What is a fixed-rate mortgage?
What is an adjustable-rate mortgage (ARM)?
Will I need property insurance at closing?
Should I get pre-approved prior to house hunting?
How long does the mortgage process take?
What is a balloon loan?
What is the APR and how is it calculated?


What is a fixed-rate mortgage?
A mortgage in which the interest rate does not change during the entire term of the loan.


What is an adjustable-rate mortgage (ARM)?
A mortgage in which the interest changes periodically, according to corresponding fluctuations
of an index. All ARMs are tied to indexes. Additionally you may hear the term 3/1 ARM or 5/1
ARM - these are hybrid programs that are fixed for three or five years, and are then adjusted
according to an index and margin every year thereafter for the life of the loan.


Will I need property insurance at closing?
Whether you are refinancing an existing loan or taking out a loan to purchase a new property, you will need one full year of homeowner's property insurance in place at the time of closing.
You will need to maintain this insurance for the life of the loan.


Should I get pre-approved prior to house hunting?
It is important to meet with a qualified mortgage professional to determine which loan makes
the most sense for your individual situation as well as how much of a monthly mortgage payment
you can afford. LTV Capital can quickly handle this for you and issue you a certified
Pre-Qualification letter that you can provide to your Realtor and forward along with any written purchase offers.


How long does the mortgage process take?
Processing and closing a residential mortgage usually takes between 7 and 30 days and Apartment or Commercial loans usually take between 15 and 60 days depending on the complexity of the transaction. An LTV Capital loan professional can give you a precise estimate based on your individual situation.


What is a balloon loan?
A balloon loan is usually a ten year loan calling for payments which are insufficient to fully amortize the amount of the loan before the maturity date. This creates a principal sum, known
as a balloon payment, which is due at maturity.


What is the APR and how is it calculated?
APR stands for annual percentage rate and its purpose is to give borrowers a truer representation of the effective interest rate on their loan. APR factors in certain closing costs
and fees and spreads these costs over the life of the loan, along with the note rate, to arrive
at a more accurate annualized percentage rate than the note rate alone represents.




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