Quick Mortgage Definitions / Terms / Facts
Is my personal information safe?
Absolutely. Your privacy and security is of the utmost importance to us. After logging into this system, your information
is encrypted so your personal information cannot be accessed or viewed by anyone without the proper privileges. We
maintain the highest level of security and data encryption available throughout your loan process.
How are rates determined?
Rates are determined by the bond market and other financial indicators. These rates can change daily or more
frequently. The changes are based on many different economic indicators in the financial markets. To obtain
current interest rates, view "Today’s Rate" on the front page or enter your desired
loan amount into "Custom Rate Search" on the left hand column of the front page.
What is an assumption?
An assumption is the process of a borrower transferring their property ownership to someone else. There are two different
types of assumptions, simple and qualifying. The transaction you are trying to accomplish determines which type of
assumption is applicable to your loan. Also, your Deed of Trust may prohibit a qualifying assumption.
A simple assumption is a transfer of mortgaged property from one or more persons to another. It is called "simple"
because this type of an assumption requires the signing of only a few documents to transfer "ownership" of the property
to someone else. An example of a simple assumption is the death or divorce of a co-borrower where the borrower wants
the co-borrowers name removed from the loan. In the case of a simple assumption, the "liability" of the mortgage
debt is not transferred. The remaining borrower is still responsible for repaying the balance of the loan.
A qualifying assumption involves the sale of the property and requires the buyer to qualify for the mortgage, just like
if they were applying for a new loan. A qualifying assumption transfers ownership and the "liability" for the repayment
of the loan to the buyer of the property. Most loans today, if assumable, are qualifying assumptions.
What is the difference between the Annual Percentage Rate APR and the interest rate?
The rate reflected on the APR shows the cost of the credit as a yearly rate. This rate is generally higher than the
rate stated on your mortgage note because, in addition to the interest rate, APR includes other costs such as
origination fee, loan discount points, pre-paid interest, and mortgage insurance. The APR allows you to compare, in
addition to the interest rate, the total cost of financing your loan, between various lenders.
Steps to Getting a Mortgage?
Get a Free Credit Report!
The first step to getting a mortgage is to know your credit score.
Understanding your credit report is a critical part to getting your mortgage.
Raise your score while you shop for your home to get the lowest rate at closing, with a few easy steps you can easily raise your score in within a few months.
Get your Credit Score
Build Your CreditPrequalify today for a new MasterCard that matches your credit profile. Risk Free. Start Now.
Increase Your Credit Score
Increase Your Credit Score – When you make your payments regularly, you improve your credit rating. Once your pre-payment penalty period is over, you should be able to refinance your mortgage loan for a much lower interest rate. After your bankruptcy has been discharged for over 2-3 years, you should have a much easier time qualifying for a lower interest rate mortgage loan.
Lending Tree Mortgage Calculator
Compare local and national bank lenders.
Mortgage Lenders are among some of the most stable and succesful in the country. Now is the time to get a new or refinanced mortgage while CANADA interest rates are low!
Fix Your Credit before Applying
Although it is very possible to get approved for a first time home loan with poor credit, a good credit rating will open the doors for low rates and better financing options. Improving your credit is a slow process. To begin, strive to pay all creditors on time and avoid skipping payments. A key to increasing credit scores is maintaining a good credit standing. Secondly, reduce your debts. Maintain credit cards at half the maximum limit. If possible, payoff balances monthly.
