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Contact Info:
51 Atlantic Avenue
Marblehead MA 01945


Commonly Asked Questions
Who do I contact for general information and questions regarding your services?
If you have not been assigned a personal loan officer , you can speak with one of our experienced mortgage specialists by calling (781) 639-9909. Our business hours are Monday through Friday, 9 am to 5 pm EST. Saturday by appointment only. 
Will you check my credit if I complete your online application ?
Yes, we will. This allows us to get an accurate information quickly and find a program that fits your needs.
What are Closing Costs ?
Closing costs are costs associated with the loan closing, while settlement charges include closing costs, pre-paid interest, escrow reserves for taxes and insurance, and the down payment (if the loan is a for a home purchase). Closing costs and settlement charges are listed on the Good Faith Estimate (GFE) during the loan application and on the HUD at the closing. Be aware that the Good Faith Estimate is only an estimate, and actual fees may differ from the estimate at closing. The exact numbers are going to be displayed on your HUD Settlement Statement on the day of, or the day before the actual closing, as allowed by RESPA. Let the lender know that you will want to see the HUD-1 Settlement Statement before closing and question any amount that you do not understand. As soon as the HUD is prepared, you can close. Since most people want to close as soon as possible, that's why you find out the exact costs the day of closing!The usual closing costs consist of the following items:
� Origination Fee (if any)
� Discount Fee (if any), those two items are called points
� Administrative Fee
� Underwriting Fee
� Processing Fee
� Attorney Fee
� Title Insurance
� Title Search
� Tax Service Fee
� Flood Fee
� Recording Fees
� Appraisal and Credit Report
The average closing costs for a loan amount of $125,000 is $2,000.
Mortgage Brokers have no control over lenders fees. Title insurance is usually $2.50 per thousand and lawyer fees are usually from $500 to $600.
What Are Points ?
Points are up-front mortgage interest fees paid on a loan to reduce the initial interest rate. One point is 1% of the loan amount. Usually, one point buys down a .25% on your rate. For example, a one point loan will always have a lower interest rate than a zero point loan. Therefore, paying points is a trade off between paying money now versus paying money later. Generally, you should only pay points if you plan on keeping the loan for at least four years. Because points are prepaid interest, you need to be sure you will keep the loan long enough to recoup these costs through lower monthly mortgage payments. If there is a chance you may move within a four year period or if the general interest rate market is declining (increasing the likelihood of refinancing), you should consider a no points or cash back loan. If you are purchasing a home, points are generally entirely deductible in the year you buy. 
What is APR ?
APRs are a way to calculate the annual cost of loans, taking into consideration loan origination fees (points, if any) and the other closing costs associated with securing a loan. It gives you a true cost of the loan. How ever, for each case the APR differs. Please, contact our loan officers directly in order to calculate APR for your loan. 
What is Mortgage Insurance (PMI) ?
Mortgage insurance protects the mortgage company against financial loss if a homeowner stops making mortgage payments. Mortgage companies usually require insurance on low down payment (less than 20%) loans for protection in the event that the homeowner fails to make his or her payments. 

When a homeowner fails to make the mortgage payments, a default occurs and the home goes into foreclosure. Both the homeowner and the mortgage insurer lose in a foreclosure. The homeowner loses the house and all of the money put into it. The mortgage insurer will then have to pay the mortgage company's claim on the defaulted loan. 

There are ways to avoid PMI. You can either get a "split" mortgage or get a special program with no MI (usually that means you get a higher rate). "Split" mortgage means you take two Mortgages: a first and a second. There are different types: 80/10/10 (10% -down payment, 10% -second mortgage and 80%- first mortgage), 80/15/5 or 75/15/10 or 80/20. The biggest advantage is, that after paying off your second mortgage, that usually has a slightly higher rate, you're going to be left with just low payment on your first one. Also, mortgage interest for both mortgages is deductible for income tax purposes opposed to PMI payment which is not. There is a new law that applies to loans funded after July of 1999.Lenders will allow borrowers to remove the MI requirement once the property's appraised value increases such that the loan to value ratio is below 80%. However, Fannie Mae and Freddie Mac have said they would honor the new laws on the old loans. 

