| Frequently
Asked Questions (FAQs) |
General
FAQs
What is the difference between a mortgage broker
and a direct lender?
Does MidAmerican Home Services Mortgage charge
an application fee?
Why do most lenders charge up-front fees just
to apply for a mortgage?
Can I obtain home financing without paying points
and / or closing costs?
Do I have to make an office visit to apply for
a home loan?
How do I close my loan?
What are points?
What is APR?
Is it a good idea to shop for a loan on the
basis of comparing the APR?
What is difference between a fixed-rate loan
and an adjustable-rate loan?
What is a teaser rate?
When can I lock in my rate?
What is mortgage insurance and when do I need
it?
Is there a way to avoid mortgage insurance?
What is a conforming or jumbo loan?
What are Freddie Mac and Fannie Mae?
What are FHA loans?
Can I purchase a home or refinance with FHA
financing when applying with MidAmerican Home Services Mortgage?
|
Homebuying FAQs
How much cash do I need for a down payment?
Should I apply for a loan before I start looking for property?
|
Refinancing FAQs
What are the advantages of refinancing a home?
What are the benefits of consolidating debt by refinancing my mortgage?
If I currently have mortgage insurance, will refinancing eliminate it?
|
Home Equity FAQs
What are the benefits of taking out a home equity loan?
How long does it take to get a home equity loan?
What's the difference between a home equity line of credit (HELOC) and a home equity loan?
How does a home equity line of credit (HELOC) work?
How much do I qualify for?
How much equity do I need in my home in order to qualify for a home equity loan?
How is the APR on a credit line calculated?
Does MidAmerican Mortgage Home Services charge any application fees, points, or closing fees on HELOCs or home equity loans?
How can I have my funds disbursed to me?
Is there a minimum or maximum credit amount?
Can I pay off my home equity loan or HELOC early?
|
|
| General FAQs |
What is the difference between a mortgage
broker and a direct lender?
A mortgage broker is a middleman who tries to find a home
loan with a lender who will pay them commissions on your loan.
That cost is often passed on to you.
Direct lenders handle the entire process from origination
to funding; they make the approval decision on each loan and
are the actual source for the funds. Because they control
the process, direct lenders generally offer better rates and
fees and provide faster service. By using a direct lender,
you can eliminate the additional cost layers that are inherent
with the use of intermediaries. |
Why do most lenders charge up-front
fees just to apply for a mortgage?
Some lenders will charge you an up-front fee of $300 to $500
to apply, usually an application or appraisal fee. It is a
good idea to find out if this fee is refundable in the event
the loan does not close or you decide to cancel. To eliminate
this risk, look for a lender that does not charge a fee to
apply. MidAmerican Home Services Mortgage never charges an
application fee; thus, our customers are free to shop, inquire,
and compare without risk or obligation. |
Does MidAmerican Home Services Mortgage
charge an application fee?
No. MidAmerican Home Services Mortgage does not charge an
application fee. We invite you to apply now or become pre-approved
for your home loan, and continue to shop for the best rates,
fees and products that meet your needs. We're confident few
can beat our service or low prices. |
Can I obtain home financing without
paying points and / or closing costs?
Yes. MidAmerican Home Services Mortgage offers home finance
options that have no points or closing costs for qualified
borrowers. |
Do I have to make an office visit to apply
for a home loan?
Although most lenders will require you to make an office visit
during the course of getting your loan, MidAmerican Home Services
Mortgage does not require an office visit. You can apply online
or call 1-800-247-2430 to speak with an expert Loan Consultant.
Either way we are available on your terms. |
How do I close my loan?
We handle all the paperwork. Once your documents are ready
to sign, we will schedule a notary public or settlement agent
to come to your office or home (when possible). It's that
easy. Due to the nature of our home equity products, it is
necessary for borrowers to visit a notary office to sign their
paperwork. |
What are points?
Points are a method of reducing the interest rate you would
pay on a loan. One point is equivalent to 1% of the loan amount.
For example, 2 points on a loan amount of $200,000 would be
$4,000. In general, a loan requiring 2 points has a lower
interest rate than one with 1 point or 0 points, but you would
pay the higher amount of fees from the increased points in
your closing costs. Paying points may be a more attractive
option for those planning to stay in their new home for longer
periods of time, usually at least three years or more. This
is because the amount you save with a reduced interest rate
increases every year you hold the mortgage. |
What is APR?
APR is the abbreviation for Annual Percentage Rate. The APR
is not the interest rate on the loan and the APR is not used
to calculate your monthly payments. The APR is the cost of
the credit as a yearly rate. Included in the calculations
of APR, are the loan amount, interest rate, and certain fees
categorized as finance charges. |
Is it a good idea to shop for a loan on the
basis of comparing the APR?
