FAQ

As you can imagine, homeowners have many mortgage questions. These are very brief answers to a few of the most common. Want to know more? Call, click, or Apply now!

What is a no-cost loan?
On no-closing-cost loans, the lender pays your closing costs, and offsets them with a slightly higher rate. And they’re becoming increasingly popular. Why? Click for video

What is PMI?
Private Mortgage Insurance is simply an insurance policy. It’s taken out by the lender to protect itself in case you default. You pay the monthly premium with your monthly mortgage payment. In some cases, new regulations have eased PMI requirements. Talk to a PrivatePlus advisor for all the details.

What is escrow?
It’s part of your monthly payment. It’s an amount of money the lender calculates and sets aside to pay for property tax, homeowners insurance, and private mortgage insurance when required. Most homeowners prefer it because it’s a few extra bills they don’t have to worry about each month. It may be possible to waive escrow. Your PrivatePlus advisor will fill you in.

When do we close?
Let’s put it this way, the faster you can submit paperwork, forms, W-2’s, tax returns, etc. the quicker things move. Because PrivatePlus is the lender, we use our money, our underwriters, and we make the approval decisions. That means we can streamline the process. And because our advisors have done thousands upon thousands of loans, we’re adept at predicting an accurate closing date.

What is HARP?
It stands for Home Affordable Refinance Program. HARP 2 is the latest version. Because of the mortgage meltdown that started in 2007, the U.S. government reacted with a program to help homeowners refinance at today’s low rates if they’re underwater (current home value is less than what they paid for it). In many cases, they can refi in spite of their equity position.

Of course, there are requirements: (a) You’ve kept up with your payments and don’t have any 30-day late payments within the last year. (b) You closed on your current mortgage before May 31, 2009. (c) That same mortgage is held by Fannie Mae or Freddie Mac. Make note. Even though you make your monthly payments to a bank, Fannie Mae or Freddie Mac may still hold the loan. It’s easy to find out. Just click here. There may be some additional underwriting guidelines. Regardless, HARP 2 has already helped millions of Americans. It may help you. Again, we’ll gladly answer any questions.


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