Q. What should I consider when deciding whether to rent or buy a home?
A. This is a decision based on both financial and lifestyle choices. From a lifestyle standpoint, you should consider whether or not you want to commit to living in a home for several years. To determine if it makes financial sense to buy, you should compare the cost of renting to the after-tax cost of owning
Q. How can I determine how much I can afford to pay for a house?
A. No one wants to find the home of their dreams, only to discover that they can't afford the mortgage payments. You can use the How Much Can I Afford? calculator to get a quick estimate of how much you can spend for a house. Using your estimated down payment and monthly mortgage payment.
Q. How much are SmartLending.com's fees for obtaining a home loan?
A. Well, it depends upon many factors, including which state you live in, what county you live in, and even what loan program you have selected. However, a good rule of thumb is that the national average for closing costs is about 3 - 6% of the home's sale price (not including down payment).
General Information
Q. Is my personal financial information safe when I use the calculators, complete the application, and submit it online?
A. Yes, and we understand your concerns. We use industry-leading security technology, which means all of your personal information is secure throughout the entire application process. For more information, please refer to our Security Policy. Furthermore, our Privacy Policy is of the highest standards. We do not collect information you enter into the calculators, and no one but you will see the information you've entered into the loan application until you click Submit.
Q. I am a SmartLending.com customer; can I check my loan information online?
A. Yes, from the home page, www.smartlending.com, on the right side of the page, there is a box, "Current Customer Log In." Click the "Log In" button. You will need your loan number, social security, and property's ZIP code to enter your loan information. From this secure area, you can view your account information and maintain your personal information.
Loan Program Questions
Q. What is the difference between a fixed rate and adjustable rate mortgage?
A. Fixed rate mortgages feature an unchanging interest rate, which is determined when you are approved for a mortgage and remains the same for the term of the loan. With adjustable-rate mortgages (ARMs) the interest rate may vary over the course of the loan. Typically, the interest rate is lower the first year, then increases at predetermined intervals. This means your payments increase as well.
Q. Why do interest rates fluctuate?
A. Basically, interest rates are tied to inflation and the reaction of the financial markets. An increase in inflation causes interest rates to rise because lenders pool loans into securities and then sell them in the secondary market, competing with the entire pool of worldwide investment opportunities. Inflation causes the value of fixed-rate securities to go down, so mortgage rates go up. For more information about interest rate trends, please see our Check Current Interest Rate information.
Q. What are points?
A. A point is 1% of the loan amount. For example, for 2 points on a $300,000 house, you will pay 2% of $300,000, or $6,000. The number of points charged for a mortgage depends on the circumstances. Sometimes it is advantageous to pay higher points and get a lower interest rate, as you'll end up paying less over the life of your loan. You will pay for the points at the time of closing and can deduct the point amount as interest on your income tax return. (Consult a tax professional.)
