We are here to help you clarify the often confusing mortgage loan process.
Many of the pages you will find here are tailored with the mortgage consumer in mind. Armed with this valuable information, you will have the power to become a more informed consumer and pay less with your lower mortgage rate!
Typical Mortgage Terms
30-year Fixed Mortgage
Typical Refinance Terms
Question: What is a lock-in?
Answer: The lock-in represents the interest rate you choose and will be the interest rate used to factor your monthly payment. The lock-in secures the interest rate during the process of your loan approval as long as your loan is processed and closed prior to the rate expiration date. This date is given to you when you lock-in the rate.
Question: What is the difference between a fixed rate and adjustable rate mortgage?
Answer: With a fixed rate mortgage, the interest rate and payment remains constant over the life of the loan. Whereas, with an adjustable rate mortgage, the interest rate can either increase or decrease, based upon the terms of the loan. This could cause the monthly payments to increase in order to have the loan paid in full by maturity.
Question: What is a convertible mortgage?
Answer: A convertible mortgage allows you to convert your adjustable rate mortgage to a fixed rate mortgage for a flat fee during a specific time frame. This fee can range from $250 - $500 per lender.
Question: What is a balloon mortgage?
Answer: A loan with a fixed rate payment for the first five to seven years of the loan, then a lump sum payment is due on the balance of the loan at a specified date when the balloon loan matures.
Question: What is a conventional loan?
Answer: A mortgage not guaranteed by VA or insured by FHA, FMHA or State Bond Agencies.