Metropolitan Mortgage

Questions answered and explained.

Answers

What makes Metropolitan Mortgage Group different from other mortgage brokers?
Here at Metropolitan Mortgage, we believe that our personal attention to you and your needs makes us different from other brokers. Our goal is to build a relationship with each individual we serve; to see where they are coming from and understand what it is they are looking for. Whether you are purchasing or refinancing a property, we want you to rely on us, trust us, and feel comfortable with us. We will do our utmost to make the process of buying or refinancing as understandable and as painless as possible. Buying or refinancing a home should be a positive life memory.
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How much do I need for a down payment?
It is possible that a down payment might not even be necessary, but the usual amount varies between 3.5 and 20 percent of the purchase price.
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What is an ARM?
An Adjustable Rate Mortgage is loan that has a fixed interest rate for a set period of time. After the fixed period, the rate is subject to change according to the London Interbank Offering Rate (LIBOR).
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How long will the loan process take?
It usually takes between 20 – 45 days to process your loan. Once the loan application has been completed, we will be in constant contact with you concerning the status of your loan.
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What is a Yield Spread Premium, sometimes referred to as "YSP" within the industry?
A Yield Spread Premium is compensation received by the broker from the lender as a result of the borrower receiving a higher interest rate.
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Which types of properties can be financed?
You can receive financing on stick built residential, mobile homes, rental, multi-family, and commercial properties - mixed use (residential/commercial), farms, grocery stores, repair shops, etc.
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How often do interest rates change?
Interest rates change daily and sometimes several times daily based on the bond market. Rates are also dependent on the type of mortgage you might have.
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Are interest rates going up or down?
It is impossible to determine the direction of interest rates. As the bond market changes daily, no one can predict its fluctuations or, subsequently, which direction rates will go.
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When should I lock in an interest rate?
After an initial meeting with your mortgage consultant and filling out any necessary paperwork, the decision to lock in a rate is up to you. It is most important that you feel comfortable with the loan process, with Metropolitan Mortgage, and have gained an understanding of the whole process before you sign anything or lock in a rate.
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How much are closing costs?
Closing costs and title insurance vary from area to area. Upon completion of your initial application, we will prepare for you a Good Faith Estimate, which will provide you a detailed breakdown of all the costs related to your purchase or refinance.
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Can I finance all of my closing costs?
Most of our products allow you to finance closing costs into your new mortgage loan as long as there is enough equity in the loan. You may also pay a higher interest rate to cover your closing costs.
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What is and will I have to pay an Origination Fee?
An origination fee is a percent of the principal loan amount and covers the processing and closing costs associated with your mortgage loan. An origination fee may be waived as Metropolitan may be paid a Yield Spread Premium from the lender as a result of the consumer receiving a higher interest rate.
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How can I obtain the lowest possible monthly payment?
There are loan programs that enable you to defer a portion of your monthly interest also known as an Option ARM. It is important to fully understand the program. Please consult your mortgage advisor.
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