Find detailed answers to frequently asked mortgage questions to help find the right home loan, understand the home lending process, locate the right mortgage lender and get the best mortgage rates and terms in todays mortgage market. Prospective mortgage borrowers can review frequently asked questions about home mortgages, mortgage applications, processing and approving mortgage applications, FHA loans, 30 year fixed rate loans or adjustable rate loans, Reverse mortgages, VA loans, loan appraisals, qualifying for a mortgage, mortgage payments and related residential mortgage lending questions.
By keeping informed with the right questions and answers, mortgage shoppers can experience a less stressful home loan process. The mortgage questions, answers and supporting, material are designed to focus on the borrower and help guide them through the mortgage loan process and their home loan options. Given that there are numerous factors that have to be considered when obtaining a new mortgage and purchasing a home, it is important for borrowers to ask a number of questions to be prepared for the process.
This is the location for consumers to explore mortgage information with prospective mortgage applicants, existing homeowners, mortgage professional and real estate service professionals. Use these mortgage tools to stay informed while moving through the process of purchasing a new home, comparing home loan options, shopping mortgage rates, preparing a loan application, and attending the loan closing. Reviewing mortgage questions and solutions are simple things that any consumer that is
searching for a new mortgage can do to help make the process as smooth as possible.
Deciding on the amount of down payment for a new home purchase is normally dependent on the mortgage borrower’s or buyer’s current savings. However, there are times when a borrower may qualify for a small down paym...Should I Use My Savings to Make a Bigger Down Payment
The best time to obtain a new mortgage is when you, as the borrower, are comfortable with the costs of obtaining a mortgage as well as with the requirements needed to get a mortgage approval. When it comes down to find...When Is The Best Time To Obtain A Mortgage
Most any recurring income stream can be used to qualify for a mortgage. The two most significant rules regarding income qualifications for a new mortgage are; the income is expected to continue into the future and a co...Can a Borrower Get Approved for a Mortgage with only Investments as their Source of Income
To waive escrows in the mortgage process means the borrower will be paying the real estate taxes and property insurance on their own. Escrows for taxes and insurance are included in most monthly mortgage payments. If...What Does it Mean to Waive Escrows
A $10,000 down payment can be a more than sufficient down payment for a home purchase depending on a variety of aspects regarding the home purchase and the borrower’s qualifications. The amount of the down payment ne...Can I Buy a House With a 10000 Down Payment?
The loan to value ratio (LTV) is used by mortgage lenders to measure how much equity a borrower currently has in a home or the amount of equity they will have when they purchase a home. The loan to value is one of the ...How do Mortgage Lenders Calculate the Loan to Value Ratios?
A mortgage refinance can be performed on any standard mortgage loan. Refinancing is the process of obtaining a new mortgage to replace or payoff an existing mortgage. The only restriction that would prevent a borrowe...Can Anyone Refinance their Mortgage?
Loan payoff amounts will often not match a borrower’s current balance on either their current loan statement or the balance obtained online. The current loan balance is the principal amount of the loan owed at the ti...Why is my Loan Payoff Amount Higher than my Current Loan Balance?
Mortgage calculators are extremely accurate for calculating mortgage payments, mortgage rates, loan costs, and other financial characteristics related to a mortgage loan. However, the results coming from a online mortg...How Accurate are Online Mortgage Calculators?
Cash out refinance mortgages allow a borrower a great deal of flexibility regarding how the proceeds from a loan can be used. A cash out refinance is the process of taking out a new mortgage for an amount that exceeds ...Can a Cash Out Refinance Be Used for Any Purpose?
If a borrower is applying for new home mortgage on a property that is in a designated flood zone, most all mortgage lenders are required by federal regulations to make sure there is adequate flood insurance covering the ...When Does a Mortgage Borrower Need Flood Insurance
A flood certification fee or flood determination fee is a charge to a mortgage borrower to determine if the home they are financing may be in a special flood hazard area where flood insurance is mandated.
Federal law ...What is a Flood Certification Fee?
The Case-Shiller Housing Index or Case-Shiller Index measures changes in the prices of single-family homes over time. The Case-Shiller index is a widely covered and used index to gauge the strength and price changes in...What Is the Case-Shiller Housing Index?
