Frequently Asked Mortgage Questions
Do you have questions? We can help! You will find the answers to several frequently asked mortgage questions below.
FEATURES AND BENEFITS
How can I benefit by using CameoMortgage.Net by Cameo Mortgage Group, LLC ('CMG')?
Our site is for anyone who knows what type of loan they want and who is looking for a low cost loan with fast and easy approval. Check out the rates on the other web sites, and then come to us for a low cost efficient loan on the web! It's fast, it's easy, and it's totally online.
THE PROCESS
How much must I have for a down payment?
0% - Some restriction apply.
What happens after I apply to CMG at CameoMortgage.Net?
You will receive an e-mail within 24 hours of the submission of your application. This e-mail will indicate the status of your application and the steps you need to take.
CMG will send you application disclosure documents via USPS mail within 3 business days of your completed loan application submission.
What happens after I receive a loan approval?
You will be instructed by CMG to complete the following steps:
- Pay a Good Faith Deposit of $300 (if applicable)
- Provide additional processing information.
- Lock your interest rate.
- Schedule your closing.
When can I lock in an interest rate for my mortgage?
You can lock in your interest rate after:
- You have been approved.
- You have paid your Good Faith Deposit (if applicable).
- You have provided CMG with the required additional processing information.
What if I need help after regular business hours?
Our sales office hours are Monday - Friday 9 A.M. - 8 P.M., Saturday 9 A.M. - 2 P.M. EST. If you need help after regular business hours, please send us an e-mail at Info@CameoMortgage.Net. You will be contacted by a CMG representative the next business day.
HOME EQUITY LOAN / LINE OF CREDIT
Why might a Home Equity Loan or Line of Credit be right for me?
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You can use a Home Equity Loan or Line of Credit to consolidate your debt. If you have credit cards and other high-interest debt, you may be able to reduce your monthly payments with a home equity loan or line of credit. |
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You can make home improvements. Adding an extra bedroom, updating your kitchen or replacing an old roof are all smart ways to increase your home's value and protect your investment. |
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You can use the funds for a variety of other uses, such as college tuition, vacation expenses, or large purchases such as furniture, appliances, or even a car. |
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You may save at tax time.* The interest on your Home Equity Loan or Line of Credit may be tax deductible* which can save you money year after year. |
*Consult your tax advisor concerning the deductibility of interest.
What's the difference between a Home Equity Loan and a Home Equity Line of Credit?
Generally, a Home Equity Loan is for a fixed dollar amount, for a fixed period of time, with fixed monthly payments, and the amount you borrow is paid to you as a single lump sum.
With a Home Equity Line of Credit, you can draw the amount of money you need from the available total when you need it. Payments are required only when there is an outstanding balance, and you pay interest only on the outstanding balance. Further, with Cameo Mortgage Group LLC, if you do have an outstanding balance, you have the option to make your monthly payment on the interest alone (and not against the principal). Because a HELOC provides a revolving line of credit you can borrow, repay, and borrow again.
How much can I borrow?
Several factors determine how much you can borrow including the available equity in your home, your income, prior credit history and ICG's loan limits. The minimum amount that we lend for a Home Equity Loan or Line of Credit is $5,000 and the maximum is $500,000.
Is the interest on my Home Equity Loan or Line of Credit tax-deductible?
In many cases, the interest on a Home Equity Line of Credit or Home Equity Loan may be tax deductible. Consult a tax professional concerning the deductibility of interest.
Is the interest rate fixed or variable?
Home Equity Loans may offer a fixed interest rate and the principal is amortized over the term, while Home Equity Lines of Credit feature a variable rate. Interest rates are based on the amount you borrow and the term of the loan.
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What is the difference between pre-approval and pre-qualification?
The pre-approval process is much more complete than pre-qualification. For pre-qualification, the loan officer asks you a few questions and provides you with a pre-qual letter. Pre-approval includes all the steps of a full approval, except for the appraisal and title search. Pre-approval can put you in a better negotiating position, much like a cash buyer.
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When does it make sense to refinance?
Usually people refinance to save money, either by obtaining a lower interest rate or by reducing the term of the loan. Refinancing is also a way to convert an adjustable loan to a fixed loan or to consolidate debts. The decision to refinance can be difficult, since there are several reasons to refinance. However, if you are looking to save money, try this calculation:
Calculate the total cost of the refinance
Calculate the monthly savings
Divide the total cost of the refinance (#1) by the monthly savings (#2). This is the "break even" time. If you own the house longer than this, you will save money by refinancing.
Since refinancing is a complex topic, consult a mortgage professional.
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What is a rate lock?
A rate lock is a contractual agreement between the lender and buyer. There are four components to a rate lock: loan program, interest rate, points, and the length of the lock.
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What is a full documented loan?
Both income and assets are disclosed and verified, and income is used in determining the applicant's ability to repay the mortgage. Formal verification requires the borrower's employer to verify employment and the borrower's bank to verify deposits. Alternative documentation, designed to save time, accepts copies of the borrower's original bank statements, W-2s and paycheck stubs.
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What are the other types of loans?
Stated income/verified assets: Income is disclosed and the source of the income is verified, but the amount is not verified. Assets are verified, and must meet an adequacy standard such as, for example, 6 months of stated income and 2 months of expected monthly housing expense.
Stated income/stated assets: Both income and assets are disclosed but not verified. However, the source of the borrower's income is verified.
No ratio: Income is disclosed and verified but not used in qualifying the borrower. The standard rule that the borrower's housing expense cannot exceed some specified percent of income, is ignored. Assets are disclosed and verified.
No income: Income is not disclosed, but assets are disclosed and verified, and must meet an adequacy standard.
Stated Assets or No asset verification: Assets are disclosed but not verified, income is disclosed, verified and used to qualify the applicant.
No asset: Assets are not disclosed, but income is disclosed, verified and used to qualify the applicant.
No income/no assets: Neither income nor assets are disclosed.
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What is a good faith estimate?
It is the list of settlement charges that the lender is obliged to provide the borrower within three business days of receiving the loan application.
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What is a conforming loan?
A loan eligible for purchase by the two major Federal agencies that buy mortgages, Fannie Mae and Freddie Mac.
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What is a jumbo mortgage?
A mortgage larger than the maximum eligible for conforming purchase by the two Federal agencies, Fannie Mae and Freddie Mac.
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What is a pre-qualification?
This is the process of determining whether a customer has enough cash and sufficient income to meet the qualification requirements set by the lender on a requested loan. A pre-qualification is subject to verification of the information provided by the applicant. A pre-qualification is short of approval because it does not take account of the credit history of the borrower.
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Be sure to visit our Mortgage Glossary
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