any loan programs at this time that allow you to refinance your home for more than it is worth.
  • If you meet two specific conditions, you may be able to remove mortgage insurance by refinancing your new home. You can qualify if you have made your mortgage payments on time every month for a specific time (usually a year), and you have reached a point of having 20% equity in your home, either through appreciation or paying down your mortgage. Calculate the available equity in your home with our Mortgage Calculator
 
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