Your monthly payments go partly to repay your loan and partly to pay the fees for your loan, many of them relating to the closing, or settlement.
Most lenders require an up-front application fee to cover their expenses as they approve you. But PacAlly doesn’t. That’s right – with us, it’s free to apply!
Additionally, lenders charge a loan origination fee. It’s generally expressed as a single point (a point is defined as 1 percent of your loan amount). For example, if you were borrowing $100,000, your loan origination point would be $1,000 ($100,000 x 1%).
What are the loan costs that are included in my loan payment?
At the least, your loan payment will consist of the principal and interest for one month. In some states, you may electo to have your insurance and taxes prorated and added onto the monthly clost. In other states, it may be required that you pay for insurance and taxes as part of your loan monthly payment. This money would be placed in an impound or escrow account by the lender.
PacificAllyMortgage.com fees are the same regardless of application method.
For a purchase loan, PacificAllyMortgage.com pays the appraisal cost and doesn’t charge you until your loan closes. PacificAllyMortgage.com will hire the appraiser. Most lenders pass this cost on to you immediately. The appraisal determines the value of the property in question, which becomes a prime factor in determining the loan-to-value (LTV) ratio (the amount of your loan divided by the value of your property), Your LTV is important because it determines your equity in the property.
PacificAllyMortgage.com offers loans with and without closing costs, depending upon what type of loan you want and the amount of money you are borrowing.
PacificAllyMortgage.com give you the option of rolling these funds into your loan amount. This allows you to get your loan with no out-of-pocket expense, but your loan amount will be slightly higher. The alternative to rolling the costs into your loan is to provide these funds yourself when the loan closes. You”ll be borrowing a smaller loan than with a roll-in, but you will incur immediate out-0f-pocket expense.