Mortgage Lender



Question: Why would I need a mortgage?
Answer: When buying a home a buyer can either pay cash for the home or secure a loan against the property.  That loan is referred to as a mortgage or a home loan.  A homeowner can also obtain a mortgage when refinancing.

Question: What is a Refinance and how do I know if I need one?
Answer: A refinance is a new mortgage that pays off any existing mortgage on the home you own.  A refinance is a good idea if you can lower your current interest rate or payment, want to change the loan period on your existing mortgage or if you wish to obtain cash out of your equity.

Question: What is a Home Equity Line of Credit?
Answer: A Home Equity Line of Credit, or HELOC, is a loan secured on your home, generally a second, that gives the homeowner access to an open line of credit where only the outstanding balance accrues interest.  HELOCs allow a borrower access to this money on an “as needed” basis.



Question: Is Residential First Mortgage a broker or a direct lender?
Answer: Residential First Mortgage is both a Broker and a Direct Lender.  This allows us the flexibility to provide you with a customized solution to your mortgage needs.




Question: What is a fixed rate Mortgage?
Answer: A fixed rate mortgage is a home loan with an interest rate that is determined at the closing of your home loan, is reported on your Note and is unchanging throughout the term of your mortgage.




Question: What is an Adjustable Rate Mortgage?
Answer: An Adjustable Rate Mortgage, or ARM, contains an interest rate that is subject to movement periodically due to the fluctuations in market interest rates which in turn creates a change in your monthly payment.




Question: What is an interest only mortgage?
Answer: These are loans that require the borrower to pay only interest on the principal balance in monthly installments for a fixed period.  By paying only the interest, the loan balance does not decrease.




Question: What is a fully amortized mortgage?
Answer: A fully amortized loan refers to loans that are paid in installments comprised of both principal and interest and is paid off (or amortized) over a fixed period of time.



Question: How do I know if I have enough equity for a new mortgage?
Answer: Loans are calculated on a loan-to-value (LTV) ratio.  This means the amount of your loan is divided by the fair market value of your home or on a purchase, the sales price of your home, whichever is less.  The maximum LTV is determined by your lender and the parameters in which they are willing to lend.



Question: What are loan fees?
Answer: Depending on the interest rate selected, loan fees can range from “0” to a percentage of the loan amount.  If you select a higher interest rate, you can get the lender to pay them for you.  If you select a lower rate, you will need to pay them.  This will include all loan fees, such as an appraisal, credit report, notary, recording, processing, underwriting, docs, escrow and title fee, etc.  They are all costs of getting a loan that can be blended into your rate, financed or paid by you in cash.