1. I don't have much money for down payment. Can I still get a loan?

Yes, Finite Mortgage Inc. offers loan products with as little as zero % down (up to 107% of property value is available in certain cases). For more information, contact one of our experienced loan officers at 214-217-4730 for specific product requirements

2. What are the application fees to get a loan?

Finite Mortgage does not charge any application fees, but generally, an appraisal will be required to determine the market value of the property. Appraisers charge from $225-$375, and can collect payment at the time of the appraisal, or at closing.

3. What determines my interest rate?

Residential interest rates are tied most closely to the 10 year U.S. Treasury Bond prices. When bond price rises, the corresponding rate of return on those bonds fall, which improves the rate for a borrower. We set our rates according to the prices of the 10 year U.S. Treasury bond. Rates vary among borrowers on the based on an assessment of risk of borrower default.

For instance, someone that has a low credit score, and is purchasing an investment property with 0% down is considered to be at more risk of default than someone with good credit, purchasing a home they plan to live in, and putting 10% down.

4. What is an A.R.M.?

This is an Adjustable Rate Mortgage. These loans allow for the interest rate to adjust after the fixed term expires. The interest rate on adjustable-rate loans can go up or down depending on changes to the index interest rate on which the loan's interest rate is based. Some adjustable-rate loans allow for a fixed period, such as one, three or five years, before the interest rate becomes adjustable. After that fixed period, the interest rate can change depending on how the index is during that year.

5. What is a Balloon loan?

Balloon programs are ideal for borrowers who know they will not occupy the home for long periods of time. For example, the borrower may plan to move in 3 to 7 years and sell the home. Since balloon loans usually have shorter terms (usually five to seven years) than a typical fifteen or thirty-year loan, the interest rate is often less than that on a fifteen or thirty-year conventional loan. A balloon mortgage usually offers many of the features of a fixed-rate loan, such as converting the loan to a longer term in the event of unforeseen changes in the future.

6. What is a Conventional Loan?

A conventional loan usually refers to an "A" credit loan approval with very little negative situations on a credit report.

7. What is an Interest Only loan?

An interest only loan refers to a type of loan payment. On an interest only loan you pay only the interest for a set period of time. This time is can be from 2 to 10 years. The loan still amortizes at the same rate and time. Usually an interest only loan comes with a slightly higher interest rate to reflect the higher risk to the lender. An interest only payment can be attached to any type of loan.

8. How do I know what loan is right for me?

Here are a few items you need to consider before selecting a program: 1. How long do you plan to own the home? 2. What is your financial outlook for the near-term and long-term? 3. Do you have future financial obligations (such as college, retirement, elderly care) that might limit your future ability to meet debt obligations? 4. How comfortable are you with a payment amount that changes over time? 5. Will you consider a balloon payment? 6. What is your liquid asset position? Are you willing to make a larger down payment? 7. Are you self-employed? 8. How is your credit history? 9. Are you a first-time homebuyer? 10. Will you have adequate funds available after debt payments for retirement funding and other needs?

9. Are A.R.M.s (adjustable rate mortgages) risky for a borrower?

Adjustable rate mortgages are loans that are fixed for a period of time, and then begin to adjust according to an index. A common index is LIBOR, or London Interbank Offertory Rate. This is the rate that International Banks loan money to each other.

The risk of an ARM is that once it begins to adjust, and interest rates climb, it may make the monthly payment uncomfortable for the borrower. However, there are caps on the amount a rate can increase after its first adjustment.

For example, let’s say your loan has a 6% cap above initial rate, and the initial rate is 5%. If prevailing interest rates shot up to 15%, the principal and interest on a $100,000 loan would go from $536 to $952/ month.

To protect against interest rate risk, a borrower can lock the rate for a period of time that would extend past the time the borrower expects to be in the property.

10. How long does it take to get the loan process started?

We will briefly discuss your situation with you, evaluate your situation and provide you with some financing options. Once we have agreed on a program, monthly payment, and cash you need to bring to close, we will take a loan application from you. This entire process will take about 20-45 minutes.

To get a jump on things, you can complete the loan application on this site by clicking here. Someone will get in touch with you within hours to complete your application and get an approval for you.

11. How quickly will my loan be approved?

Once you submit your application your loan will immediately begin the underwriting process. It is possible for an instant approval but in most cases Finite Mortgage Inc. will deliver your credit decision within 24 hours.

12. What percentage of my home's appraised value can I borrow?

The amount that you can borrow varies based on a variety of factors. However, most borrowers can borrow at least 80% of their home's value (when all mortgages are totaled) and some can borrow up to 100%.

13. How long does the entire loan process take?

You can expect the loan to take 21 days from the day we take the application until you close on your new loan. If we are able to get your documentation quickly, and don’t experience problems in underwriting, we can complete your loan in as little as 5 days.

14. How quickly can I close my loan?

The time needed to close your loan depends on a variety of factors, including the time needed to obtain required documentation and when you can sign your loan documents. Many loans close within 10 days of application and most loans close within 7 days of receiving a final loan approval. In most cases it will take four to six weeks to close your loan.

15. What sort of documentation do you need to complete a loan?

Generally, we will need documents to support the amount of income a borrower says he/she makes. For instance, we would request the last two check stubs from the pay checks for an employed borrower.

For a self-employed borrower, we would request the last two years of income tax returns.

Many times, if a borrower’s credit score is average or above, we don’t have to verify income. We can simply use the amount the borrower “states” that he/she makes.

In addition to documents that support income, we may need documentation that shows where your down payment will come from, such as bank statements.

We will also need you to sign the loan application, and disclosures required by State and Federal law.

16. What is the difference between the interest rate and the APR?

The interest rate is the cost to borrow the lender's money. The APR represents the total cost of the mortgage over the life of the loan, including closing costs and lender points.

17. What is pre-paid interest?

This amount represents the interest that accrues between the day your loan closes and the last day of that month, and is added to your closing costs. After this one-time prepayment your interest will be included in your regular monthly payments.

18. What is the rescission period?

The rescission period is a waiting period of three days (excluding Sundays and legal holidays), between signing your loan papers and closing your loan. This period allows you to reconsider, and perhaps void the transaction, and is required by federal law for all owner-occupied refinances.