Current Wisconsin Mortgage Rates
Quick Mortgage Definitions / Terms / Facts
What is the 30 Year, 3/1 ARM?zionmortgages.com has attracted much attention by providing exclusive loan programs that provide the security of a fixed rate with the lower rate benefits of an ARM. This loan offers a low fixed rate that can only adjust after 3 years, at which point it will adjust yearly for the remaining 30 year term, according to the weekly average yield of the one-year LIBOR. Interest rate adjustments have a 2.25% margin, with an annual 2% adjustment cap, and 10% lifetime adjustment cap from the start rate. A lower rate means a lower payment, which allows you to qualify for a larger home.
What is PMI and why is it required?
Private mortgage insurance PMI is insurance written by a private company that protects the lender from losses in the event the borrower defaults on the mortgage. Borrowers are required to pay the premium for private mortgage insurance. Private mortgage insurance limits a lender’s exposure to financial loss resulting from loan default. If you make a down payment of less than 20%, you are generally required to pay private mortgage insurance.
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.
