FAQs

How do I start the application process?

There are two easy ways to get started with Open Mortgage:
1. Locate the office closest to you and speak to a Loan Originator.
2. Send us a message and someone will contact you to discuss your options.

Why should I consider a refinance?

People choose to refinance their homes for many reasons. If you are interested in lowering your interest rate, reducing your monthly mortgage payment or cashing out on your home equity, refinancing might be a good option for you. Finance charges may be higher over the life of the loan.

What documents will I need to have ready?

In most cases, documents that verify employment, income and assets will be required. These can include:

  • Social Security Number

  • Last two months of paystubs

  • Past two years of W-2 forms

  • Two to three months of bank statements

  • One to two years of federal tax returns

  • Any information regarding current debt (student loans, car loans, credit cards, etc.)

What is an FHA loan

An FHA loan* is a mortgage loan that is insured by the Federal Housing Administration (FHA). FHA loans are popular with first-time homebuyers because the requirements are less strict than conventional loans.
*Open Mortgage, LLC and it’s DBA is not acting on behalf of or at the direction of the federal government.

In what states are you licensed?

Open Mortgage is currently licensed in 48 states and the District of Columbia. Visit our Licensing page for a complete list.

What is the difference between a Mortgage Broker and a Mortgage Banker?

Open Mortgage has been a Mortgage Banker for over fifteen years. When you work with a Mortgage Banker, you interact with the same people from the same company throughout the entire process – from application to close – ensuring special attention to detail. A Mortgage Banker approves the loan and can generally offer lower rates/costs and a quicker process. That is not always the case with a Mortgage Broker. A Mortgage Broker is a middleman that brings you to the lender who approves the loan, which could result in a higher cost for you.

What is the difference between interest rate and APR?

Your interest rate is the monthly cost you pay on the unpaid balance of your home loan. An Annual Percentage Rate (APR) includes both your interest rate and any additional cost or prepaid financial charges such as the origination fee, points, private mortgage insurance, underwriting and processing fees. (Actual fees may or may not include these charges). While your interest rate is the rate at which you will make your monthly mortgage payments, the APR is a universal measurement that can assist you in comparing the cost of mortgage loans offered by different Mortgage Bankers (Lenders).

How is my information used to come up with loan options?

When using our mortgage calculators, we try to customize the loan to what you are looking for – a new home, a lower rate, cash from your home, etc.

How important is the Loan-To-Value (LTV) ratio in refinancing?

The loan-to-value ratio [LTV] shows how much equity you have in your home. Equity is the difference between how much your home is worth and how much you owe on it. For instance, if your home is worth $150,000 and you owe $100,000 on your mortgage, then you have $50,000 worth of equity in your home. To calculate your LTV, divide your current loan amount by your home’s value. In this example above, your LTV would be 67%. In the mortgage world, higher loan-to-value (or lower equity) means there is a greater risk the borrower may default on the loan. Therefore, in refinancing your home, LTV is important in determining qualification for home loans and rates. Generally speaking, the lower your LTV, the lower your rate.

Are the pre-qualification services free?

There is no charge for getting pre-qualified. You are not under any obligation to use our site to apply for a loan, even if you use our mortgage calculators.

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