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What are the loan products that fixedmortgage.com offers?
fixedmortgage.com offers 10-30 Year Fixed-Rate Loans, as well as a different Adjustable Rate Mortgage Programs. All of these loan programs could be used to either purchase a new property, or refinance an existing mortgage.
Choose Fixed-Rate if:
- You want monthly payments that will not change during the life of the loan.
- You plan to stay in the same house for a while.
If you have a fixed loan, your house payments are not affected by the change in the interest rates. For the life of the loan the payments will stay the same.
30-Year Fixed-Rate Loans are by far the most common and popular loans available. They are ideal for first-time buyers, and buyers with smaller reserves of cash.
Choose an Adjustable Rate Mortgage if:
- You want a loan that's generally easier to qualify for.
- You're planning to stay in your house for a short period of time.
- You are expecting a salary increase later, but want to qualify for a better home now.
  
How do I know what my loan rate will be?
Rates vary primarily based on the type and purpose of the loan, your credit history and income, loan amount, value of the property, and the number of points you are willing to pay. Once your are qualified for a loan program you will be able to see what rate you qualify for.
What does a lender look at to approve me?
- Borrowers credit history
- Property value
- Borrowers ability to repay debt
What are points and how many do I have to pay?
Generally speaking, points are fees used to bring down the rate. One point is equal to 1 percent of your loan amount.
How do I determine the points I want to pay?
When you get a loan, you'll have the opportunity to "buy down" the interest rate by paying discount points - essentially paying a fee to lower your interest rate.
By lowering your interest rate, you will be lowering your monthly payment and the amount of interest you'll be paying over the life of the loan. You pay more at the beginning of your loan but will save money in the long run. Keep this in mind as you determine whether to pay points.
Can I or my co-borrower be self-employed and still qualify for a loan?
Yes, self employed borrowers can qualify.
How can I draw credit when I need it?
As equity in you property increases you will have options of cashing out on this equity. It could be done through a cash-out refinance, or a Home Equity Line Of Credit (HELOC).
How do I calculate my loan-to-value ratio (LTV)?
LTV = Amount you are borrowing / Property Value
Why is the loan-to-value ratio important?
Your loan-to-value ratio (LTV) shows your equity in the property. Your equity is basically the amount of the property you own, expressed as a monetary figure. Another way of thinking of your equity is that it's the amount of money you'd receive if you sold your property at its valued price, less what you'd have to return to your lender to repay the loan. Example: $100,000 value minus $50,000 to repay loan = $50,000 equity. Your LTV and equity are crucial because common wisdom among lenders is that the higher the LTV (and the lower the equity), the higher the risk of a borrower defaulting on his or her loan. Thus, low equity loans present lenders with greater risk, forcing them to increase their costs.
Can I make extra principal payments so I can pay off the loan more quickly?
Depending on the loan, and what your state permits, it is feasible for you to make extra payments on the loan. Extra payments will have an effect on the amortization schedule over the remaining term of your loan.
Do I get a tax advantage from having a mortgage?
You should consult a tax attorney or accountant for specific details, but interest on a mortgage is usually tax deductible. Typically, interest on credit cards or automobile loans is not tax deductible.
Does fixedmortgage.com offer loans for mobile homes (manufactured houses)?
No, unfortunately we do not provide loans on manufactured houses.
How do I receive my loan documents?
After you complete your application with a loan agent, ditech.com will provide you with a package in one of two ways: via e-mail with a link to your Loan Status page or via express mail. This package will contain your loan application and disclosure documents.
Will a second mortgage allow me to borrow funds against my existing property?
Different options of borrowing against your property value:
• Home Equity Line of Credit
If you want a reserve of funds you can draw on in the future, choose our Home Equity Line of Credit. You'll have the credit you need when the need arises - and you make no monthly payments until you draw on it. Be ready for expenses like medical bills, emergency home repairs, tuition, and more.
• Home Equity Loan
If you want to borrow up to 100 percent of your home's value at a fixed rate of interest, choose our Home Equity Loan. Use those funds for a purchase opportunity, home maintenance, debt consolidation, or major expenses.