You do need to review your loan document with your lender, because some of them require 25% equity. Usually the lender will require that an appraisal to be done by an approved appraisal company. Contact your current mortgage holder to determine their policy on removing mortgage insurance from an existing loan. Another means to remove the MI is to refinance the original mortgage, if you believe the value of the house went up considerably. However, if the current first mortgage held by a borrower is at favorable terms, it is definitely worth working with the current mortgage holder to eliminate. 
What is a "Credit Score" and how does it affect my mortgage ?
Credit score is a number that rates ability of an individual to pay back a loan. The following items are taken in consideration when assessing the credit risk of a loan applicant: past delinquencies, derogatory payment behavior, current debt level, length of credit history, type of credit, number of inquiries

For example, if you have too many (more than 3) inquires for the last 3 months, that can bring you score down up to 20 points. High balances on your revolving credit, even if you were never delinquent, can bring your score down up to 60 points. Recent delinquencies (less than 12 months ago), depending on how many months you are being late, can bring your score down from 20 to 100 points. Credit scoring will place borrowers in one of three general categories.
First, a borrower with a score 680 and above who may be considered an A+ loan. The loan will involve basic underwriting, probably through a "computerized automated underwriting" system and be completed within minutes. Borrowers falling into this category may have a good chance to obtain a lower rate of interest and close their loan within a 2 weeks of days. 

Second, a score below 680 but above 620 may indicate underwriters will take a closer look at the file in determining potential risks. Borrowers falling into this category may find the process and underwriting time no different than in the past. Supplemental credit documentation and letters of explanation may be required before an underwriting decision is made.Loans within this FICO scoring range may allow borrowers to obtain "A" pricing. 
Third, borrowers with a score below 600 may find themselves with rates a bit higher than the best loan rates and terms offered. There are alternate funding sources other than Fannie Mae (FNMA) and Freddie Mac (FHLMC) loans. 
There are A Minus programs available to 580 at good rates, and loans available to 500 credit scores, but the rates are higher and more money as a down payment may be required.
As more companies utilize credit scoring, the loan approval and closing time will be compressed for most consumers. In the future, a high FICO score may be your ticket to a speedy and competitively priced mortgage loan.  

How can I correct my credit history ?
You have the right, under the Fair Credit Reporting Act (FCRA), to dispute the accuracy of information in your credit file. When a credit reporting agency (CRA) receives a dispute, it must reinvestigate and record the current status of the disputed items. Usually it takes up to 4 weeks. Under the FCRA, both the CRA and the organization that provided the information to the CRA, such as a bank or credit card company, have responsibilities for correcting inaccurate or incomplete information in your report. To get the best results, contact both the CRA and the information provider. If the CRA cannot verify a disputed item, it must delete it. If your report contains erroneous information, the CRA must correct it. If an item is incomplete, the CRA must complete it. For example, if your file showed that you were late in making payments on accounts, but failed to show that you were no longer delinquent, the CRA must show that your payments are now current. If your file showed an account that belongs only to another person, the CRA would have to delete it. Also, at your request, the CRA must send a notice of correction to any report recipient who has checked your file in the past six months. In Massachusetts each individual is entitled to a free credit report from all three major credit bureaus once a year. You can order it using CRA phone numbers below or through CRA web site. There is no charge to dispute mistakes or outdated information on your credit record. Negative information can stay on your report for 7 years; bankruptcies for 10 years. Information about a lawsuit or judgment against you can be reported for seven years or until the statute of limitations runs out, whichever is longer. When the reinvestigation is complete, the CRA must give you the written results and a free copy of your report if the dispute results in a change. If an item is changed or removed, the CRA cannot put the disputed information back in your file unless the information provider verifies its accuracy and completeness, and the CRA gives you a written notice that includes the name, address, and phone number of the provider. 
Three Major Credit Bureaus:
Attn: Dispute Verification Process 
PO Box 105873 
Atlanta, GA 30348 
(800) 270-3435 
Fax: 770-375-2773 

There is not an option to speak with a Customer Service Representative. Equifax requires a consumer to obtain a copy of their credit file with a confirmation number assigned and then a telephone number will be given to speak with a representative. 

Attn: Profile MNTC Dept 
PO Box 2104 
Allen, TX 75013-2104 
(888) 397-3742 
Fax: 972-390-3838 
Risk Score Hotline (to explain scores) (800) 777-2066 

There is not an option to speak with a Customer Service Representative. Experian requires a consumer to obtain a copy of their credit file with a confirmation number assigned and then a telephone number will be given to speak with a representative. 

PO Box 390 
Springfield, PA 19064-0390 
(800) 888-4213 

To speak to a customer service representative - (800) 916-8800. Do not choose any option, stay on hold.  
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