Contact Us | Interest Rates | Loan Programs | Home | Mortgage Qualifier | Mortgage Application | Company Info

On a purchase loan, you can expect three major expenses. These costs are down payment, closing cost and your prepaid items.

Typically, down payment on a convential mortgage is 5% or greater. With some programs your down payment can be as little as 3%; however, this may incur higher fees. The amount of money you put down helps to determine your Loan to Value Ratio (LTV). The more money you put down, the lower your LTV. Any LTV over 80% will require Private Mortgage Insurance (PMI).

Closing cost is the cost of obtaining a loan. It is the money paid to us, the ultimate Lender, the State, the Title Company, the Survey Company, and the Pest Inspection Company, etc. These are the actual expenses as incurred and charged by the various parties to complete the transaction.

Prepaid items are the cost of establishing an escrow account to pay your property taxes and hazard insurances. It also includes the prepaid interest on the new loan.