Joe Knows Mortgages Minute
What is a Rate Lock Period?
A rate lock or a rate commitment is a lender's promise to hold a specific interest rate and fee for you for a specific period of time while your application is being processed.
Can You Roll Your Closing Costs Into Your VA Loan?
Can I roll my closing costs into my VA loan when purchasing a home? If you are a veteran who is looking to purchase a home using VA benefits, the only additional cost that may be rolled into your VA loan, is a VA funding fee. Per the VA, "no other fees [...]
What is a COE?
COE stands for "Certificate of Eligibility". The COE verifies, to the lender, that you are eligible for a VA-backed loan
Can you use a VA Loan if a Prior VA Loan was Foreclosed on?
Can you use a VA Loan if a Prior VA Loan was Foreclosed on? Welcome to Joe Knows Mortgages MINUTE, where we answer your mortgage questions. On this week’s Joe Knows Mortgages MINUTE, we answer the question: Can you use a VA Loan if a prior VA loan was foreclosed on? It [...]
What Costs are Included in my Monthly Mortgage Payment?
What Costs are Included in my Monthly Mortgage Payment? In order to fully understand your monthly mortgage payment, you need to know what other fees may be added based on your down payment. There are four main components of your mortgage payment to consider: Principal Interest Taxes Insurance This is also known [...]
What is the difference between Interest Rate and APR?
Annual Percentage Rate (APR) is also expressed as a percentage rate; however, it is a broader measure of the cost of borrowing the money. APR includes other charges and fees such as the interest rate, points, mortgage broker fees, and other charges that you pay to get the loan.
What is a Conventional Loan?
A Conventional Loan is any loan that is not a government loan. An example of a government loan would be a VA loan, an FHA loan, or a USDA loan. These loans are all guaranteed or insured by the government.
What is Mortgage Insurance?
Typically, if a borrower makes a down payment less than 20% of the purchase price of the home on a conventional conforming loan, they will need the loan insured in some way.
What are the Max Seller Concessions on a VA Loan?
On a VA loan, the seller may pay all of the veteran borrowers normal and customary closing costs. However, the VA also says that, in addition to normal and customary closings costs, the seller may pay up to 4% of the purchase price in “seller concessions”
What Do Sellers Have To Pay For On A VA Loan?
The answer is that the VA does not require that the seller pay any specific fees. The VA just says that there is a list of fees that the buyer cannot pay. If the seller is required to pay fees, that would be negotiated and part of the real estate contract.