How
do you determine my rate?
How
long can I lock my mortgage?
Why
are purchase and refinance points different?
How long
are the rates you quote valid?
Are
the rates the same whether I’m buying a home or refinancing?
What are
your fees?
What other
costs are there?
How do
I use negative points?
Can I
use Federal Fidelity when I am buying a new home
from a builder?
How do you
determine my rate?
Rates are determined by overall risk. Three risk factors enter into determining
your rate: your credit, your equity, and your income.
How long can I lock my mortgage?
Rates are usually quoted for settlements occurring within 30 calendar days of
the lock. Longer locks are available for additional cost. Please email
us for specifics.
Why
are purchase and refinance points different?
Wholesale lenders offer us purchase incentives that are passed on to
the borrower through lower quotes. Why are incentives given? On an average,
purchase loans close more often than refinance loans close.
How
long are the rates you quote valid?
Like any other commodity, the price for money changes constantly, just
like soybean futures or pork bellies. We get the day’s rates from dozens
of wholesalers mid to late morning, and shop them for the most competitive.
Should the wholesalers re-price during the day, we always try to update
the quotes to reflect the new rates. Unless such a price change occurs,
the rates are good through the end of the business day.
Are the rates the same whether
I’m buying a home or refinancing?
Our quotes for home purchases are slightly lower than a refinance quote.
How
do I lock in my mortgage?
To lock your mortgage, we must first receive two things:
1. The completed loan application and disclosures with your original
signatures. This requires you to first apply online. We review the application
(usually the same day!) and email it back to you so you can print, sign,
and mail it back to us.
2. Payment for the independent appraiser who will evaluate
the property. (Whether you decide to lock or float, the
appraisal and credit report usually need to happen right
away. Since we are dealing with outside parties, we need
your payment for these services in hand before we can order
them.)
You may decide to lock your mortgage as soon as we receive
your signed application or you may want to float up and
down with the market. Once you decide to lock, you only
need to email or phone us, telling us to lock your mortgage.
Should you use email, be certain we have replied well before
the 4:45 pm cut off or a phone call is required.
What
are your fees?
Our compensation is 1% of the loan amount with a minimum of $2,995. You
will find this fee disclosed clearly on the HUD 1 statement. This fee
can be paid by the wholesale lender, the borrower, or a combination depending
on what rate and point combination you choose. Through the use of negative
points (explained below), you can even get a no closing cost loan! We
can advise on which alternative would be best for your situation. Any
combination you choose will save you more money than what you would get
through a direct lender on the retail side. Shop
our rates.
As you’re loan shopping, make sure that in addition to
interest rates and points, you also compare lender fees.
Look for charges such as those outlined above. You’ll find
a lot of variation between lenders. It does no good to
find low rates/points if you aren’t careful to add in all
extra fees that may be buried in the fine print
What
other costs are there?
There is one other category of costs: third party fees. Third party fees
include those that are due the title company, appraiser, and, the government
through recordation and transfer taxes. Lenders and brokers have no control
over these fees. The only variation depends on the state and county in
which you choose to buy. We can give you an accurate estimate on these
fees, and also let you know the amount of cash that will be required
at settlement.
How
do I use negative points?
In exchange for paying a slightly higher interest rate, the lender will
pay some or all of your third party fees. This is great for first
time buyers who are short on cash and usually only plan
to keep the loan for a short period of time. Depending on the loan amount
and type of loan, there may be limits on the number of negative points
you are allowed. This is certainly one of the things we’ll discuss with
you.
We can help you weigh the pros and cons of different loan
types and structures for your needs, whether your priority
is maximum buying power, lowest monthly payment, equity
accumulation, or conserving your up-front cash. Just remember,
you can often buy a new
home for less than you can lease
a new apartment!
Can I
use Federal Fidelity Mortgage when I am buying a new home
from a builder?
Absolutely! Builders usually like buyers to use their preferred lender
because they will get a kickback for sending that lender business. Unfortunately,
the buyer ultimately pays those kickbacks in the end. Because they have
such a sure lead source, the builder-recommended lender often quotes points
and fees that are far from competitive. They don’t need to be. We have
had buyers add verbiage to their purchase contract stating that if the
builder’s preferred lender can’t meet or beat Federal
Fidelity Mortgage's interest rate, points, and fees, the incentives
will still be given!
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regular
basis. Knowing the truth can save you money whether you're trying
to refinance or buying a home for the first time. As with every big purchase
you make, study the options before deciding which solution is best for
you. 
