We at REFG hope the following list of frequently asked questions is both helpful and informative. Please feel free to contact us if your question does not appear here. We are happy to answer any question. Remember, the average person only deals with the financing process once every three to five years. We understand that there is no way for you to know all of the answers. That is why we are here.
Isn't it true that all mortgage companies are basically the same? No. There are a number of tiers in the mortgage business depending on the experience, qualifications, financial net worth, loan volume, and loan performance. Depending on where a company fits within these categories will determine the type of investor they are able to become approved with and the type of pricing they can offer.
Real Estate Finance Group is in the upper tiers in all of these categories. As such, we have attained delegated underwriting authority, and have been approved with the most discerning investors. In addition, our loan volumes, loan performance, and low maintenance business relationship make us an attractive partner to our mortgage investors. In return, we receive premium pricing and are allowed to control the service delivery for the benefit of our clients. There are many companies that fall into lower tiers because they cannot manage their operation as well and do not have the experience or performance to be an attractive partner. As such, mortgage investors will offer to purchase their loans at a higher price in order to cover the higher risk.
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In comparing interest rates, isn't the lowest rate the best deal for me? Not necessarily. There are four moving parts in a mortgage quote. There is the interest rate, the origination fee, the discount points, and the closing costs (fees). Many times a fast salesperson will be able to pick up on the factor you are looking for and offer you an attractive proposition without letting you know how the other items change in the process. This can make for quite a surprise at closing. In order to know what you are getting into, you need to get the full quote. Back to Top
What is more important the quoted rate or the APR? The APR calculation is a governmentally derived formulae that was meant to level the playing field and give consumers more information. However, there are a number problems with the calculation.
First, it is very complicated to comply with and many lenders are not really able to make the calculation correctly. Second, it takes your closing costs and spreads them over the term of the loan. For example, if you really kept your loan for thirty years (on a fixed rate) then the APR would be accurate. If you pay off the loan earlier, then the APR figures truly understate the total costs of your mortgage. Third, there are a number of closing costs that are not included in the APR calculation even though you will pay them at closing. Appraisals, credit reports, title searches, surveys, state tax stamps, mortgage deed stamps title insurance are not considered to be finance charges. Again the APR figure understates the true financing costs. In our opinion, the APR number is not a reliable figure from which to make a judgment about one rate quote being better than another.
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REFG does not specialize in FHA government loans. However, we provide veteran (VA) government loans and also have a sub prime department for credit challenged clients.
REFG handles Refinance (Cash-out and No-Cash-out); Purchases (Primary, Secondary, and Investment Property); Construction loans (Construction -Perm, Rehabilitation, and Remodeling); Home Equity Lines of Credit.
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