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Here are a few of the most common questions asked of us daily. Detailed explanations and discussions follow each query.
If you need additional help on a question, a related answer will be enclosed in brackets at the end of that question. If there's a mortgage question you'd like to have answered here on the website, please send an email to questions@coasttocoastmortgage.biz. If you wish, you may enclose a daytime or evening phone number for someone from our organization to contact you directly. Q. What is today's rate? Q. Should I get a fixed or an adjustable rate? Q. Why use a mortgage broker? Aren't they just middlemen? Q. I'm wary of market conditions - when can I lock in a rate? Q. My rate isn't dropping by 2%. Why should I refinance? NEW!  
Q. What is today's rate? A. This is one of the most common questions that we receive. We can provide an idea of rate ranges in the market place today. However, pinpointing an exact rate is something that cannot be done instantenously and warrants a closer review. There are several reasons for this. The first reason is time. To keep up with the agility of the general markets, banks are moving towards something known as live pricing [?], whereby the rate is constantly changing. Now, instead of being updated every day at 10:00am or noon, they are updated every few minutes. This makes the process of shopping around especially difficult because now you're shopping across time, and you're comparing between Bank A's rate at 10:30am and Bank B's rate at 2:30pm in the afternoon. So unless you are working with a mortgage company that offers multiple rate locks, you are either at the constant mercy of the market or only have once chance to lock in a rate, which might not be optimal. [What is a Multiple Rate Lock?] The second reason has to do with structuring. Not every loan is structured the same way. Before being able to research the best loan program for anyone, we have to know at least the basics:
Having that covered, we're in a better position to begin the process. Ultimately, what should stick with you is the fact that a rate quoted to you is only as strong as the information that you've given out. The less you divulge, the less accurate your "quote" is likely to be. [How do I get a personalized review of my options?] The third reason has to do with your qualifications. With the size of today's financial market, no one bank has the right program for everyone; unfortunately, some banks have rather strict qualifications that not everyone can pass. Depending on what situation you may be in, rates that some banks may offer you will vary widely; some banks may outright refuse your offer. However, for someone that is not working within the mortgage industry on a day-to-day basis, it might be near impossible to be able to check with more than just two or three lenders to the point where they can tailor something to what you want and/or qualify for. [How can I find out what I qualify for?] Q. Should I get a fixed or an adjustable rate? A. While many people initially assume that an adjustable rate is not for them, it often pays to really analyze your specific financial situation to find out exactly what's best. Some things to consider are monthly savings and the likelihood of either moving or refinancing in a few years. According to the U.S. Census, only half of homeowners in the United States stay in their home for more than 8.2 years. Consider this example: A family considers a new $175,000 mortgage on their home, and debates a fixed mortgage or an adjustable rate mortgage (also known as ARM). Rates show as they were the morning of October 4th, 2002.
The difference in payments over the first five-year period is $4940.40. That's hard to argue against if you know you'll be moving (or refinancing) in a few years again. Q. Why use a mortgage broker? Aren't they just middlemen? A. Our clients are very concerned with being able to get the best possible mortgage for their specific situation. Below are some of the most immediate ways that a broker can leverage the power of the residential lending market. Work with a variety of lenders Coast to Coast Mortgage has ties with over 120 lenders across the country. These lenders range from the largest and most established banks to the newest most creative financial houses. It is our job to make your financial goals fit with a reputable lender that will offer the best terms (lowest rate & payments) for you. Multiple rate locks As financial markets combine with the information age, mortgage lenders begin to adjust their rates more than once a day. Most lenders are now on, or moving towards, live pricing [?]. Your mortgage application may qualify you for our Multiple Rate Lock (MRL) system, in which you may have as many as three chances to lock your rate again after it changes. This brings you the ease of mind of knowing not only that will you have the best rate among a variety of lenders, but also acquire the best rate at the right time. Service Coast to Coast Mortgage prides itself on its service. Instead of dealing with a bank that's only open during inconvenient hours or dealing with a lender halfway across the United States, you have someone who is both local and accessible. Throughout the process, you deal with a single person, from application all the way past settlement. The hassle of dealing with automated phone systems, faxing the same document to five different departments, limited hours, extra documentation, and a dozen other small pesky problems are gone. We will even schedule appraisals and settlements to fit your schedule. A number of clients have been able to go through the process and have everything happen in their own home. Q. I'm wary of market conditions - when can I lock in a rate? A. Simply put, as soon as we get your phone call. While different banks go under different guidelines and processes for approval and registration, there are generally a few that will let us do an Instant Rate Lock. As always, the Multiple Rate Lock (MRL) system still applies, so you're not only guaranteed the best rate right out of the gate, but over the next few weeks as you're finishing up the mortgage process. Q. My rate isn't dropping 2%. Why should I refinance? A. Looking at any new mortgage only by the interest rate is like shopping for a car and determining it based on price without considering the kind of car that it is. It might mean that you've gotten the cheapest price, but it doesn't mean you got something that can actually help you. For example, a new 10-year loan has very low interest rates. But what good is a low rate when your payments double and you can't afford that? There are a number of things to consider when looking at a new mortgage: interest rate, term, fixed or adjustable rate, carrybacks and/or piggybacks, full payment or interest-only, low or full documentation, effect on cash flow, property types, removal of PMI, regular or negative amortization, discounts from prepayment penalties, availability of escrow removal, closing costs, assumability, APR, and, of course, the service and ease by which you can receive the right mortgage for you. If the choices above look confusing, that is only because these options offer a glimpse into the vast diversity offered within the mortgage industry. In some cases, people can often save thousands of dollars even if the rate is higher! The 2% might be a good benchmark in a simplified world, but the less simple your goals are, the more difficult it is to see through the muddle without expert advice. [In my situation, can I meet my goals without a 2% drop?] |
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Free seminar about Real Estate Investing | 3/18/2007 |
| On Wednesday, March 28, from 6:00-7:30 pm, Coast to Coast President Bill Dolan will be holding his free Real Estate Investor Seminar. This seminar is perfect for anyone who wants to enter real estate investing and for any current investors who want to maximize their returns. Click here for complete information. | ||
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PBS & WHYY Host Bill Dolan | 7/5/2006 |
| William Dolan, President of Coast to Coast Mortgage is once again scheduled to be the featured guest speaker on Wednesday July 5th on the WHYY "Delaware Tonight News", which is broadcast weekdays on PBS Channel 12 TV from 5:30 to 6:00 PM. | ||
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Bill Dolan on WILM | 5/24/2006 |
| William Dolan, President of Coast to Coast Mortgage will be featured Wednesday May 25th on the WILM "Business and Politics in Delaware" program which is broadcast weekdays on AM 1450 from 3:00 to 4:00 PM. e. | ||
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Delaware's first Certified Mortgage Planning Specialists | 5/23/2006 |
| On May 23rd, William Dolan and Oliver Delgado of Coast to Coast Mortgage became Delaware's first Certified Mortgage Planning Specialists as accredited by the CMPS Institute. The Institute describes a CMPS as "a recognized expert in the area of mortgage planning, cash flow management and real estate equity management." Mr. Dolan and Mr. Delgado both received their certification after scoring in the top 2% of prospective members. | ||
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