FAQ
How much home can I afford?
Lenders use cost and debt ratios to determine how much home you can afford. To determine your cost ratio,
take the proposed total monthly house payment and divide by your monthly gross income. The cost ratio
should not exceed 33%. To determine your debt ratio, take the proposed total monthly house payment plus your
monthly debt and divide by your monthly gross income. The debt ratio should not exceed 45%. When determining
how much you can afford, your safest bet is to consult me at 952.277.3000.
When is the right time to refinance?
You should consult your mortgage professional about refinancing when interest rates experience a significant
decrease. However, even if rates are rising, it may still make sense to consider refinancing. Refinancing
makes sense if you can obtain a lower rate than you currently pay. Refinancing makes sense if you want to tap
into the equity you've built in your home. Refinancing makes sense if you have an adjustable rate mortgage
and want to switch to a fixed rate. Whatever your reason is for considering refinancing, call me
at 952.277.3000 and I will assist you in determining if
refinancing makes sense for you.
What is my credit score?
Your credit score is a three digit number that typically ranges from 350 to 850. The credit score is an estimation
of a consumer's willingness and ability to repay debt based on previous behavior. Creditors typically assign grades
to credit scores and use these grades to determine interest rates and loan features. Call me
at 952.277.3000 to discuss your credit score and ways to improve it.
Why did my realtor, friend, or relative refer me to you?
Satisfied clients make it possible for me to build my business on referrals. My top priority is providing my clients
with the highest level of service possible. Realtors and past clients recognize that I offer great advice, rates, and
products. In addition, they appreciate my honesty, integrity, loyalty, and dependability. If you would like to work
with a competent professional who is committed to going above and beyond client expectations, call me
at 952.277.3000.
Why and how do interest rates change?
Interest rates change on a daily and sometimes hourly basis. Rates fluctuate in response to changes in the bond market.
Bond traders try to anticipate Federal Reserve monetary policy and analyze economic data. Since the Federal Reserve
monetary policy and economic data can be difficult to predict, interest rate movements are also difficult to predict.
Call me at 952.277.3000 to discuss current market conditions.
What is an origination fee?
An origination fee is an expense collected by the lender as part of your closing costs. Rates are typically quoted
assuming a 1% origination fee.
What is title insurance?
Title insurance protects you and your lender from disputes over ownership of your property. Legally, you are required
to purchase lender's title insurance to protect against any claims on the property after closing.
What is mortgage insurance?
Mortgage insurance is required when the down payment is less than 20%. Mortgage insurance protects the lender in event
of loan default. Mortgage insurance is an extra expense that is added to your monthly mortgage payment.