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.
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?moduet2022-04-18T19:23:53+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?moduet2022-04-18T19:23:44+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?moduet2022-04-18T19:21:04+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.
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?moduet2022-04-18T19:19:49+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?moduet2022-04-18T19:16:29+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?moduet2022-07-27T19:46:38+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.
PRMI NMLS 3094. PRMI is an Equal Housing Lender. Some products and services may not be available in all states. Credit and collateral are subject to approval. Terms and conditions apply. Programs, rates, terms and conditions are subject to change and are subject to borrower(s) qualification. This is not a commitment to lend. The content in this website has not been approved, reviewed, sponsored or endorsed by any department or government agency.