Home Loan Frequently Asked Questions

1. What is the difference between a First & Second Mortgage?

A first mortgage is the primary loan on your home. A second mortgage is any loan that you take out on the equity you have built in your home. Equity is the appraised value of your home minus what you owe on the first mortgage.

2. What is the processing time for a 1st mortgage?

Generally, a first mortgage can close in four to five weeks.

3. What is the processing time for a 2nd mortgage?

Approximately 2 – 3 weeks.

4. What is the processing time for a Home Equity Line of Credit?

Approximately 2 – 3 weeks.

5. How does a Home Equity Line of Credit work?

With a Home Equity Line of Credit, or HELOC, you have control over how much you need to borrow and when. You pay interest only on the amount you borrow. The maximum you can borrow on a HELOC is $150,000.

6. What is LTV (loan to value) and how is it calculated?

The acronym LTV means loan to value and is calculated by dividing the loan amount (all liens) by the value of the property. (CLTV)

7. What are closing costs?

Closing costs are charges and fees that apply to mortgage loans. Generally, these fees include, but are not limited to, application fees, appraisals, title insurance, doc stamps, recording fees, etc.

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