FAQ

FAQ2022-09-07T14:32:32+00:00

WELCOME TO PRMI FAQ

Here Are The Most Frequently Asked Questions.

Check out our FAQ’s to get answers to the questions we get asked most about PRMI services, Loan types, how we work with financial services professionals, realtors, and more.

What is included in my monthly payment?2022-04-18T19:24:55+00:00

In most cases your monthly payment will include loan principal and interest. If your loan has private mortgage insurance, it will also be included.

When is my due date?2022-04-18T19:24:36+00:00

Your mortgage payment due date is listed on your monthly billing statement or coupon. A late charge is assessed if the payment has not been received and processed by the date noted. It is very important that you establish and maintain good credit by making sure your payment reaches us by the due date each month. Late payments can affect your credit record.

What is DTI?2022-04-18T19:24:16+00:00

DTI stands for debt-to-income ratio. It is the percentage of your gross monthly income that goes toward monthly debt payments and obligations. It factors in things like rent or mortgage payments, auto loans, credit card payments and alimony/child support payments. A smaller debt-to-income ratio improves your chances of qualifying with an advantageous rate.

Can I get a loan if my credit isn’t great?2022-04-18T19:23:53+00:00

Very likely. Qualification depends on a number of factors, but we offer loans with lenient credit requirements. For example, you may be able to qualify for an FHA loan with a credit score as low as 500.

Can I buy a home without a large down payment?2022-04-18T19:23:44+00:00

Yes. We offer a wide selection of loan products, including options with low down payments and no down payment.*

*Closing costs and fees may still apply.

How do I start the application process for a mortgage?2022-04-18T19:22:33+00:00

The application process can be initiated by clicking on any of the apply now buttons on this site.

What will my rate be?2022-07-27T19:47:03+00:00

Rates are based on a variety of factors such as the loan purpose, your credit history and ability to repay, the value of the collateral and the loan amount.

What is the difference between pre-approved and pre-qualified?2022-04-18T19:21:32+00:00

Prequalification means a lender has given you an estimate of how much you may qualify to borrow. Pre-approval is more official and means the lender has collected more info and sent it through underwriting.

Can I lock my interest rate when purchasing a home?2022-04-18T19:21:04+00:00

Absolutely. We provide a variety of options to lock in your interest rate. Locking your rate means that the lender is agreeing to provide you with your mortgage at that particular rate, and that it won’t go up (or down) between the time you lock it and the time that you close on your home. If your mortgage is fixed-rate, your interest rate will remain the same throughout the life of the loan. Mortgage interest rates fluctuate constantly, and you don’t want to start shopping for a house operating under a certain interest rate assumption, only to be unpleasantly surprised that interest rates have risen during your house hunt.

What is APR?2022-04-18T19:20:46+00:00

APR is short for Annual Percentage Rate. APR represents the cost of a loan over a year. It includes the interest rate as well as other costs and fees that come with your loan.

What’s the difference between an adjustable-rate mortgage (ARM) and a fixed-rate mortgage?2022-04-18T19:20:21+00:00

An adjustable-rate mortgage comes with an interest rate that can change throughout the loan term. If you choose a fixed-rate mortgage, the interest remains the same throughout the entire duration of the loan.

What are popular loan options?2022-04-18T19:19:49+00:00

We offer hundreds of loan programs so we can meet the unique needs of each customer. Common options include:

  • Conventional loans
  • FHA loans
  • VA loans
  • USDA loans
  • Jumbo loans
  • Renovation loans
What is PMI?2022-04-18T19:17:15+00:00

PMI stands for private mortgage insurance. Mortgage insurance protects your lender’s investment if you default on your loan. It is normally required if your down payment is less than 20%.

What are the closing costs?2022-04-18T19:16:42+00:00

Closing costs will vary depending on your situation, but they often include origination fees, appraisal fees, title insurance fees and more. You will receive an estimate of closing costs in advance so you know what to expect.

What is an FHA mortgage?2022-04-18T19:16:29+00:00

FHA loans are government-insured loans through the U.S. Department of Housing and Urban Development, also called HUD. FHA loans offer an excellent start to first-time home buyers, with options such as a low down payment or a low closing cost option.

What Is Refinancing?2022-07-27T19:46:38+00:00

Refinancing your mortgage is essentially replacing your current mortgage loan with a new one. In many cases, refinancing can help you reduce your monthly payment, get a more favorable interest rate, consolidate debt or get cash for home projects.

Why Consider Refinancing?
There are many different reasons to refinance your mortgage, and they’ll vary for each person. Common reasons include:

  • Interest rates have dropped and you may be able to reduce the amount you pay in interest over time
  • You’ve improved your credit and may qualify for more favorable terms
  • You’d like to reduce your monthly mortgage payment
  • You’d like to eliminate your monthly private mortgage insurance payments
  • You need cash for projects, home improvements, travel or other goals
  • You’d like to consolidate debt or pay down high-interest debt
  • You’d like to switch to a shorter loan term (for example, from 30 years to 15)
  • You’d like to switch from an adjustable-rate loan to a fixed-rate loan

What Will Refinancing Cost?
Like a purchase loan, a refinance requires closing costs, but these costs vary depending on your situation. In many cases, paying to refinance means you’ll spend less on your mortgage in the long run. Your Loan Officer can help you determine a break-even point so you can find out how long you’d need to plan on staying in your home for refinancing to be financially advantageous.

How Much Equity Do You Need?
If you’d like to eliminate your private mortgage insurance payments, you’ll need at least 20% equity in your home before refinancing your loan. However, you can often refinance even if you have less equity built up. Your Loan Officer can help determine whether you have enough equity to refinance.

How Does The Process Work?
Because refinancing is replacing your old mortgage with a new one, the process isn’t that different from the process you went through when buying your home.
You’ll apply for a loan, provide documentation to your lender, get your home appraised to determine its value, go through the underwriting process and close on your loan.

As always, your PRMI- Wooster Loan Officer will happily walk you through the process so you know what to expect.

*When it comes to refinancing your home loan, you can generally reduce your monthly payment amount. However, your total finance charges may be greater over the life of your loan. Your PRMI loan professional will provide you with a comprehensive refinance comparison analysis to determine your total life loan savings.

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