Frequently Asked Questions about Online Home Mortgage Loans

Find answers here to frequently asked questions about finding your mortgage online and using it to buy your property.

What is PMI?

PMI stands for Private Mortgage Insurance and it is an additional fee/insurance premium that is automatically added to certain mortgages if the amount of the loan exceeds the value of the home. This is another good reason to save up a 20% down payment for your home before shopping for a mortgage. PMI is not terribly expensive, but it is an added expense that can add up over a good deal of time until either you pay off 20% of the loan compared to the house value or your home's value appreciates significantly enough to give you 20% equity.

Which is better fixed rate or adjustable?

That depends on you and the reason for your loan. If you have the means and are going to be able to pay off your loan quickly, then the benefit of the lower introductory interest rate of an ARM might be well-suited for you. However, if you are buying this home for the "long haul" then you probably want to stick with a conventional loan unless you have a stellar credit rating and believe that you could successfully refinance an ARM before the interest rate begins to adjust after the stable term expires.

Can I get government loans?

If you qualify for them you can. FHA loans are available to first-time homebuyers usually, but there are some exceptions where they can be made available to someone who has purchased a home in the past. VA loans are only available to United States military members who are active duty, discharged - other than dishonorable, or retired.

What if my credit isn't good?

Then your best bet would be to do what you can to improve it before applying for a loan. Online home mortgage lenders take very seriously the presentation of a poor credit score or report and may deny you a loan or offer you one at very unfavorable terms (high interest rate). Even paying down your credit card balances or clearing up a single collections account can have a significant effect on your credit score and improve the loan that you will be offered by various lenders.

Are you a lender?

No. The owners of this site do not write home mortgage loans. This site simply acts as a free referral service to a network of lenders from around the nation.

What types of loans are available through your network?

Conventional loans, fixed rate loans, adjustable rate mortgages, partial loans, refinances, and home equity loans and lines of credit are available among others.