Lender paid mortgage insurance is when the mortgage lender obtains the required private mortgage insurance (PMI) coverage for a borrower and then passes on the cost to the borrower through a higher interest rate on the l...What is Lender Paid Mortgage Insurance?
There are a number of factors that can impact the mortgage rates and costs on an individual mortgage loan. Many of the factors that used in mortgage pricing are tools developed by mortgage lenders to evaluate the risk ...Why do Some Borrowers Pay Higher Mortgage Rates than Others?
The Home Mortgage Disclosure Act (HMDA) is regulation enacted by Congress in 1975 that requires most mortgage lenders to collect data about their housing related lending activity, report the data annually to the governme...What is the Home Mortgage Disclosure Act?
The mortgage lender is the financial institution, which may be a bank, credit union, or mortgage lender, that loaned the money directly to the borrower at the closing. The mortgage servicer receives and collects the mo...What is the Difference Between a Mortgage Lender and a Mortgage Servicer?
A Qualified Written Request or QWR is a request sent to a mortgage servicer in order to dispute billing and accounting errors that have arisen regarding a borrower’s mortgage loan account. The written correspondence ...What is a Qualified Written Request or QWR?
Home equity is the dollar value of a home that is owned by the homeowner and not encumbered with a mortgage or home loan. Total home equity is measured by taking the current market value of a home and subtracting the o...What is Home Equity?
Forced placed insurance is hazard insurance or collateral protection insurance that is purchased by mortgage servicer or mortgage lender on a borrower’s home when the lender or servicer can not verify there is sufficie...What is Forced Placed Insurance?
A mortgage and a deed of trust are very similar documents that are used to pledge a property as security for a home loan. These documents are used to create a lien on the property which is the security for the promisso...What is the difference between a Mortgage and a Deed of Trust?
A HomePath loan is home loan financing that is offered through Fannie Mae approved lenders and is available to purchase only Fannie Mae owned properties. HomePath mortgages are available for both owner occupied propert...What is a HomePath Loan?
HARP is an acronym for the Home Affordable Refinance Program. A HARP loan is a mortgage product created by the federal government under the Obama administration to help existing home loan borrowers refinance their home...What is the HARP Mortgage Program?
Mortgage underwriting is the process of determining the risk of a home loan by the mortgage lender. In assessing the risk of the loan, the lender is assessing the quality of the loan application and matching it with th...What is the Mortgage Underwriting Process?
NMLS is an acronym for the Nationwide Mortgage Licensing System and Registry. The NMLS is the system of record for the registration of mortgage loan originators and mortgage companies. The NMLS was created as result ...What is the NMLS?
An assumable mortgage is type of mortgage loan that can be transferred from the seller of the property directly to a new buyer. With an assumable mortgage, the home buyer has the ability to take over the existing mortg...What is an Assumable Mortgage Loan?
Negative equity is term that describes a homeowner’s position in which the value of their home is less than the balance owed on their mortgage or mortgages. A homeowner that is a negative equity position may also be ...What is Negative Equity?
A real estate appraisal is needed to establish the market value of the home on which a mortgage loan is based. One of the parameters used to determine the loan amount a borrower may qualify for is the value of the prop...Why Do I Need a Home Appraisal to Get a New Home Loan?
No cost mortgages are also frequently referred to as zero closing cost loans. With a no cost loan or zero closing costs loan, the borrower will not have to pay any closing costs upfront. There are no charges for proc...What is a No Cost Mortgage?
A mortgage payment is considered late when the payment is due and has not yet been paid. If a monthly mortgage payment is due on the first of the month and the mortgage lender has not received that payment by the secon...When is a Mortgage Payment Considered Late?
All income paid to an individual from the Social Security Administration (SSA) may be used to qualify for new mortgage loan with some limitations. The amount and receipt of the Social Security income must be verified b...Can Social Security Benefits be Counted as Income to Qualify for an FHA Mortgage Loan or other Home Loan?
Escrow payments are added to the monthly mortgage payment for the purpose of paying the real estate taxes, insurance and sometimes other payments private mortgage insurance or association fees connected with the home cos...In the Monthly Mortgage Payment, What Are Escrow Payments?
FHA mortgage rates are established by the mortgage lenders that offer these loans. The mortgage rates will vary between lenders and the final rate and costs for a specific FHA loan request will be established between t...How is the Mortgage Rate on an FHA Loan Established?