What are the steps to make this site work for me?
This site is designed to be used in a variety of ways, but many people start with the mortgage calculator to help you determine how much your monthly payment would be. When you are ready, I will be happy to guide you through the process, as my loan consultations are free of charge with no obligations.
Who can answer questions not addressed here?
Call me or email me any time and I will be happy to address your concerns.
Why do I need a credit report?
Reviewing your credit report is the first step in the traditional mortgage process and allows both parties, the borrower and the lender, to determine what type of traditional loan you might qualify for.
Why should I consider a refinance?
People choose to refinance their homes for many reasons. If you are interested in lowering your interest rate, reducing your monthly mortgage payment, or cashing out on your home equity, refinancing might a good option for you.
What documents will I need to have ready?
In most cases, documents that verify employment, income and assets will be required. These can include:
- Social Security number
- Last 2 months of pay stubs
- Past 2 years of W-2 forms
- 2-3 months of bank statements
- 1-2 years of federal tax returns
- Any information regarding current debt (student loans, car loans, credit cards, etc.)
What is a loan origination fee?
An origination fee is charged by the lender and pays for the evaluation and processing of the loan. It is usually expressed as a percentage of the loan.
What is an FHA loan?
An FHA loan is a mortgage loan that is insured by the Federal Housing Administration (FHA). FHA loans are popular with first-time homebuyers because the requirements are less strict than conventional loans.
In what states are you licensed?
Open Mortgage is currently licensed in over 40 states. Visit our Licensing page for a complete list.
What is the difference between a Mortgage Broker and a Mortgage Banker?
Open Mortgage has been a Mortgage Banker for over 10 years. When you work with a Mortgage Banker, you interact with the same people from the same company throughout the entire process – from application to close – ensuring special attention to detail. A Mortgage Banker approved the loan and can generally offer lower rates/costs and a quicker process. A Mortgage Broker brings you to the lender who approves the loan.
What is the difference between interest rate and APR?
Your interest rate is the monthly cost you pay on the unpaid balance of your home loan. An Annual Percentage Rate (APR) includes both your interest rate and any additional cost or prepaid financial charges such as the origination fee, points, private mortgage insurance, underwriting and processing fees. (Actual fees may or may not include these charges). While your interest rate is the rate at which you will make your monthly mortgage payments, the APR is a universal measurement that can assist you in comparing the cost of mortgage loans offered by different Mortgage Bankers (Lenders).
How important is the Loan-To-Value (LTV) ratio in refinancing?
The loan-to-value ratio [LTV] shows how much equity you have in your home. Equity is the difference between how much your home is worth and how much you owe on it. For instance, if your home is worth $150,000 and you owe $100,000 on your mortgage, then you have $50,000 worth of equity in your home. To calculate your LTV, divide your current loan amount by your home’s value. In this example above, your LTV would be 67%. In the mortgage world, higher loan-to-value (or lower equity) means there is a greater risk the borrower may default on the loan. Therefore, in refinancing your home, LTV is important in determining qualification for home loans and rates. Generally speaking, the lower your LTV, the lower your rate.
Are the pre-qualification and pre-approval services free?
There is no charge for getting pre-qualified or pre-approved. You are not under any obligation to use our site to apply for a loan, even if you use the mortgage calculator.