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 MORTGAGE Q & A WITH OUR MORTGAGE OFFICERS

Article: Mortgage Q & A with our Mortgage Officers

Mortgage Q&A with our Mortgage Officers

We asked our Facebook fans for their mortgage-related questions for our experienced local mortgage loan officers.

Are mortgage interest rates negotiable?
Yes,and no. Interest rates are based on several factors including credit score, loan-to value, purpose of loan, etc. But, based on your unique scenario, you can potentially "buy down" your interest rate by paying points in the form of additional closing costs. I'd be happy to speak with you about your potential mortgage.

Ruby ManihaniAdvantis Mortgage Loan Officer, Hillsboro Branch Visit Ruby's Website

How do I lock in a good rate?
Your Mortgage Loan Officer will advocate for you by making sure you are getting the best possible rates and terms available to you.

Laura KemnitzAdvantis Mortgage Loan Officer, Woodstock Branch Visit Laura's Website

What is the difference between a fixed-rate and an adjustable-rate mortgage?
A fixed rate will never change throughout the life of the loan. An adjustable rate mortgage (ARM) will change after the fixed period ends.

Jeri Maher, Advantis Mortgage Loan Officer, Belmont Branch
Visit Jeri's Website

When should you refinance to a lower rate? If we save just 1\2 percent is it worth it? 
This really depends on how long you expect to stay in your home.  It might not make sense if you only plan to be in your home a few more years.  But, if you plan to be in your home for the long term, even a half percent savings could make sense. 

Let’s assume you are paying 4.625% right now on a 30-year loan with a balance of $200K.  If you refinance at 4.125%, your payment would go down by about $59.00 per month, and you would save about $21K in interest over the life of the loan. 

Even considering the estimated $2,500 you would pay in closing costs for the refinance, you are still over $18K ahead in interest savings! 

Please let me know if I can help you or anyone you know with a home loan, I would be happy to do so!
 

Jason Colarchik, Advantis Mortgage Loan Officer, West Linn Branch, Visit Jason’s website


What are the benefits of a shorter term loan (15- or 20- year) compared to a 30-year term?
Typically, shorter loan terms have lower interest rates, but they also have higher payments. Going with a 15-year term versus a 30-year term will save you A LOT of interest over the life of the loan. Your Loan Officer can help you understand the different scenarios for your unique situation.

Jason Colarchik, Advantis Mortgage Loan Officer, West Linn Branch, Visit Jason’s website

What is private mortgage insurance, and do I need it?
Mortgage insurance is required if you do not have 20% down; if you are able to come up with that for your down payment, you will not be required to pay MI. Advantis does offer some portfolio in-house loan products that do not require MI.

Verenice Leon, Advantis Mortgage Loan Officer, Downtown Branch Visit Verenice's Website

What are mortgage points?
Points are additional dollars you can pay as part of your total closing costs. Paying these points help you secure a lower interest rate and reduce the overall costs of home ownership.

Ruby ManihaniAdvantis Mortgage Loan Officer, Hillsboro Branch Visit Ruby's Website

What are closing costs, and how do I know how much they'll be?
Once we understand your unique scenario, your Advantis Mortgage Loan Officer will be able to provide an "Itemized Fee Worksheet" that will include estimated costs, such as purchase price, loan amount, points, etc.

Laura KemnitzAdvantis Mortgage Loan Officer, Woodstock Branch Visit Laura's Website

How much will my credit score affect my interest rate?
It will depend on your actual credit score. Once we have your application, which will include your credit score, we can communicate the details about the interest rate we can offer you.

Jeri Maher, Advantis Mortgage Loan Officer, Belmont Branch
Visit Jeri's Website

What do you suggest for a person to do once their house is paid off? How do you get a tax break?
This is a great question. You should consult your tax advisor to find out the best strategy for you, because it will depend on your specific situation.

Meanwhile, you can turn to our Advantis Wealth Management (available through CUSO Financial Services, LP) for investment and retirement planning services. And I’m here for any of your mortgage needs, should you look at purchasing another property.


Jason Colarchik, Advantis Mortgage Loan Officer, West Linn Branch, Visit Jason’s website


What is the difference between being "preapproved" and "prequalified"?
Prequalified means you have applied for a loan and your credit score has been reviewed. Preapproved means you have applied for a loan, your credit score has been reviewed, and an underwriter has reviewed your big financial picture (including information about other debts, savings, investments, and your income).

Jason Colarchik, Advantis Mortgage Loan Officer, West Linn Branch, Visit Jason’s website

How much of a down payment do I need?
Depending on your unique scenario, Advantis can offer as much as 100% financing. 

Verenice Leon, Advantis Mortgage Loan Officer, Downtown Branch Visit Verenice's Website

What documents will I need to get approved for a mortgage?
Once we receive your application, we will contact you with next steps, including a list of information or documentation specific to your unique situation. Typically, we will ask for documents such as pay stubs, W2s, and your tax return(s).

Ruby ManihaniAdvantis Mortgage Loan Officer, Hillsboro Branch Visit Ruby's Website

What is an escrow account?
Escrow is an account set up to pay your future property taxes and homeowner's insurance. As a homeowner, you will make both an initial deposit to the escrow account and as monthly deposits from your total house payment. Escrow holds these deposits, so there is enough cash in the account to pay for these larger homeownership expenses as they come due. Escrow is designed to make it easy for you to pay for these annual, ongoing homeownership expenses without worry or hardship.

Laura KemnitzAdvantis Mortgage Loan Officer, Woodstock Branch Visit Laura's Website

Can I get a mortgage loan with bad credit?
'"Bad" credit is a subjective term, and it's always in your best interest to apply for a loan even if you wonder or worry about your credit score. Your Advantis Mortgage Loan Officer can talk through your credit history with you, offering insights and suggestions for how to improve your credit. It's important to us to help you find your way to an approval and the best interest rates available to you. We want to help you to live your best financial life.

Jeri Maher, Advantis Mortgage Loan Officer, Belmont Branch
Visit Jeri's Website

What type of mortgage loan is best?
Every scenario varies and is based on your individual needs. Most homeowners prefer the safety of a long-term fixed mortgage rate. But, for others who have a different "exit strategy" and may plan to sell the property in 10 years, a lower rate ARM (adjustable rate mortgage) might be a better option. The best loan for you is just that, the best loan for YOU. We can help you understand your options, so you can make the decision that serves your goals and best interests.

Jason Colarchik, Advantis Mortgage Loan Officer, West Linn Branch, Visit Jason’s website

What are the mortgage options for first time home buyers?
We have fixed-rate loan options, with as little as 3.00% down. Advantis also offers 100% financing with adjustable-rate mortgage (ARM) loan options, depending on your scenario. Which loan and down payment option is right for you? Let's find out!

Verenice Leon, Advantis Mortgage Loan Officer, Downtown Branch Visit Verenice's Website

How long does someone have to wait to purchase a home after a short sale? 
Typically, a short sale weights lighter on your credit score then a full foreclosures. Still, it depends on if the short sale was an isolated incident or part of an overall pattern. After two years pass, we are able to give lending you money for another mortgage a shot. In most cases, you will need to come in to the transaction with a 20% down payment.

Jason Colarchik, Advantis Mortgage Loan Officer, West Linn Branch, Visit Jason’s website
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