What Clients Ask The Most

What is Debt to Income Ratio?

Is the sum of all your current financial obligations. This may include debts like: car loans, credit card bills, child support, condominium fees and student loans.

What is the Loan to Value Ratio?

It shows how much of your house is being financed. For example, if your house is worth $100,000 and you are financing $75,000 of it, your loan-to-value ratio would be 75%. Lower LTV ratios carry lower risk, and therefore may have lower interest rates.

What is PMI or Private Mortage Insurance

Private Mortgage Insurance is provided by a Private Mortgage Insurance company in order to protect Lenders against loss if a borrower defaults. Private Mortgage Insurance is generally required for a loan with an initial Loan To Value (LTV) percentage in excess of 80%. In most cases, this will mean that you will have to pay Private Mortgage Insurance if your down payment is less than 20% of the value of the home you are purchasing or refinancing.

What are the closing costs?

Closing costs include items like Appraisal Inspection fees, Title Search, Title Insurance fees, Attorney fees, pre-paid interest, Government and Documentation fees. These items vary for each customer due to differences in the type of mortgage, the property location and many other factors.