Frequently Asked Loan and Mortgage Questions
Get the answers to your most common loan & mortgage questions
We would be surprised if you didn’t have questions about getting a loan. Navigating the mortgage loan process is a challenge.
Luckily, the experts at Loan One, a division of Benchmark Bank, can help you every step of the way.
Check out some of the frequently asked questions about home loans, refinancing and mortgages to help you find out more information:
- What can I expect in the home loan process?
- What is the difference between rate and A.P.R.?
- Should I lock in my rate?
- What is PMI?
Q: What can I expect in the home loan process?
A: There are four main steps involved in the home loan process. They are as follows:
- Identifying your needs
- Loan Approval
Q: What is the difference between mortgage interest rates and A.P.R.’s?
A: An A.P.R. represents the true cost of your loan. Included in an A.P.R. is your interest rate, your points, additional fees and terms of your mortgage. We recommend finding an interest rate and A.P.R. with a small spread.
Q. Should I lock in my rate
A. Locking in your rate allows you to have a guaranteed specific interest rate for a specific amount of time. Shorter lock-in periods have a lower interest rate.
Q. What is PMI?
A. Private Mortgage Insurance (PMI) provides borrowers with extra insurance when their loan exceeds 80% of the property’s value. A PMI protects a lender from loss if the borrower defaults on a loan and it allows the borrower to purchase a home without having a large down payment.