Are the rates the same whether I’m buying a home or refinancing?
Why are purchase and refinance points different?
How long are the rates you post valid?
How long can I lock my mortgage?
What if I need a longer lock than 30 days?
How do I lock in my mortgage?
What are your fees?
What other costs are there?
How do I use negative points?
Do I need to have another appraisal done if I have a recent appraisal?
Can I use mortgagefool.com
when I am buying a new home from a builder?
Since I’m near one of your offices, can I do the loan application in person rather than on line?
Are the rates the same whether I’m buying a home or refinancing?
The quotes we post are for home purchases. If you are refinancing add 0.25 to the points (not the interest
rate!) to get the refinance quote. For FHA/VA refinances add 0.5 to the points.
Why are purchase and refinance points different?
Wholesaler lenders offer us purchase incentives that are reflected in our quotes. Why? As a percentage, purchase
money locks close more often than refinance locks do!
How long are the rates you post valid?
Like any other commodity, the price for money changes all the time, just like soybean futures or pork bellies.
We get the day’s rates from dozens of wholesalers mid to late morning, shop them for the most competitive and
post them around 1:00 PM every business day. Should the wholesalers re-price during the day, we try to update
the quotes to reflect the new rates. Unless such a price change
occurs, the rates are good through the end of the business day.
How long can I lock my mortgage?
The rates you see posted on the mortgagefool.com web site are for purchase settlements occurring within 30 calendar
days of locking. Longer locks are available for additional cost. Please email for specifics.
What if I need a longer lock than 30 days?
If you want to lock your rate in but can’t settle for say, six weeks, the points will be slightly higher.
Typically, a 45 day lock will add 0.25 to the points—not the interest rate! Add another .25 point
(total of .50 points!) going from a 45 day lock up to a 60 day lock. Email us for
specifics for your situation.
Another option: Say you’ll be settling in eight weeks because the seller needs that much time to get moved out. You could make loan application to get the process started and have your mortgage float up and down with the market until you’re 30 days from settlement. 30 days before settlement you can lock your mortgage instead of paying the additional points for the longer lock. On the other hand, if rates are volatile and the trend is upward, an extended lock may make more sense for you.
How do I lock in my mortgage?
To lock your mortgage, we must have received three things:
(The appraisal and credit report usually need to happen right away whether you lock or float, and we need your payment in hand to order these services.)
You may decide to lock your mortgage right after we receive your signed application or after you’ve floated up and down with the market. All you need to do when it’s time for you to lock is email or phone us, telling us to lock your mortgage. Should you use email, be certain we have replied well before the 4:45 pm cut off or a phone call is required.
What are your fees?
Our lender fee is $950.00. It is important to note that this includes all fees from the lender (other
lenders may call this tax service, underwriting review, tax service, processing, etc.) except
the appraisal. A reasonable estimate for the appraisal is $400 -
450, though appraisals for upper bracket properties,
unique homes and homes with lots of land usually cost more. State laws require that we only charge you what
we are charged for the appraisal and credit report.
As you’re loan shopping, make sure that in addition to interest rates and points, you also compare lender fees. Look for charges such as those listed above. You’ll find a lot of variation between lenders. It does no good to offer low rates/points if the lender fees are $2000!
What other costs are there?
There is one other category of costs, the settlement fees. The settlement fees are for the services of the closing
company or attorney, the title work and title insurance, and county and state fees. You select who does your
settlement and can get their costs directly from them.
There two other things that must be paid at closing; prepaids, and escrows. The prepaids are for things that you’re required to pay at or before closing such as buying hazard insurance, interest on your new mortgage from the date of closing to the end of the month, and in some cases, mortgage insurance. Escrow accounts are established to set up hold the money used to renew your insurance and pay your real estate taxes. The time of year and point in the month you close will drive how much is collected for the prepaids and escrows.
How do I use negative points?
In exchange for paying a slightly higher interest rate, instead of paying points, you can have negative points
that are paid to you at the time of settlement to be credited toward your closing costs. Sorry, you can’t
receive cash from your negative points unless it’s to reimburse you for costs of purchasing you’ve paid in advance
like your appraisal.
There may be limits on the number of negative points you can have, depending upon which state you’re in. That’s certainly one of the things we’ll discuss with you.
We can help you weigh the pros and cons of the different loan types and structures for your needs—maximum buying power, lowest monthly payment, equity accumulation or conserving your up-front cash.
Do I need to have another appraisal done if I have a recent appraisal?
There are a number of different types of appraisals, so it will depend upon what type was done and how
current it is. We can usually work with the appraiser to have the appraisal re-certified or redone to the required
type. Beware: the appraisal belongs to the mortgage company regardless of who paid for it. Your old lender needs
to authorize the appraiser to release that appraisal to us, and there will be a fee from the appraiser to reissue
the appraisal.
Can I use mortgagefool.com
when I am buying a new home from a builder?
Absolutely! Builders usually like buyers to use the builder’s preferred lender and offer incentives for you
to do so, like the builder paying mortgage points or paying some of your closing costs. Unfortunately, sometimes
the builder’s preferred lender just doesn’t have competitive rates, points, and fees. We’ve had buyers add verbiage
to their purchase contract that states that if the builder’s preferred lender can’t meet or beat mortgagefool.com
interest rate, points, and fees, the incentives will still be given.
Since I’m near one of your offices, can I do the loan application in
person rather than on line?
The long answer: One of the key things that allow us to offer you such competitive rates is your completion
of the loan application on line. We’ve found that doing the application is most efficient for us and for you
when you’re able to complete it from your home where you have access to all of the information you need put
on the application. If you prefer the traditional approach with a face-to-face formal meeting with a loan officer,
we can refer you to a HomeFirst loan officer. Note: you will pay more!
The short answer: No.
You are more than welcome to come to an office to pick up or drop off papers.