1. WHAT TYPE OF LOAN WILL FIT ME THE BEST?
2. WHAT IS APR?
3. WHY AND HOW DO INTEREST RATES CHANGE?
4. WHAT HAPPENS ONCE I AM PREAPPROVED?
5. WHEN SHOULD I CONSIDER REFINANCING?
6. WHAT IS TITLE INSURANCE?
7. WHAT IS MORTGAGE INSURANCE?
8. HOW DO I GET PRE-APPROVED?

WHAT TYPE OF LOAN WILL FIT ME THE BEST?
Call me for a loan evaluation at 732-809-8595.

WHAT IS APR?
The Annual Percentage Rate or APR is the cost of the loan in percentage terms, taking into account various loan charges, of which interest is only one such charge. This is not the Note rate for which the borrower applied. Other charges which are used in calculation of the Annual Percentage Rate are Private Mortgage Insurance or FHA Mortgage Insurance premiums (when applicable) and Prepaid Finance Charges (loan discount, origination fees, prepaid interest and other credit costs). The APR is calculated by spreading out these charges over the life of the loan, which result in a rate higher than the interest rate shown on your Mortgage/Deed of Trust Note. If interest was the only Finance Charge, then the Note rate and the Annual Percentage Rate would be the same.

WHY AND HOW DO INTEREST RATES CHANGE?
Many people are surprised to learn that rates change on a daily and sometimes hourly basis. Interest rates fluctuate in response to changes in the financial markets. The bond market is generally a good indicator of the general trend of interest rates.

WHAT HAPPENS ONCE I AM PREAPPROVED?
You are ready to buy a home! Remember that it is very important to inform us of any changes in the financial information that was provided at the time of approval, as it may make a change in the amount or type of loan that you can qualify for.

WHEN SHOULD I CONSIDER REFINANCING?
The old rule of thumb was at least 2%, but this is no longer the case. Many different individual factors need to be analyzed to determine if refinancing is right for you, such as the length of time you intend to stay in your home, or the type of loan you currently hold. We are always happy to provide a recommendation to you for your particular circumstances.

WHAT IS TITLE INSURANCE?
It is a policy provided by the title company guaranteeing the accuracy of the title work done on your home at the time of purchase. As a buyer, you are required to purchase a lenders policy of title insurance as part of your standard closing costs, which only protects the mortgage company. You may also choose to purchase an owners policy, which would protect you against any loss in the event of any legal issues relating to the title of your home.

WHAT IS MORTGAGE INSURANCE?
This is generally required in one form or another when the down payment is less than 20%, and protects the lender in the event of loan default. The lower the down payment, the higher the risk for the lender, and thus the higher the monthly premium. Depending on your particulars, there are ways in which mortgage insurance can sometimes be avoided at purchase, or dropped altogether at some point in the future.