• High loan-to-value
If you want a large sum of cash, choose one of our High Loan-To-Value product - 125 percent Freedom Loan. With low equity - even no equity - ditech.com can still loan you the funds you need to make home improvements, consolidate debt, buy a car, or make an investment.
To learn more about these and other products, call us any time at 1-800-803-7656.
What is equity and how do I know how much equity I have in my property?
Equity is the value of a homeowner's interest in real estate. Equity is computed by subtracting the total of the unpaid mortgage balance and any outstanding liens or other debts against the property from the property's fair market value. A homeowner's equity increases as he or she pays off his or her mortgage or as the property appreciates in value. When a mortgage and all other debts against the property are paid in full, the homeowner has 100 percent equity in his or her property.
How do I calculate the value of my property?
Since a mortgage is a loan secured by a piece of real property, a crucial factor is in the correct value of the property in question.
Property value can be determined in a number of ways:
The market value of the property - that is, what a buyer will pay for it and what other comparable properties (comps) in the neighborhood have recently sold for.
The appraised value of the property - that is, what a trained and licensed professional deems the property to be worth based on an inspection, comps, and a thorough analysis of the property and its neighborhood.
Additionally, the appraiser estimates the replacement value of the property - that is, the cost to build a house of similar size and construction on a vacant lot. The appraiser reduces this cost by an age factor to take into account deterioration and depreciation.
What kind of information do I need to provide fixedmortgage.com?
After you complete your loan application, we will review it and contact you back with the list of programs that you qualify for. If you are pre-approved, you will need to provide us with additional information such as:
- Last 2 years W-2 or 1040 if self-employed
- Current Pay Stubs
- Lease/Rental Info
- Contract of sale (if purchase)
- Mortgage statement ( if refinance)
After your online pre-approval, you will be mailed a loan application for review. It will contain all of the information that you've entered into the loan application. Please review it carefully and make any corrections or changes that you feel are necessary.
What do I do if I have trouble filling out a section of the online application?
Fill out everything that you can (it will save automatically) and email us with any questions that you might have regarding the application after you receive answers from us you will be able to finish the application and continue with the loan process.
What happens after I apply for a loan online?
At fixedmortgage.com we will verify the information on your application. Assuming everything is correct and you are pre-approved you will be emailed by the loan processor that will guide you through the rest of the loan process.
What kind of security does the fixedmortgage.com website have?
We have taken many precautions to insure that fixedmortgage.com site is safe and secure. We use the industry-standard SSL protocol (Secure Sockets Layer) to ensure that all transactions are secure. The SSL system encrypts information that you submit to us via our our online loan application. Encryption makes it extremely difficult for anyone to intercept information that you have supplied on the application.
When you apply for a loan through fixedmortgage.com, we will ask you for your e-mail, address, telephone number as well as other loan-related information. We use this information to process your loan and to notify you of your application status. All archived information is maintained in a secure and safe environment. Telephone numbers and e-mail addresses are only used to contact you regarding your loan.
If I am still not comfortable with the security of the website, is there another way I can apply for a loan?
Please email us with your phone number at help@fixedmortgage.com and a loan specialist will contact you by phone.
You can also contact us by phone at 718-339-3600.
What are rates, terms, and APR?
All mortgages have an interest rate, a term, which is disclosed as an Annual Percentage Rate (APR). For example, a mortgage might be defined as a 30-Year Fixed Rate Loan at 7.625%, with an APR of 7.800%.
In this example, the mortgage term is 30 years. As the borrower, you will pay back the loan in installments over the course of 30 years.
The interest rate in this example is 7.625%. This means you must pay interest on the money you've borrowed at a rate of 7.625% per year. That is, in addition to paying back the loan, you will pay your lender an additional 7.625% of the current loan balance every year. This interest is basically the fee your lender charges you in return for lending you the money.
The Annual Percentage Rate (APR) is a measure of the cost of credit, expressed as a yearly rate. Because APR includes points and other costs such as origination fees, it's usually higher than the advertised rate. The APR allows you to compare different mortgages based on actual annual costs.
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