Mortgage FAQs
What is a point?
A point is equal to one percent of the loan amount. For example, if you get a mortgage for $100,000 with one point, you'll pay $1,000 in points as part of your closing costs.
We have various interest rates and point options. For example, you can choose to pay zero points by accepting a higher interest rate. By paying more points, you can obtain a lower interest rate and monthly payment. We would be glad to help you evaluate various options.
What is the difference between interest “rate” and “APR” (annual percentage rate)?
The interest rate percentage reflects the annual cost of the loan to the borrower, without fees charged for the loan. The annual percentage rate (APR) reflects the effective annual cost including interest and certain fees or other charges, such as loan origination fees, points, most closing costs, and if applicable, mortgage insurance. When comparing different options, you will want to consider not only the interest rate but also the APR, which is helpful in comparing certain mortgage loan costs.
What is the turnaround time, from application through closing, for purchases and refinances?
The time it takes to close a mortgage loan varies with the type of mortgage, and buyer and homeowner situations. A mortgage loan for a home purchase can take as little as 30 days from application, but this will vary depending on the closing date listed on the sales contract. A mortgage refinance generally takes between 45 and 60 days from application to close. An incomplete application can delay the process.
Once we start the application process, it’s vital to get your required information and documents to us at the requested time. We want to close your loan quickly, and we need your help to ensure we have a completed application and all supporting documentation to make a final loan decision.
What does "pre-qualified" mean?
Being pre-qualified means we have completed an initial review of your loan application and credit report and determined that, based on the information available at this stage, your loan request appears to meet the preliminary requirements for the program. It is an important first step in the mortgage process, but it is not the same as a final loan approval. Final approval is issued only after you provide all required documentation, the information is verified, and underwriting completes a full review of your file and approves the submitted details.
When and how do I lock in my rate? Can I change my rate once I have locked in my rate?
You may lock in your interest rate up to 10 business days before your scheduled loan closing, provided we have received your completed loan application, the property address for your refinance or new home purchase. Locking your rate means the interest rate is secured for the specific lock period you choose, helping protect you from market rate changes during that time. Once your rate is locked, it generally cannot be changed unless there is a change to the terms of your loan, such as the loan amount, loan program, property type, credit profile, closing date, or other qualifying details that may affect pricing. If any loan terms change after the rate is locked, we will review the updated information and let you know whether the locked rate or pricing is impacted.
What closing costs are involved in getting a mortgage?
Closing costs are expenses associated with any home loan at the closing of a real estate transaction. Closing costs vary, and options for paying those costs may also vary. Your mortgage loan officer can give you an estimate. Learn more about closing costs.
Will you sell my mortgage loan?
We may sell some of our mortgage loans, but with the help of our trusted servicing partner, we maintain the servicing for many loans we make.