Vishal Mongia – Mortage Loan Officer

Refinancing your mortgage means paying off your existing loan and replacing with a new one. While refinancing may lower your interest rate, save thousands of dollars and cut years off of your mortgage, or convert from ARM to fixed mortgage rate, or cash out to go on a dream vacation, remember that these benefits can have advantages or can be a pitfall. At times refinancing can cost 3 to 6% of the loan's principal, similar to original mortgage, requires appraisal fee, title fees, application fees, etc, it's important for Refinancing your mortgage means paying off your existing loan and replacing with a new one. While refinancing may lower your interest rate, save thousands of dollars and cut years off of your mortgage, or convert from ARM to fixed mortgage rate, or cash out to go on a dream vacation, remember that these benefits can have advantages or can be a pitfall. At times refinancing can cost 3 to 6% of the loan's principal, similar to original mortgage, requires appraisal fee, title fees, application fees, etc, it's important for Refinancing your mortgage means paying off your existing loan and replacing with a new one. While refinancing may lower your interest rate, save thousands of dollars and cut years off of your mortgage, or convert from ARM to fixed mortgage rate, or cash out to go on a dream vacation, remember that these benefits can have advantages or can be a pitfall. At times refinancing can cost 3 to 6% of the loan's principal, similar to original mortgage, requires appraisal fee, title fees, application fees, etc, it's important for you to determine whether your reason to refinance is offering a true benefit.

A loan with Adjustable Rate Loan has a fluctuating interest rate( also known as variable-rate mortgage). The interest rate adjusts over time to reflect market conditions. Once the initial fixed period of the mortgage rate (which likely will be lower) is completed, a lender will apply a new rate based on the index plus a set margin amount, to calculate the new rate. This new rate may increase or decrease your monthly payments. However most ARMs have limits on how much the interest rate can be changed at the end of each adjustment period or over the life of the loan. ARMs come in many types, the most popular is a hybrid ARM, with popular option 5/1 ARM, followed by the 3/1, 7/1 and 10/1 ARM.

The most common type of home loan is fixed rate mortgage, which means, the interest rate will not change for the life of loan.

Interest Rate refers to the annual cost of a loan to a borrower and is expressed as a percentage, whereas, APR is the annual cost of a loan to a borrower including fees (such as discount points, some closing cost, etc.), expressed as percentage.

An escrow account is a separate account to guarantee the lender that the ongoing expenses of owning he property will be handled specifically taxes and insurance. The lender collects the funds to be deposited into the account each month along with your monthly payment and then pays the bills for you when they come due.

Buying home can be confusing, especially for the first time buyers. One frequently misunderstood area is closing costs. These are the costs that are incurred to obtain your mortgage and are paid to the third parties for their services.

Your lender may ask for many different items, but in general following will be required:Income verification (Last 2 years tax returns, W-2s, 1099s, and your last 2 pay stubs),Drivers' license and Social Security card,Bank statements ,Proof of funds to close (and an explanation of where they came from, if it's not obvious),If some or all of your down payment is coming from a gift, you will need gift letter from the source of the funds that confirm they are gift, not a loan,If there are any debts, explanation of the credit report anomalies.