Frequently Asked Questions
What is a "No-Cost" loan?
A "No-Cost" loan is a loan where the broker pays for all of the hard costs of closing the loan; appraisal, credit, title, etc… The borrower is only responsible for the down payment or payoff balance (depending on whether it is a purchase or a refinance), and the pre-paids (tax, insurance escrows, and interest).
How do I get a "No-Cost" loan?
Ask your loan officer, we will be happy to provide a quote!
What is the difference between an Origination and a Discount point?
An Origination point typically goes to the Broker as the fee for providing the loan. A Discount point typically gets paid to the lender to buy down the interest rate.
Do I have to pay an Origination point, or a discount point?
In most circumstances, no! Typically on a conventional loan, the interest rate is .250% better for each point that you pay. Sometimes however, it does not make sense to pay any points. It usually takes about 5 years to recoup the money spent on points. In other words, the money that you will save every month by paying one, two, or even three points won't equal the cost of the points for about 60 payments (5 years).
If I am self-employed, can I get a mortgage loan?
Yes! Even if you have only been self-employed for just a year!
How much must I have for a down payment?
Legacy Mortgage Corp. has purchase programs that allow for $0.00, 3%, or more down. With 5% or greater down payment the best rates typically apply.
If I put less than 20% down, will I have mortgage insurance (PMI)?
Generally in situations (either purchase or refinance) where the Loan-To-Value is between 80% and 95% Legacy Mortgage Corp. seeks to provide a first mortgage for 80% and a second mortgage for the remaining balance. The net payment will be less than what it would be with mortgage insurance, and the interest write-off benefits for tax purposes are usually greater.
How long does it take to complete a loan application?
A. It takes about ten minutes over the telephone to complete a loan application, or about the same amount of time on the secure web site, or even in person!
How long does the mortgage process usually take?
Typically, once we have the loan application either via the telephone, internet, or in person, it takes about an hour to pull credit and obtain an approval. It usually takes less than 30 days to obtain all of the necessary documents and close.
