Frequently Asked Mortgage Questions
Here are the answers to some often-asked questions about mortgages and the mortgage process:
Is there a minimum amount required for a down payment? No, although you may be required to get private mortgage insurance if your down payment is less than 20 percent. Many government-backed loans actually require little or no down payment.
What does APR stand for? APR is your annual percentage rate. It includes your interest rate, any points you pay, your mortgage insurance, and any other up-front fees. In simple terms, it’s what you’ll actually end up paying in addition to your principal.
How much will my closing costs be? Although some charges and fees are standard, closing costs can vary from lender to lender and can depend upon the type of loan you’re getting. Also, each state has different regulations.
If I get a pre-approval, does that mean I have to use that lender? No. A pre-approval is an estimate of the amount a lender is willing to lend to you, based on your income, credit and other factors. There is no obligation attached to a pre-approval.
What is a jumbo loan? This is a type of loan that exceeds a certain loan limit set by the Federal Housing Finance Agency. Jumbo loans are considered riskier for lenders and thus have stricter qualification rules.
When will I be able to refinance if interest rates go down? Generally, you can refinance at any time to get a lower interest rate or change the type of mortgage that you have. Check with your broker or lender to see if refinancing makes sense for you.
What is considered a good credit score? As a general rule, a “good” credit score is usually considered at least 700-720 or above. However, this is not set in stone because each lender has different standards for different types of loans.
As the saying goes, no question is a bad question, so don’t be afraid to call your mortgage professional with any questions that you may have.
For more than 25 years, Omega Financial has been serving mortgage clients in Massachusetts. Our brokers have approximately 50 years in the mortgage business. You always will receive fast, courteous, and accurate information. Omega Financial, Inc. is a company duly licensed to operate in Massachusetts as a Mortgage Brokerage. We are located in the Town of Norwood, Massachusetts where we have been operating as Omega Financial Incorporated since 1988.
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