Mortgage FAQ'sQ: What is the difference between a bank and a mortgage company?
A: Both banks and mortgage companies can make mortgage loans. Banks, however, can also take deposits of your money, which can be placed into a savings account or checking account, but mortgage companies cannot take deposits.
Q: What is the highest rate of interest I can be charged on a mortgage loan?
A: PL 96-221 (a federal law) eliminated interest rate ceilings on all first lien mortgage loans in 1981.
Q: Does a federally related mortgage loan only involve FHA, VA or other government sponsored loans?
A: No, RESPA covers most conventional loans too. See the statute or regulations for the definition of a federally related mortgage loan.
Q: Are home equity loans covered under RESPA?
A: Yes, home equity loans secured by residential property are covered.
Q: Must a mortgage broker disclose payments he receives that the borrower does not pay for directly?
A: Yes. The mortgage broker must disclose all payments and fees he receives whether they are received directly from the borrower or indirectly from the lender.
Q: Must a mortgage servicing transfer notice be given for a prospective table funded transaction?
A: Yes, by the mortgage broker.
Q: How do I apply for a VA guaranteed loan?
A: You can apply for a VA loan with any mortgage lender that participates in the VA home loan program. At some point, you will need to get a Certificate of Eligibility from VA to prove to the lender that you are eligible for a VA loan.
Q: Where a mortgage broker is used, is it the mortgage broker's responsibility to provide the Good Faith Estimate (GFE) to consumers, or is that the lender's responsibility?
A: If the mortgage broker is not an exclusive agent of the lender, the broker should provide a GFE within 3 days of receiving an application. The lender is not required to send an additional GFE; however, it is the lender's responsibility to ascertain that one was sent and includes an estimate of all costs that are likely to occur. Where the broker is the exclusive agent of the lender, either the broker or the lender shall provide the GFE.
Q: What Is Property Tax?
A: Property tax is a local tax that is imposed by local government taxing districts and is based on a property’s value. Property taxes are collected and spent at the local level and is a major source of tax revenue for local government taxing districts.
Q: Who Pays Property Taxes and Who Is Affected By Them?
Anyone that owns real property such as land, buildings, and permanent fixtures such as fences, landscaping, driveways, sewers, or drains.
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