The APR should be used when comparing loans. Another valuable
comparison can be made by evaluating the APR and interest
rate for loans of the same type and term, and then comparing
the applicable points and total closing costs. Choosing a
lender like MidAmerican Home Services Mortgage that quotes
all of the pricing information upfront, and locks those costs,
will secure you against unpleasant suprises throughout the
process of obtaining your home loan. |
What is the difference between a fixed-rate
loan and an adjustable-rate loan?
A fixed-rate loan is one where the interest rate remains constant
throughout the entire term. An adjustable-rate mortgage will
generally start off at a lower rate, but then will adjust
at specific time periods throughout the life of the loan. |
What is a teaser rate?
A teaser rate, a.k.a. an introductory rate, is a low initial
rate on an adjustable-rate mortgage, or a home equity line
of credit. It is critical to analyze the terms of such a rate,
as it may be short in duration or have other conditions. |
When can I lock in my rate?
With MidAmerican Home Services Mortgage you can lock in an
interest rate at anytime after you've applied. Typically,
the lock-in deposit is $600, but may be as high as $1,000
for longer-term locks, jumbo loans, or other special circumstances.
The lock-in deposit is applied as a credit to your closing
costs and is generally non-refundable. |
What is mortgage insurance and when do I
need it?
Mortgage insurance - or PMI (private mortgage insurance) as
it is frequently called, is the added amount a borrower is
required to pay when the loan to value ratio on the property
being mortgaged is greater than 80%. The mortgage insurance
protects the lender against default, not the borrower. |
Is there a way to avoid mortgage insurance?
Yes. At MidAmerican Home Services Mortgage we offer several
programs with no PMI required. Ask our knowledgeable loan
consultants about these programs. |
What is a conforming or jumbo loan?
A conforming loan fits the guidelines established by the
Federal Home Loan Mortgage Corportation (Freddie Mac) and
/ or Federal National Mortgage Association (Fannie Mae).
For 2004 those guidelines are:
• 1 Unit - up to $417,000 (up to $625,500 in Alaska
and Hawaii)
• 2 Units - up to $533,850 (up to $800,775 in Alaska
and Hawaii)
• 3 Units - up to $645,300 (up to $967,950 in Alaska
and Hawaii)
• 4 Units - up to $801,950 (up to $1,202,925
in Alaska and Hawaii)
|
What are Freddie Mac and Fannie Mae?
Freddie Mac refers to the Federal Home Loan Mortgage Corporation
and Fannie Mae refers to the Federal National Mortgage Association.
Both are government sponsored entities (GSEs) created by Congress
to buy loans from lending institutions. |
What are FHA loans?
FHA loans are loans that are underwritten according to the
guidelines established by the Federal Housing Administration,
which is a government agency under the direction of the Department
of Housing and Urban Development (HUD). FHA loans are often
more lenient than those set by conventional types of loans,
and the FHA requires a seller to pay for many of the fees
associated with selling a property, often making them more
attractive to borrowers who qualify. |
Can I purchase a home or refinance with
FHA financing when applying with MidAmerican Mortgage Home
Services?
Yes. MidAmerican Home Services Mortgage is a direct lender
approved to offer FHA loans. Certain restrictions apply to
this transaction. Ask our knowledgeable loan consultants about
all of the options available in the FHA program. |
|
| Homebuying FAQs |
How much cash do I need for a down payment?
MidAmerican Home Services Mortgage requires as little as 3%
of the purchase price as a down payment as well as a no down
payment option. The down payment amount required does vary
by loan type and purchase price, so please discuss the exact
down payment requirements with a MidAmerican Home Services
Mortgage loan consultant regarding the loan you are interested
in. |
Should I apply for a loan before I start
looking for a property?
Yes. By applying and getting pre-approved you will be better
prepared to know ahead of time how much you can afford. |
|
| Refinancing FAQs |
What are the advantages of refinancing a
home?
The advantages of refinancing your home mortgage may include
the following:
• Stability - Converting an adjustable-rate mortgage
to a fixed-rate mortgage means that your montly payments will
remain at a constant level with no suprise increases. Please
not that while the principal and interest portion of your
monthly payment remain the same, real estate taxes may cause
the monthly payment to change.
• Savings - Reduce your monthly mortgage payments by
refinancing a lower interest rate when rates are low to save
money each month.
• Tax Deduction - Get a tax deduction on the amount
you refinance, even if you take cash out to use for other
purposes. Consult your tax advisor to determine how much of
a refinanced payment may be tax-deductable.
• Increased Value - Use additional cash from a refinance
to improve your home and increase its value.
• Decrease Loan Term - Reduce the amount of total interest
paid on your mortgage by reducing your mortgage term from
30 years to 20, 15, or 10 years. |
What are the benefits of consolidating debt
by refinancing my mortgage?
