Mortgages & Loans

A mortgage closing is a process of finalizing the purchase of property or making of a mortgage loan. For refinances and home equity lines of credit and loans, monies are disbursed after the 3 business day rescission period has expired. Generally, for home equity lines of credit, checks are generally sent to the borrower 8 to 10 business days after closing. Closing costs are costs payable by either seller or buyer at the time of settlement when the purchase of a property is finalized, or by borrower when a loan is refinanced. They include expenses such as points, taxes, title insurance, mortgage insurance, recording fees and attorney fees. You will receive additional specific information about the types and amounts of closing costs applicable to your specific transaction when you apply for your loan.

The annual percentage rate, sometimes referred to as the APR is the cost of credit expressed as a yearly rate. It takes into account interest, points, and the other finance charges. Disclosure of the Annual Percentage rate is required by the Federal Truth in Lending Act. It allows borrowers to compare the costs of different mortgage loans and make an educated decision.

An adjustable rate mortgage is a variable rate mortgage with an interest rate that adjusts periodically according to the financial index it is based upon plus a margin. To limit the borrower's risk, the Adjustable rate mortgage may have a payment or rate cap. An example of this is if the mortgage has a annual cap of 2 % and a total cap of 13%. This means the mortgage can only increase by 2% maximum each year and could never exceed the 13% maximum ceiling.

Currently, there is no set 20% amount that you must put down. Some first time home buyer programs require as little as 5% down. In the past, mortgage lenders most often did require a 20% down payment. Generally, in the last 10 years many loan programs have been designed to help more people buy homes. Mortgage loans can now be tailored to fit each home buyer’s needs and financial resources. *For down payments of less that 20%, mortgage insurance (MI) will be required and associated costs will apply.

Forbearance ia an authorized period of time during which the loan holder allows the borrower to delay repayment because of financial difficulty.

A Cosigner is a creditworthy individual or entity, other than the borrower, who assumes responsibility for repaying a loan in the event the borrower does not pay.

A mortgage amortization schedule is a timetable for the periodic repayment of a mortgage loan. An amortization schedule indicates the amount of each payment that is applied to interest and principal. It also indicates the remaining balance after each payment is made.

A Biweekly Mortgage requires payments every two weeks instead of the standard monthly payment. The 26 biweekly payments are each equal to one-half of the monthly payment. For the borrower, it is a substantial reduction in interest payments because the mortgage is paid off earlier.