Please take a moment to further educate your self about
Green Valley Mortgage and Long Island, New York mortgages
and refinancing in general by
reading the list of frequently asked questions below.
|
| What are
closing costs? |
Closing
costs are generally costs associated with appraisal,
title examination, title insurance,
credit report, tax
service, document preparation, underwriting, processing,
recording your mortgage, and any origination fees or
points. Some of these fees are paid to third parties and
some are paid to the lender.
|
| |
| What is a
buy down? |
| It is where
you buy the interest rate down by paying extra points.
You get a lower interest rate (or note rate) and a lower
monthly payment by paying extra points at the time of
the loan closing. |
| |
| How fast can
I get my money? |
| We can have
your money to you as quickly as 14 business days. It
depends on how fast you can get us the requested
documents, how fast the appraisal can be done and if
there are any issues with the title on your home. |
| |
| How can I
know what my home is worth? |
| You can
contact a local realtor and ask them for a free market
analysis on your home. The realtor can show you recent
sales of homes like yours that have sold within the last
six months. This will give you a good indication of what
homes like yours are selling for in your neighborhood.
However, PCFS Mortgage Resources will require an
appraisal be performed by a licensed real estate
appraiser. |
| |
| What is LTV? |
| It stands
for Loan-To-Value. This is how much of the value of your
home, a lender will loan you. For example, your home is
worth $100,000 and the the lender will lend up to 80% of
that value or $80,000. Your LTV would be 80%. |
| |
| What is the
difference between a Debt Consolidation loan and a
Refinance? |
| Refinancing
is anytime you rewrite the loan on your home, whether it
is with the same lender as before or a new lender. A
Debt Consolidation Loan is when you take money to pay
off other bills. You can use the equity in your home, by
refinancing it and use the money to consolidate your
bills. |
| |
| What is streamline refinancing? |
| This is
where you refinance your mortgage loan, with your
current mortgage lender to lower your interest rate or
shorten the term on your current mortgage and because
you did this with your current mortgage lender, there
are typically few closing costs. Most lenders will not
allow any cash out on a streamline refinance. |
| |
| What is the
difference between a Home Equity Loan and a Line of
Credit? |
| They can be
the same thing. A Home Equity Loan is when you get a
second loan on your home, called an equity loan. You are
not refinancing your first mortgage. These loans are
usually for 20 years or less. There are two types of
Equity Loans, a fixed rate closed end loan and a
variable rate line of credit. The fixed rate home equity
loan is for a specific term, i.e., 5, 10, 15, or 20
years. If you want to borrow again, you have to go
through the loan process again. A
Home Equity Line of
Credit is usually a variable rate loan that has a credit
line, like a charge card, and you can keep borrowing up
to the amount of that credit limit, for a specified
period of time, i.e the first 5 or 10 years of the loan,
without going through the loan process again. |
| |
| Do I have to
pay closing costs? |
| Most
mortgage loans have closing costs. However on refinancing
or equity loans, the closing costs are rolled into the
loan amount. This means that while you are being charged
these costs, you do not pay them out of pocket, like you
did when your originally purchased your home. |
| |
| What is PMI? |
| PMI stands
for Private Mortgage Insurance. This is usually charged
to the borrower on loans where the loan amount exceeds
80% of the appraised value of the home. Most lenders
want insurance on loan amounts greater than 80% of the
homes value due to the risk associated with these loans.
The lender has less risk on a loan amount at 80% of the
homes value, than at 85, 90, or 95% of the homes value. |
| |
| What is a
Good Faith Estimate? |
| It is an
estimate of all the costs associated with obtaining a
mortgage loan. |
| |
| Will my loan
be sold and how does that affect me? |
| Most
mortgage lenders sell their loans. This does not affect
your loan in any way. If the servicing of your loan is
sold it means that you will send your payments to a new
company and they will handle all billing, escrows, and
any questions on your account. Your loan terms, rate and
payment will not change. |
| |
| Is there an
advantage to refinancing my first mortgage instead of
adding a second mortgage? |
| There can
be. In most instances, the rate on a first mortgage is
lower than a second mortgage. The term of the loan is
usually longer on a first mortgage than a second
mortgage. This will usually give you a lower monthly
payment on the first mortgage because the loan is spread
out over a longer period of time than if you had two
payments, one for the first mortgage and one for the
second mortgage. |