There can be many benefits to refinancing, including:
• Saving money by reducing your current monthly payments.
• Increasing your tax deductions by financing other
needs with a mortgage (consult your tax advisor).
• Eliminating monthly bill payments, by consolidating
all your debt into one monthly mortgage payment. |
If I currently have mortgage insurance, will
refinancing eliminate it?
It is possible to eliminate current mortgage insurance payments
when you refinance.
Criteria:
• Your home has appreciated sufficiently so that your
loan amount would be no more than 80% of the new appraised
value. |
|
| Home Equity FAQs |
What are the benefits of taking out a home
equity loan?
Taking out a home equity loan allows you to consolidate other
debts you may have or use the equity you've built in your
home to get cash for other purposes, such as home improvement,
financing a child's education, a new car, or other personal
needs. In addition, you can realize:
• Savings - Consolidating debt from other sources with
higher interest rates may mean overall lower monthly payments.
• Tax Deduction - Get a tax deduction on the amount
of your home equity loan interest payments, even if you take
cash out to use for other purposes. Consult with your tax
advisor to determine deductability of interest.
• Convenience - You can consolidate bills into one monthly
payment. |
How long does it take to get a home equity
loan?
You can close your home equity loan with MidAmerican Home
Services Mortgage in as little as 14 business days, depending
on where you live. |
What's the difference between a home equity
line of credit (HELOC) and a home equity loan?
With a HELOC, you are qualified for a maximum credit line
that you can borrow from on a revolving basis, like a credit
card. The interest rate on a HELOC is typically an adustable-rate
that fluctuates with the pre-determined index, usually the
prime rate published in major daily newspapers, plus a margin.
Your monthly payment will change as your loan balance and
interest rate change.
A home equity loan offers a fixed interest rate over the life
of the loan. With this type of loan, you are approved for
a specific amount of cash that you receive in one lump sum.
The monthly payments are made on a schedule, like any installment
loan such as an auto loan. |
How does a home equity line of credit (HELOC)
work?
Because you can withdraw funds up to your maximum approved
line amount at any time during the draw period (seven years),
a home equity line of credit is similar to a credit card.
As you pay back the outstanding balance each month, your available
funds increase. The monthly payment amount will adjust as
your outstanding balance and interest rate changes. |
How much do I qualify for?
You can call one of our knowledgeable loan consultants toll-free
at 1-800-XXX-XXXX and get preapproved in minutes right over
the phone. You can also access our equity calculator to get
a general idea of how much you are eligible to borrow, based
on the equity in your home. Once you submit a full application
online or over the phone, our loan experts will be able to
tell you the amount, interest rate, and monthly payments that
you qualify for. |
How much equity do I need in my home in order
to qualify for a home equity loan?
On a primary residence, MidAmerican Home Services Mortgage
can lend up to 100% of the value of your home, up to a maximum
loan amount of $500,000 less the amount you owe on your mortgage.
Call for details. |
How is the APR on a credit line calculated?
The APR is the cost of the credit as a yearly rate. Included
in the calculation of APR, are the loan amount, interest rate,
and certain fees categorized as finance charges. The annual
percentage rate (APR) does not take into account all the fees
charged. Currently, we charge no fees that would be included
in the finance charge for the APR calculation. It is based
on the prime rate as published in the Wall Street Journal,
plus the applicable margin. When comparing lenders and products,
it is important to compare all of the costs of the loan in
addition to the APR. |
Does MidAmerican Home Services Mortgage charge
any application fees, points, or closing fees on HELOCs or
home equity loans?
There are no application costs or fees associated with these
transactions. However, there is an annual membership fee of
$50 for the home equity line of credit. This fee is waived
for the first year. If you close a HELOC or home equity account
within 24 months of opening it, we will charge you an early
account closure penalty of $300. |
How can I have my funds disbursed to me?
Once your equity loan transaction is completed, MidAmerican
Home Services Mortgage will send you a disbursement check
for the total amount applied for and approved by MidAmerican
Home Services Mortgage, minus any funds disbursed to your
creditors. |
Is there a minimum or maximum credit amount?
Yes. The minimum equity line or equity loan amount is $7,500
($10,001 in Arizona), up to a maximum credit limit of $500,000
if you qualify. |
Can I pay off my home equity loan or HELOC early?
Yes. To obtain an accurate payoff amount contact us at 1-800-XXX-XXXX.
You can then pay off your home equity loan by mailing us a
check for the outstanding balance.
You may prepay all or any amount owing under your home equity
credit line at any time without penalty, as long as the account
is not closed. If you close a HELOC or home equity loan account
within 24 months after the account was opened we will charge
you an early account closure penalty of $300. |
Equal Housing Lender