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Fequently Asked QuestionsWhat is the process in obtaining a mortgage?Which loan program is right for me? What is the difference in a lender and a mortgage broker? Why use a mortgage company instead of a bank? What does it mean when you lock in a rate or float a rate? How long will it take to close my loan? What is a loan processor? What does the numbers such as 3/1 in Adjustable Rate Mortgages mean? What is a second Mortgage What is an equity line of credit? What is a fixed rate Second Mortgage? How can I look up a mortgage term? |
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Which loan program is right for me?Canton Street Mortgage provides many types of loan programs to ensure
that every client finds a loan that best fits his/her needs. Canton Street
Mortgage is pleased to service all mortgage needs including purchases,
refinances, fixed rate second mortgages, home equity lines of credit,
commercial loans, out-of-state loans, lot/land loans, and construction
to permanent financing loans. Loan programs vary allowing clients to
have
an adjustable
rate
mortgage, a balloon, or a fixed rate. In addition, many of these programs
have an interest only option. What is the difference in a lender and a mortgage broker?A lender funds your loan, while a mortgage broker is the middleman who
places you with the lender. By using a broker you have access to
many lenders, which can mean lower interest rates and closing costs
for you. Why use a mortgage company instead of a bank?A bank is basically a lender. Therefore,
like in the question above, a mortgage company or a broker has a wider
portfolio of loan programs than a bank. What does it mean when you lock in a rate or float a rate?At time of application your loan officer
will quote you the current rate for the loan product you have decided
on. At that time you can choose to lock or float your rate.
If you decide to lock, the current rate is reserved for your loan. This
will be your rate at closing regardless of if rates increase or decrease.
If you decide to float you can watch the rates and lock in at any time
prior to closing documents being drawn. How long will it take to close my loan?The typical time allowed from application
to the closing is four weeks. Depending on your situation a loan
can be closed in as short as seven days, but however, we would like to
allow at least two full weeks. What is a loan processor?After you have submitted application with
a Mortgage Broker or loan originator, your file is turned over to the
loan processor. The processor orders all documents needed to complete
your application, submits your loan to underwriting, coordinates the closing
with all parties involved and becomes your contact person for loan status
information. What does the numbers such as 3/1 in Adjustable Rate Mortgages mean?The first number (3) represents the number
of years your initial rate is locked for. The second number (1)
is how often (in years) the rate can adjust after the initial lock period.
In this case your initial rate would be locked for 3 years but can adjust
once a year after that time. What is a second mortgage?Second Mortgages are
loans tied to the equity in your property, and in most cases the
interest is tax deductible. The money borrowed can be used for home
improvement, debt consolidation, financial investments, down payment
on another property or car loans. Canton Street Mortgage offers two
types of Second Mortgages, Equity Lines of Credit and Fixed Rate
Second Mortgages. What is an Equity Line of credit?These are open lines of credit that you can access through checks or a credit card. The rates and payments on these loans fluctuate depending on the current prime rate and your outstanding balance. These loans can be paid down and reused as needed. BACKWhat is a Fixed Rate Second Mortgages (FRSM)?These are installment loans that can be amortized over 5, 10, 20 or 30 years, the payment and rate are fixed for the term of the loan. |
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