Frequently Asked Questions

01. How are mortgage rates determined?TOP

Although there are a slew of different factors that affect interest rates, the movement of the 10-year Treasury bond is said to be the best indicator to determine whether mortgage rates will rise or fall. Though most mortgages are packaged as 30-year products, the average mortgage is paid off or refinanced within 10 years, so the 10-year bond is a great bellwether to measure interest rate change.

02. Can you sell your house and retain a prior mortgage?TOP

Homeowners cannot sell their homes outright and still retain the mortgage for that home. The proceeds from the sale of the home are supposed to pay off the prior mortgage and, furthermore, sellers should not want to retain financial obligation for a home they no longer own.

Special circumstances can make it possible to retain mortgage debt in another form after selling the home, but in most instances, this is not the case.

03. How much can I borrow?TOP

Some of the variables a bank will look at include, first and foremost, your income and security of your employment. Next a lender will look at your outgoings or expenses. They will want to know about any loans you may have or any credit card and installment debt, such as a car payment. So these are the two main factors that would determine on how much you can borrow.

04. How do I negotiate a mortgage refinance if I’ve lost my job?TOP

Step 1: Ask a trusted family member to cosign the loan for you
Step 2: Build equity in your home. If you want to negotiate a mortgage refinance after you lost your job, the bank will want to know how much equity is in your home.

Step 3: Search for a job

Step 4: Make fast money.

Step 5: Shop around. There are many companies out there that may be willing to refinance your mortgage.

05. When should I refinance my mortgage?TOP

You should only refinance a mortgage when it makes financial sense to do so. For example, if you can get a lower rate so as to decrease your monthly mortgage payments. Your best bet is to talk to a financial specialist to see if this makes sense for you.

06. Who offers the best deal on a mortgage?TOP

Lets make one thing very clear: There is no such thing as the “Best Mortgage Deal” it is completely dependent on your individual circumstances. So don’t believe the hype and sales patter of the typical mortgage salesman; research the mortgage market and contact as many mortgage providers as you wish.You may even want to use the services of an independent mortgage broker.

07. What happens when a bank forecloses on a mortgage?TOP

Bank foreclosures differ from state to state, and different laws may require lenders to go through different processes or begin long waiting periods, but the basic steps remain the same throughout the United States. Typically, banks will only go to court for a foreclosure when no other arrangement can be worked out. Foreclosure is possible because homebuyers put the house up as collateral for their loan.

08. Can I get a mortgage loan after a foreclosure?TOP

You can get a mortgage loan after a foreclosure. It usually take 10 years after filing bankruptcy; for much better rates wait at least four years and for a FHA loan you only have to wait two years according to their guidelines.

09. Are mortgage interest rates going down any time soon?TOP

There are so many things that can arise unexpectedly, and that makes it very hard to predict mortgage rates. But you can base your decisions from other peoples reaction and the current status of the industry. From that, you should be able to form your own conclusions.

10. What is a second mortgage?TOP

A lot of Americans have second mortgages. A second mortgage is money that a person takes from a bank with the equity they have in their home. It is the same as a regular mortgage but it is a second one.

11. How do I know if I’m delinquent on my mortgage?TOP

Technically, a payment is considered late if your lender receives it after the due date specified in your mortgage.Almost all mortgagesgive you a grace period, usually fifteen days,to get the payment to them; if it is not received by the end of the grace period, the lendercan charge you a late fee.The grace period is exactly that – a grace period. Without a grace period for the payment to be mailed,received and posted to the account,most people would incur a late fee.

12. How are mortgage payments calculated?TOP

Your monthly mortgage payment includes monthly principle and interest, property tax, homeowner’s insurance and PMI, or private mortgage insurance if you are required to carry it. Principle and interest is based upon the mortgage amount, how many years the mortgage is for, and the interest rate on the mortgage. Property taxes are calculated by dividing the annual taxes for your home by the number of payments you make in a year. Homeowner’s insurance and PMI are each based upon the rate you receive from your insurer, again divided by the number of mortgage payments you make in a year. Adding all of these numbers together determines your actual mortgage payment