FREQUENTLY ASKED QUESTIONS

Q: Is applying for a mortgage loan on-line safe? Will my personal information be protected?

A: We use the best technology to ensure that all of your information is safe. We protect our members by using a number of different security measures. We have invested in VeriSign's secure server digital certificate to protect your data. Through the use of Secure Socket Layer (SSL) technology, the standard for secure communications on the Web, your data is being sent to a secure database and is encrypted to protect your privacy.

Q: What are the advantages of applying for a mortgage on-line?

A: If you're looking for a mortgage it may be tempting to pick up the phone book or to visit your local bank. Before you do-check out some of the advantages of shopping online for a mortgage.

To get an accurate cost comparison of traditional lenders you need to contact each of them and spend time collecting the appropriate information to decide who has the best mortgage available. That in itself can be rather time consuming, and interest rates often change daily. If you don't get all of your quotes in the same day you still may not know who has the best rate. The web makes getting an accurate mortgage comparison easier than ever!

Best of all, you can apply for the loan at your convenience.

There's no need to make an appointment with a loan officer when you choose to apply online. You can complete the loan application in the morning or at midnight in the convenience of  your own home without any pressure to make a final decision until you are ready.

At any time we will provide personalized support during the entire process. You can all or email a mortgage loan officer who will answer your questions.

Q: What is an adjustable rate mortgage?

A: An adjustable rate mortgage, or "ARM" is a loan that offers a lower initial interest rate than most fixed rate loans. The difference is that the interest rate can change from time to time, usually as it relates to an index, and the monthly payment will move up or down with the index.

Other information you should know about Adjustable Rate Mortgages:

• Adjustment Period-With most ARMs, the interest rate and monthly payment are fixed for a certain time period, which is often one year, three years, five years, or seven years. After the initial fixed time period, the interest rate can change every year.
• Index-ARM interest rate changes are tied to changes in an index rate. Using an index to determine future rate adjustments provides you with assurance that rate adjustments will be based on actual market conditions at the time the adjustment is made. The current index is usually published weekly in the Wall Street Journal. If the index rate moves up, your mortgage rate will move up. If the index rate goes down your monthly payment may decrease.

Q: How much money will I save by choosing a 15-year loan rather than a 30-year loan?

A: A 15 year fixed rate mortgage gives you the ability to own your home in 15 years. And, while the monthly payments are somewhat higher than a 30-year loan, the interest rate on the 15-year mortgage is  usually a little lower, and more important-you will pay less than half the total interest cost of the traditional 30-year mortgage.

However, if you can't afford the monthly payment of a 15-year mortgage, you're not alone. Many borrowers find the higher payment out of reach and choose a 30-year mortgage. For most people it still makes sense to choose a 30-year mortgage.

Q: What is title insurance and why do I need it?

A: The answer is simple: The purchase of a home is most likely one of the most expensive and important purchases you will ever make. You, and especially your mortgage lender, want to make sure the property is indeed yours: That no individual or government entity has any right, lien, claim, or encumbrance on your property.

The function of the title insurance company is to make sure your rights and interests to the property are clear, that transfer of title takes place efficiently and correctly, and that your interests as a home buyer are fully protected.

Title insurance companies provide services to buyers, sellers, real estate developers, builders, mortgage lenders, and others who have an interest in real estate transfer. Title companies typically issue two types of policies:

1.Owner's Policy-This policy covers you, the home owner.

2. Lender's Policy-This policy covers the lending institution over the life of the loan.

Both types of policies are issued at the time of closing for a one-time premium, if the loan is a purchase. If you are refinancing your home, you may already have an owner's policy that was issued when you purchased the property, so we may only require that a lender's policy be issued.

Before issuing a policy, the title company performs an in-depth search of the public records to determine if anyone other than you has an interest in the property. The search may be performed by the title company personnel using either public records or, more likely, the information contained in the company's own title plant.

The fact that companies try to eliminate risks before they develop makes title insurance very different from other types of insurance. Most forms of insurance assume risks by providing financial protection through a pooling of risks for losses arising from an unforeseen future even, like a fire, accident or theft. On the other hand, the purpose of the insurance is to eliminate risks and prevent losses caused by defects in title that my have happened in the past.

Q: How do I determine whether or not to refinance my existing home?

A: There are a few things to consider when deciding whether or not to refinance your existing home:

• Using the equity in your home may have tax deduction advantages for you. You should consult with a tax advisor to determine these advantages.
• If the interest rate on your current mortgage is higher than the current market rate, the savings may be significant by refinancing to a lower rate.
• You can use your home's equity to make home improvements, finance tuition expenses, consolidate debt and more.
• If you refinance your Adjustable Rate Mortgage to a fixed rate mortgage you will know exactly what the payment amount and interest rate will be for the life of the loan.