Home Loan & Mortgage FAQs

Do you have questions? We can help!

You will find the answers to Frequently Asked Questions (FAQs) regarding mortgage & loans below. If you have a question not listed here, please feel free to contact us at anytime.

Usually people refinance to save money by obtaining a lower interest rate. Refinancing is also a way to convert an adjustable loan to a fixed loan, or to consolidate debt. Traditionally, people would refinance only if the rate difference was significant, as it did not make sense to pay closing costs to save a small amount monthly. However, a No-Cost Refinance Program now makes refinancing for smaller rate changes more appealing.

On qualifying loans, Mortgage Financial offers a No Closing Cost Refinance Program that truly has NO COSTS. This means no points, no hidden fees, and no surprises!

It’s simple…we pay all the closing costs out of our commission and we do not increase your loan amount to cover those closing costs. That’s it! Yes, you pay a slightly higher interest rate, usually 1/8th-1/4% higher, but you save all of the closing costs. No appraisal fees, no attorney’s fees…NO FEES PERIOD! But does a higher rate really make sense? More often than not, the answer is yes!

A Rate Lock is a contractual agreement between the lender and the buyer. There are four components to a Rate Lock: loan program, interest rate, points (if any), and the length of the lock.

We are a Mortgage Lender. Unlike Mortgage Brokers, lenders underwrite and fund loans in-house. By maintaining this control, we can approve loans faster and we can be more flexible about when the loan closes. Unlike banks and credit unions, we have many investor outlets that allow us increased flexibility and ongoing great rates.

A Conforming Loan is a loan eligible for purchase by the two major Federal agencies that buy mortgages, Fannie Mae and Freddie Mac. The current Vermont maximum for a conforming loan is $417,000.

Points are upfront finance charges paid at closing to reduce your interest rate. Points are expressed as a percent of the loan amount.  For example, “2 points” means a charge equal to 2% of the loan balance. Each point you pay drops your interest rate by approximately 0.25%.

A Jumbo Mortgage is a loan larger than the maximum eligible for a conforming purchase by the two Federal agencies, Fannie Mae and Freddie Mac. For more information on the different types of mortgages available, visit our Mortgage Programs page.

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