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Consumer
Service!
Fees
Insurance
Loan Lock Periods
What are
points?
Points are charges levied by the lender based on the loan amount. Each point is
one percent of the loan amount; for example, two points of a $100,000 mortgage
is $2,000.
What is
the APR?
APR is an acronym for Annual Percentage Rate. This is the actual interest rate,
taking into account points and other finance charges, for the projected life of
a mortgage. Disclosure of the APR is required by the Truth-In-Lending Law and
allows borrowers to compare the actual costs of different mortgage loans.
What is
the origination fee?
The origination fee is the amount charged by a lender to originate and close a
mortgage loan. Origination fees are usually expressed in points.
What are
the closing costs?
Closing costs are fees payable when the purchase or refinance of a property is
finalized. The amount of these costs range from zero to eight percent of the
mortgage amount, and usually include but are not limited to the following:
- Processing
- Escrow
- Title Insurance
- Appraisal
- Lender Fees
- Credit Report
- Courier charges
- Miscellaneous closing costs
What is
private mortgage insurance?
Private mortgage insurance protects lenders against loss due to foreclosure or
loan default. Mortgage insurance is required on loans with LTVs greater than
80%.
When can I
lock-in the interest rate and how long is the lock valid?
Locking in an interest rate guarantees that specific rate and loan product. You
are able to lock-in a rate once all paperwork has been received and reviewed by
Alliance Home Mortgage. Lock-ins are usually valid for 30 days. Longer lock
periods are available; however, loan points increase with a longer lock period.
Is there a
cost to lock-in my rate?
Usually there is no fee.
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