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Frequently Asked Questions

Have questions about Home Loans? You’re in the right place.

What's APR?

An annual percentage rate or APR is the amount of interest on your total mortgage loan amount that you’ll pay annually (averaged over the full term ofthe loan). Like an interest rate, the APR is expressed as a percentage. Unlike an interest rate, however, it includes other charges or fees such asmortgage insurance, most closing costs, discount points and loan origination fees.

What happens with my existing escrow account and how is my new escrow account funded?

All monies in your existing escrow account with your current mortgage lender will be refunded to you within 30 days of settlement on this refinance. Upon funding this new refinance, monies will be collected to fund your new escrow account, the amounts collected will be determined based on when next property tax payment and property insurance premium are due.

Where do closing costs and fees come from?

Closing costs and fees come from a myriad of transactions that occur during the mortgage process. They include origination fees, required validationfees, title insurance and settlement charges, and recording and government fees. Typically, closing costs and fees calculate out to be around 2% - 5%percent of your total home cost, so plan accordingly.

What is the difference between Prepaids and the Escrow account?

Based on the timing of the settlement on this refinance, payments may be due for property taxes and property insurance within the period between the settlement date and the first mortgage payment due date on this new mortgage. These payments are collected as "Prepaids" at the time of settlement on this refinance to ensure timely payment. Monies collected to fund your new escrow account are to make all future property tax and property insurance payments.

Do I need to make payments on my existing mortgage?

Yes! Until the funding of your refinancing is done, you still are required to make your mortgage payments.