Current Utah Mortgage Rates
Quick Mortgage Definitions / Terms / Facts
May I pay additional points to reduce my interest rate?Yes, you may pay additional points to lower your interest rate. During the application process, you will select what rate and fees you would like.
What is an assumption?
An assumption is the process of a borrower transferring their property ownership to someone else. There are two different types of assumptions, simple and qualifying. The transaction you are trying to accomplish determines which type of assumption is applicable to your loan. Also, your Deed of Trust may prohibit a qualifying assumption.
A simple assumption is a transfer of mortgaged property from one or more persons to another. It is called "simple" because this type of an assumption requires the signing of only a few documents to transfer "ownership" of the property to someone else. An example of a simple assumption is the death or divorce of a co-borrower where the borrower wants the co-borrowers name removed from the loan. In the case of a simple assumption, the "liability" of the mortgage debt is not transferred. The remaining borrower is still responsible for repaying the balance of the loan.
A qualifying assumption involves the sale of the property and requires the buyer to qualify for the mortgage, just like if they were applying for a new loan. A qualifying assumption transfers ownership and the "liability" for the repayment of the loan to the buyer of the property. Most loans today, if assumable, are qualifying assumptions.
First Steps to Getting a Mortgage?
Get a Free Credit Report!The first step to getting a mortgage is to know your credit score. Understanding your credit report is a critical part to getting your mortgage. Raise your score while you shop for your home to get the lowest rate at closing, with a few easy steps you can easily raise your score in within a few months.
