Frequently Asked Questions

If you are comparing loans across lenders, be sure to look at all costs, not just the interest rate. The annual percentage rate (APR) tells you the estimated cost of your loan, which includes the interest rate and other upfront fees that you pay for the loan (such as discount points and origination fees). The APR is based on the assumption that you'll keep the loan for its entire term, so you should only use it to compare loans of the same type and length. Contact U.S. today at 1-312-448-8763 or via our contact page for more information.

An index is a published rate used by lenders to calculate interest adjustments on ARMs (Index + Margin = Interest Rate). Some indexes may adjust more frequently than others. Common indexes used are LIBOR (London Interbank Offered Rate), Treasury rates, and the prime rate. Contact U.S. today at 1-312-448-8763 or via our contact page for more information.

Closing costs are fees incurred in a real estate or mortgage transaction and paid by borrower and/or seller during a mortgage closing. These typically include a loan origination fee, discount points, attorney's fees, title insurance, appraisal, survey and any items that must be prepaid, such as taxes and insurance escrow payments. Your lender will give you a copy of your Loan Estimate that outlines all the closing costs associated with your loan soon after you apply. Contact U.S. today at 1-312-448-8763 or via our contact page for more information.

Third-party fees are costs associated with your mortgage that go to a third-party for services. Lenders typically have no control over most of these fees. Third-party fees include, but are not limited to, credit report fees, hazard insurance, appraisal fees and title company search fees. Contact U.S. today at 1-312-448-8763 or via our contact page for more information.

An origination fee is a fee a lender charges to process a mortgage, usually expressed as a percentage of the loan which pays for the work in evaluating and processing the loan. Contact U.S. today at 1-312-448-8763 or via our contact page for more information.

Prepaid interest is a cost charged to a borrower at closing to cover interest on the loan for the extra days in addition to a full month before the first payment is due. Contact U.S. today at 1-312-448-8763 or via our contact page for more information.

PMI is private mortgage insurance, which you'll need to pay for if your down payment is less than 20% of the purchase price or if the loan has more than an 80% loan-to-value (LTV) ratio. Even if you're refinancing, you'll need to pay PMI as long as your LTV remains above 80%. Contact U.S. today at 1-312-448-8763 or via our contact page for more information.

Homeowners insurance is an insurance policy you have on your property, which protects you and the lender against accidents and loss of property or its contents. Mortgage insurance, on the other hand, protects the lender against losses due to default of a mortgage. Contact U.S. today at 1-312-448-8763 or via our contact page for more information.

Mortgage insurance costs are based on loan-to-value (LTV) and credit profile and can vary across lenders. Contact U.S. today at 1-312-448-8763 or via our contact page for more information.

Title insurance is insurance that protects the lender or buyer against loss from defects that might exist in the title to a property. In order to protect your loan "investment", a lender will typically require the seller to pay for "lender's coverage" title insurance. You can choose "owner's coverage" to protect your investment in the title of your property. Contact U.S. today at 1-312-448-8763 or via our contact page for more information.