FAQs
What is a mortgage broker?
A mortgage broker by definition is an agent who buys or sells mortgages for a principal on commission without having title to the property. Let’s simplify it. A mortgage broker is a company/person that facilitates a mortgage between lender and client. Bet you’re saying to yourself right now: “Why don’t I just go directly to the lender and save myself money?” That would be true if all rates, costs and fees were created equal. However, they are NOT.
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What is a Mortgage interest rate lock?
A lock-in, also called a rate-lock or rate commitment, is a lender’s promise to hold a certain interest rate and a certain cost for you, usually for a specified period of time, while your loan application is processed.
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What is an Escrow Account?
In the U.S., an escrow payment: is common term referring to the portion of the mortgage payment that is designated to pay real property taxes and hazard insurance. It is an amount “over and above “the principal and interest portion of a mortgage payment.
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What are Third Party costs?
Third party fees are pretty straightforward: fees from a third party that usually don’t involve the lender. These third parties can be attorneys, insurance agencies or any association important to the home loan process that, again, the lender is not a part of. Third party fees are part of your closing costs, but are not the entire cost. Many people get confused by third party fees because they don’t ask their mortgage company what these fees are which are used to cover a number of different services.
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