A Mortgage (also called a home loan) is a legal contract made between a lender and a borrower that uses property as collateral to secure the loan. The lender can take possession of the property if the borrower fails to pay the prearranged home loan payments.
What is a mortgage refinance?
What is a home loan?
Home loan: see definition for mortgage
What is a home equity loan?
A
What is a home equity line of credit or HELOC?
Home equity lines of credit or HELOCs give homeowners access to an open line of credit, where only the outstanding balance accrues interest. HELOCs provide flexibility by allowing borrowers access to money on an as needed basis.
What is a second mortgage?
A second mortgage is a type of mortgage refinancing that allows you to acquire a second loan on your home in addition to your first home loan.
What is a reverse mortgage?
Reverse mortgages are loans that allow homeowners to transfer some of their home equity into cash. In contrast to traditional home loan mortgages, reverse mortgages do not require borrowers to repay their home loan until the homeowner no longer lives primarily at that residence, although he or she stills owns the residence.
What is a mortgage lender?
A mortgage lender is a financial institution that provides prospective homeowners with the funds over a long-term period to pay off their home loan mortgage. Borrowers are required to pay monthly installments to their lender which includes principle, interest, and additional lender fees. Examples, mortgage bankers and mortgage brokers.
What is the difference between a mortgage broker and a mortgage banker?
A mortgage broker is the middleman who helps match borrowers with lenders based on corresponding needs and standards. Mortgage brokers arrange more the 80% of all transactions between borrowers and lenders, yet mortgage bankers actually finance and distribute the largest portion of home loans compared to all other lenders.
What is a mortgage principle?
The mortgage principle is the amount of loan money that a homeowner borrows excluding the interest.
What does APR mean?
Annual Percentage Rate ( APR ) is the percentage used to figure out the total cost of your cash advance loan by taking into account all fees charged by your lender in addition to your loan principle and interest.
What does the word “naviscreen” mean?
Naviscreening is the concept of directly connecting (mortgage) buyers with regionally specific, prescreened, and competent lenders through the simple completion of a universal and secure form.
What is a fixed rate mortgage?
A fixed rate mortgage is a home loan with steady interest rates and monthly payments that do not change throughout the life of the loan.
What is the adjustable rate mortgage?
What is an interest-only mortgage?
What is an amortized mortgage?
Amortized Mortgages refers to loans that are paid in installments comprised of both principle and interest, and which is paid off (or amortized) over a fixed period of time.
How do you calculate LTV or loan-to-value ratio?
The loan-to-value (LTV) ratio of your home is calculated by dividing the fair market value of your home by the amount of your home loan.
What are lender fees?
These fees usually range anywhere from 2 to 5 percent and may include, but are not limited to, things such as appraisal costs, document preparation, and application costs.
What is the Truth in Lending Act?
The Truth in Lending Act is a federal law that was enacted as part of the Consumer Protection Act. This law requires lenders to reveal all information to the borrower and detail all costs associated with the transaction.
MOST COMMONLY ASKED QUESTIONS BY COMMERCIAL LOAN SEEKERS
What is the interest rate?
The interest rate is determined primarily by the
property type and your credit score.
One-For-The-Money will need information from you to determine your rate. But as a business owner, you know that cash-flow is what counts and your monthly payment should be affordable. We will tell you what your monthly payments will be.
How long will it take to
close my loan?
Your loan could close within 45 days – sometimes
sooner. The reason why commercial loans take longer
than most residential loans is that commercial
properties are more unique and require a much more
labor intensive appraisal process, which can take up
to 3 weeks. If you have a specific deadline such as
an expiring sales contract, be sure to inform us as
soon as possible so that we can get your loan closed
in time.
Are there any fees?
The appraisal fee, environmental due diligence and
nominal closing costs are some of the fees
associated with One-For-The-Money loans.
Depending on the deal, there may be some additional
charges. We will be able to provide you with
additional details on all of the fees prior to
moving forward.
Can you finance
environmentally sensitive property types such as
auto repair shops and dry cleaners?
If you have an environmentally sensitive property,
you may be aware that most lenders require a Phase 1
or Phase 2 environmental report, which can cost
thousands. Our programs are able to handle these
types of properties with more relaxed environmental
guidelines that cost much less than the traditional
alternative.
Is there a penalty for
paying off my loan early?
These loans are structured to be held for the long
term. As a result, there is a penalty for paying off
the loan early (within the first five years for most
programs). Keep in mind that this is a business
loan. And as long as you plan on being in business
for at least five years after closing your loan, the
penalty won't be an issue.
Do you offer commercial loans
in my state?
Yes. We
lend in all states excluding Hawaii and Alaska.
Can I qualify for a
loan even if I don't live in the state where the
subject property
is located?
Yes.
Unlike most traditional lenders, our lenders will
provide funding for a property that is located in a
state other than where the borrower resides.
Do you lend to
self-employed borrowers?
Yes,
our network of lenders offers loans to self-employed
individuals. We have a full documentation program
for borrowers who are willing and able to document
income.
How long must I own
a property before I can apply for a refinance with
cash-out?
We do not
have a strict seasoning requirement and are willing
to work with you to find a solution that suits your
needs.
Why is it valuable to apply
for a higher loan-to-value (LTV) amount?
Applying
for a loan with a higher LTV amount allows you to
better leverage your money. The return on equity you
receive from your investment will be higher when you
put less money down. Less money out-of-pocket means
more cash on hand to invest in your business.
Will you accept an existing
appraisal?
Possibly. If the appraisal was completed within the
last six months, we encourage you to send it in for
review. We try to keep borrower costs to a minimum
and will typically accept a current appraisal of
good quality.
Who is responsible
for organizing the closing?
We
handle all the details for your closing. If there is
a title company you prefer to work with, we can
schedule your closing with them; however, we do
prefer to use title companies with which we
currently have working relationships.
Who orders the title
policy?
We
order the title because it enables us to manage the
deal and keep the process moving. We have
relationships with title companies who understand
the endorsements we require and are responsive to
our needs.
What if the title is
already in process?
We
will work with you to help ensure there are no
problems.
How does the appraisal
process work?
After
we receive a signed conditional pre-approval letter
from the borrower and the estimated appraisal fee,
we shop the appraisal with our network of appraisers
throughout the country.
Because of
the volume of appraisal assignments ordered by us
and our affiliates, we are able to command favorable
pricing and turnaround times.
Once we receive the estimated appraisal and processing fees, we will engage the appraiser. The appraisal generally takes 2 to 4 weeks to complete.
The loan should close within a week thereafter.
