Questions & Answers
Normally, our fees are paid by the lender at the close of escrow. However, you may opt to pay these fees (a.k.a. Points) to lower your interest rate and monthly payments. Paid at closing, Points can be tax deductible.
What is the difference between JCF ADVISORS and your bank or an "In-House Loan Agent"?
Heading to the nearest bank to get your loan gives you only one perspective. You're subject to their terms, guidelines and interest rates. Generally, retail banks have higher loan fees and (or) interest rates. "In-House Loan Agents" (contractors of the Realty Company) do have access to more than one lender but are sometimes under intense pressure from the realty agents and their managers to just close the deal. These circumstances often produce hasty work and missed opportunities for better rates. Using JCF ADVISORS gets you lower rates, better service, an array of different loan types and an equitable relationship where your financial goals are nurtured even after the transaction is complete.
What is the maximum amount you can lend?
Due to our exclusive lending relationships, there is no restricted lending amounts.
Can you compete with private banking?
We have the ability to beat private banking options and /or refer you to opportunities offered exclusively to clients of JCF ADVISORS.
Can you perform Tenant in Common loans?
Joey Fishman, Senior Mortgage Advisor, Managing Partner, is extensively experienced in these type of transactions. Whether a new or an existing TIC, he is able to close loans quicker and at a lower rate.
Whether financing points from personal savings or adding the cost to your loan amount, it is not advisable to pay points if you plan on refinancing or retiring your loan within a few years. JCF ADVISORS will help you to determine whether or not you should pay points by examining several scenarios based upon two factors: 1. The expected time you plan on holding your loan 2. Your individual financial goals The scenarios will include comparing the total loan fees and monthly payments on the same loan product (i.e., a 30 year fixed) when points are paid versus a "no points" loan. The analysis will include calculating your "break even" point. Your break even point is the point in time in which the dollar amount of money you have saved on your monthly mortgage payment equals the dollar amount you paid up front for points. It is only after you reach this point that you begin to realize monthly savings. To perfect the break even point analysis, a calculation for the time value of money may be performed. It is also wise to consider where your funds are best invested. You may determine that the long term rate of return on your investments exceeds the rate paid on your mortgage, adjusted for taxes.
Why do we include Taxes and Insurance as a monthly cost when quoting you?
There are two reasons for this; 1. Lenders rely heavily on PITI (Principal + Interest + Taxes + Insurance) for qualification and reserve purposes, therefore, so should we; and 2. It's to your benefit to know the average monthly costs of owning your home.
Why is the annual percentage rate (APR) different from the note rate?
The Federal Truth in Lending law requires mortgage companies to disclose the APR when they advertise rates. The APR was meant to allow consumers to easily compare loan programs. An APR factors the cost of borrowing in with the note rate. Unfortunately, lenders can legally calculate APRs differently. A loan with a lower APR may not be the most competitive. The APR can be confusing because the rules for calculating them are not clearly defined. The following are most often included when calculating the APR:
- Document preparation (lender)
- Loan processing
- Pre-paid interest – Interest paid from the date the loan closes through the end of the month
- Points
- Private mortgage insurance
- Underwriting
Third party fees for the title insurance, escrow, attorney, notary, credit report, recording and appraisal are generally NOT included in the APR calculation. The APR does NOT affect your monthly payment. Your monthly payment is based upon your note rate and the amortization period. What matters when obtaining a Loan? Income Employment Status and History Credit History Debt (Debt-to-Income) Assets (Liquid) Occupancy Type (Primary Residence, 2nd Home or Non-Owner) Property Value and Characteristics
What documents are needed to process your loan?
This depends on an array of factors ranging from your employment status, current portfolio of properties owned, to your "cash to close" (down-payment, if any, escrow fees and reserve requirements). Our initial consultation will determine which documents are required.
There are two types of closing costs, recurring and non-recurring. Non-recurring closing costs include loan points and origination fees, broker fees, lender fees, appraisal and credit report charges, and the costs of title insurance and escrow. Recurring costs include prepaid interest, insurance premiums, and property taxes. JCF ADVISORS can provide you with a good faith estimate of closing costs for the loan you have chosen.
Why is it important to have your documents readily available?
Real Estate transactions are subject to many time-lines, be it contractual performance or lock expiration. It is vital to gather necessary (loan) documents as quickly as possible to avoid costly delays.
Conditional Approval means the lender has given preliminary approval of your file. They supply us with a list of conditions that need to be met before final approval (commitment) is granted. These conditions must be reviewed and signed off by the lender before moving on to the next step of the process.
This is the insurance you pay to cover the possible damages that can occur to your home. When purchasing Real Estate, the lender requires you to pay for the entire year upfront. If you are buying a condominium, your Home Owners' Association fee normally cover this insurance.
