1. What is the difference between the interest rate and the annual percentage rate?

2. What are points?

3. What fees are included in the closing cost?

4. What factors affect mortgage payments?

5. What is a FICO score?

What is the difference between the interest rate and the annual percentage rate?

The annual percentage rate, also know as APR, is an interest rate commonly used to compare loan programs from different lenders and does not affect your monthly payments.  Interest rate is the actual rate that you agree to pay for your loan and determines your monthly payments. 

What are points?

Points are an upfront fee paid by a borrower at closing to buy a lower rate on the mortgage.   Each point is equal to 1% of the loan amount.  For example, 1 point on a $100,000 loan would be $1,000.

What fees are included in the closing cost?

These are fees a borrower pays at closing.  They generally include:  application fees, underwriting and loan-origination fees, appraisal fees, credit reports, and mortgage point.  However; at Maico Mortgage loans, we pay for all your closing costs.

What factors affect mortgage payments?

The following factors affect your mortgage payments:

• Loan amount

• The interest rate

• Down payment

• Payment schedule

• Term of the loan

What is a FICO score?

A FICO score is a credit score used by lenders to evaluate the potential risk posed by lending money to consumers.  It is used to determine who qualifies for what type of loan at what interest rate.