Here are a few of the most frequently asked questions (FAQs) about the mortgage process.
The mortgage process can be complex depending on the type of loan you are applying for. Get answers to the most common FAQs about buying a home and getting a mortgage, refinancing and using the equity in your home. Over the years many of our customers have asked a lot of the same questions. We have put many of them here to save you time. Your question may appear here on our list. If you do not see an answer to your question(s) below, please contact Anchor Mortgage at 508-420-1222 or toll-free at 800 640 4333.
-
Q?
How do I know how much I can afford?
-
A.
Our complimentary mortgage calculator can help you with this question.
-
Q?
What is an FHA Loan?
-
A.
FHA loans are government-insured loans through the U.S. Department of Housing and Urban Development, also called HUD. FHA loans offer an excellent start to first-time home buyers, with options such as a low down payment or a low closing cost option.
Quick Facts:
- Low down payment is required
- Your own personal savings are not required to pay down payment or closing costs. Gift funds may be used instead
- You can buy an existing home, or build a new one
- Some geographic limitations apply
-
Q?
What is a VA Loan?
-
A.
The Veteran's Administration (VA) loan program is sponsored by the U.S. Government's Department of Veteran's Affairs. VA loans are available to credit-worthy individuals who are or were:
- an honorably discharged veteran
- an active duty service member
- an un-remarried surviving spouse of a military service member
- a Reservist, or
- a National Guardsperson
Quick Facts:
- 0% down payment required
- Gift funds may be used to pay for closing costs
- Maximum loan amount: $417,000 or the geographic VA maximum mortgage limit
-
Q?
Can I trust a mortgage broker to get the job done?
-
A.
You bet you can! Because they are normally compensated for their work only if and when the loan is closed, they will be there to make sure the transaction is completed as quickly and efficiently as possible.
Anchor Mortgage has assisted thousands of homeowners to obtain the financing they need to achieve their goals.
-
Q?
Isn’t a mortgage broker expensive?
-
A.
No, not necessarily. In fact, in this day and age, there are many reputable wholesale mortgage companies which originate their loan portfolios strictly through Mortgage Brokers. A Mortgage Broker is more likely to have the right program for you than any other type of lender because they work with many lenders. This makes the Mortgage Broker competitive with Mortgage Bankers and Savings institutions on any loan program available to the public. The Mortgage Broker deals with lenders who specialize in mortgages, therefore have a much more cost-effective price than banks who have to allocate costs of all departments.
-
Q?
What about creative financing?
-
A.
Mortgage Brokers are not tied to one source of funding. They have many lenders offering hundreds of programs. Since each lender establishes his own criteria for credit, property, and income, a professional Mortgage Broker can almost always match a borrower's need with a program to suit those needs.
Anchor Mortgage loan consultants can provide you with a no-cost debt consolidation analysis and will use their experience and expertise to guide you through the process and help you determine the best mortgage to fit your situation.
-
Q?
A mortgage for debt consolidation?
-
A.
Depending on your individual situation, it may make sense to consolidate other debts into your mortgage. Because of changes in tax laws, the interest on most consumer loans such as credit cards and car loans are no longer tax deductible. However, the interest on your mortgage is generally tax deductible and those rates are usually significantly lower than consumer loans. Debt consolidation can also lower your monthly cash outlay.
-
Q?
When should I refinance?
-
A.
The theory that it is only cost-effective to refinance when interest rates drop two points lower than your current mortgage rate is not necessarily true. The best time to refinance is any time mortgage rates drop below your current rate. Even a slight drop in rates can mean significant savings to you by either lowering your monthly payment or by allowing you the opportunity to keep the same monthly payment but reduce the length of your mortgage.
Anchor Mortgage loan consultants are fully qualified to help you find the right mortgage or help you determine if it is to your advantage to refinance. They can then offer you mortgage programs from many different lending institutions to match your individual situation.
-
Q?
What mortgage is best for me?
-
A.
There are many mortgage options that could significantly lower your mortgage costs by either reducing your monthly payment or by decreasing the length of your mortgage. These factors are equally important whether it's a new loan or a refinance.
The type of mortgage best suited to your individual situation depends primarily on the amount you can afford monthly. However, the right mortgage also depends on how long you expect to own the property, and your projected income growth.
-
Q?
Why do rates change?
-
A.
The ten-year treasury index, monthly unemployment reports, the Consumer Price Index and the Producer Price Index - known as economic indicators - are four elements that give the market the most direction with respect to mortgage rates. The direction of those inflation indicators cause the market to respond with changes in interest rates on a daily basis.
Anchor Mortgage is constantly monitoring these rates and the pulse of the market to help its customers choose the right time to lock-in the best interest rates. Our loan consultants are fully qualified to find a mortgage that can even fit challenging scenarios. And, our low rate mortgages are available free of costly points.
-
Q?
Where does mortgage money come from?
-
A.
Fannie Mae and Freddie Mac are the two agencies that provide lenders with the majority of mortgage money. They have strict financial guidelines for borrowers to meet, but also provide the best rates available to those who qualify. Portfolio loans are also available for alternative guidelines.
Anchor Mortgage is constantly updating our lender base with the most innovative programs available. We have direct on-line automated underwriting with both Fannie Mae and Freddie Mac.
-
Q?
What is a mortgage broker?
-
A.
Today's Mortgage Brokers are professional mortgage consultants who are licensed to arrange loans. They negotiate, place, assist in placement, find or offer to assist in placement and find mortgage loans on residential properties for you the borrower. Anchor Mortgage is licensed by the Commissioner of Banks of the Commonwealth of Massachusetts and the nationwide mortgage licensing system (NMLS).
Your local bank offers several programs for mortgage lending. A mortgage company represents many different lenders and, therefore, offers you hundreds of lending programs. The mortgage company evaluates your situation, then offers you the options that best meet your needs. Mortgage companies offer you greater flexibility, more access to your Mortgage Advisor, and can save you money by shopping your mortgage to several institutions.
Anchor Mortgage Advisors specialize in individual attention to the specific borrower and have years of experience in the local marketplace.