What is a Home Equity Loan?
A Home Equity Loan, also known as a second mortgage, allows you to borrow a one-time disbursement of funds*, using the equity in your current home or property as collateral. Your interest rate is usually fixed and the loan is amortized over a fixed term. Like a traditional mortgage, you borrow a set amount, you receive the set amount of funds in one disbursement and then you pay that loan back with interest over a set amount of time.

* You may borrow up to 100% of the equity in your home. Because you have the option to rescind or cancel your loan for up to 3-days following the closing, your money will not be distributed until the end of this 3-day rescission period.

-Top of FAQs-

Will you check my credit if I complete your online application?
The choice is yours. The sooner we can review your credit history, the faster we can qualify you for a loan and make you an offer. However, if you would prefer to speak with a loan consultant before we review your credit history, we can do that, too. We will only make a credit inquiry if you indicate that you want us to do so by checking the credit box on the last page of the online application.

With that said, we would like to remind you that credit inquiries are only damaging to your credit score when you have too many of them. The good news is that all mortgage-related credit inquiries in a 2-week period are always counted as one transaction. To keep inquires on your report to a minimum, we recommend that you do all of your “comparison-shopping” within a 2 or 3 week period. Don’t let fear of credit damage limit the number of applications that you complete.

-Top of FAQs-

Can I finance 100% of my loan?
We recommend that you make a down payment of at least 20% to avoid mortgage insurance. Although, if you are not able to make a sizable down payment, we do offer 100% financing and minimal down payment options. These programs, however, are not available over the Internet. It is also important to note that these low/no down payment options carry substantially higher interest rates and can only be obtained by borrowers with excellent credit.

-Top of FAQs-

I have not yet applied. Who do I contact for general information and questions regarding your services?
If you have not been assigned a personal loan officer or underwriter, you can speak with one of our qualified loan consultants by calling 877-621-9777.

-Top of FAQs-

Is there any cost to apply?
No. We do not require an up-front fee to submit an application and begin the loan process. You will be required to make a good faith deposit once your application is in process; however, this payment is not a fee, it is a deposit that will later be credited toward your closing costs.

-Top of FAQs-

How do I determine how much I can afford to borrow?
Our calculators are easy-to-use tools for estimating your buying power. By entering a monthly mortgage payment that suits your budget, our calculator will tally the maximum loan amount you can afford to borrow based on a default interest rate and term. You can also enter today's current rates or a different term for more accurate answers, or you may prefer to speak directly with one of our qualified loan specialists at 877-621-9777.

-Top of FAQs-

How long will it take for my loan to be approved?
Upon receipt and verification of all required supporting information and documentation, we can approve your loan within 1 business day if your loan qualifies for one of our automated underwriting systems. Even if you do not qualify for desktop underwriting, your loan can be approved quickly, provided we have obtained sufficient up-front information from you.

-Top of FAQs-

What is the difference between the APR and the stated interest rate?
APR calculates the total cost of a mortgage loan and expresses it as a yearly rate. That means that APR takes into account mortgage insurance, points and certain fees paid at origination, in addition to your monthly interest payment. This generally results in a rate slightly higher than the stated interest rate on the loan.

APR is often said to be, “the best apples to apples comparison” when rate shopping among mortgage lenders because it is calculated according to a federally mandated procedure. For example, some mortgage lenders will state a very low interest rate, but then tack on several origination fees, increasing the actual cost of the loan. Other lenders may state a higher rate, but then decide to charge minimal origination fees, thereby balancing out the total cost of the loan. If you were to compare the stated interest rates alone, you would likely assume that the lender offering the lower rate has the best price, but that may not always be the case. Since items, like origination fees, are included in the APR calculation, it is a more accurate depiction of the actual cost of the loan.

-Top of FAQs-

What are the differences between fixed and adjustable rate mortgages?
Adjustable rate mortgages (ARMs) offer a lower initial interest rate than most fixed rates loans; however, the interest rate can change periodically (usually in relation to an index) and your monthly mortgage payment will go up or down accordingly. With a fixed rate mortgage, your interest rate and monthly mortgage payments will stay the same for the life of your loan, regardless of market conditions. When weighing the advantages and disadvantages of both, it is important to consider how much risk you are willing to assume. For many people, an ARM is the right mortgage choice, particularly if your income is likely to increase in the future or if you only plan on being in the home for 3 to 5 years. On the other hand, if you are looking to put the kids through college or buy a new car in the future, then a fixed rate mortgage is a safer choice.

-Top of FAQs-

How do I know if it's best to lock my rate or let it float?
Mortgage interest rate movements are as hard to predict as the stock market, and no one can really know for certain whether they'll go up or down.

If you have a hunch that rates are on an upward trend, then you'll want to consider locking the rate as soon as you are able. Before you decide to lock, make sure that your loan can close within the lock in period. It won't do you any good to lock your rate if you can't close during the rate lock period. If you think rates might drop while your loan is being processed, take a risk and let your rate "float" instead of locking. You can watch rates and lock in at any time.* It's a good idea to discuss your options with your loan officer - he or she is an excellent resource for rate information.

*You must lock your rate at least 5 days prior to closing.

-Top of FAQs-

Loan Process  

Licensed States  

Processing & Underwriting  

Glossary of Terms  

FAQs