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Frequently Asked Questions
1. Why is my APR different from the interest rate the Loan Officer quoted?
The APR (annual percentage rate) reflects the cost of your mortgage loan as a yearly rate. It also includes interest as well as origination fees, loan discount points, mortgage insurance, and pre-paid interest. The interest rate is the actual note rate.
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2. What does No Closing Costs mean?
If you close your loan under a “No Closing Cost” loan program, there will be no charge for the customary closing costs for a mortgage loan. This means that the bank pays the fees, including Title Insurance, Appraisal, Credit Report, Escrow, Notary and Recording Fees. Refer to Fremont Bank’s Application Fee Agreement which lists the fees you will not pay.
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3. If this is a ‘true’ no closing cost loan, why are there charges listed?
When you apply for a mortgage you will receive a "Good Faith Estimate". This is a written estimate and may list more than 20 different kinds of fees that are the costs associated with purchasing a property or refinancing one. On a No Closing Cost loan, "POCL" is listed next to the fee amount which means the fee is ‘Paid Outside Closing by Lender’. Closing costs do not include items such as any prepayment penalty on an existing loan, insurance premiums, or property taxes.
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4. What does it mean, “If you pay off your loan early, you will NOT be entitled to a refund of the part of the finance charge"?
As you make your monthly principal and interest payments, the interest collected is for the previous month; you are not entitled to a refund on interest collected in arrears.
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5. I do NOT want impounds, so why are they listed as part of my payment?
Lenders are required to disclose the proposed housing expenses; this may include: Principal and Interest payment, Taxes, Hazard and/or flood insurance. Generally, an impound account will not be required as a condition of your loan unless your Loan to Value ratio on your first mortgage is 90% or more.
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6. Since I have a loan application in process, do I need to make the payment on my existing mortgage?
Yes, you are still responsible for your monthly payments until your new loan has funded and your existing loan is paid off.
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7. After signing my closing loan documents, how long does it take for my loan to fund?
Loans generally fund 5-7 business days after signing your loan documents. Once your signed documents are received, the Deed of Trust is sent to the County Recorder Office. Your loan is then funded upon receiving confirmation of recording.
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8. After my loan has funded and closed, how do I get my application and/or rate lock fees back?
If you applied for a No Closing Cost Loan, your application and rate lock fees are shown as line item credits on your Settlement Statement (HUD-1).
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9. How do I check my application status?
To inquire about the status of your loan application, please call us at (800) 359-BANK (2265) or (510) 795-5795, Monday – Friday, 8:00 A.M. to 7:00 P.M. Pacific Time, and Saturday 9:00 A.M. to 2:00 P.M. Pacific Time.
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10. I want to refinance, but I have a Fremont Bank Home Equity Line Of Credit (“HELOC”), and would like to keep it open. Can I do that?
Yes, as long as your new loan qualifies and subordination is available for your HELOC. There may be a pricing adjustment to your HELOC if it was originated prior to January 1, 2009 as a condition for the subordination. Ask your Fremont Bank Loan Officer for subordination details.
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11. How do I request a copy of my appraisal?
You have up to 90 days after we notify you about the action taken on your application to submit a written request for a copy of the appraisal. Please include your name, loan number, property address. Sign and date your request and mail to: Fremont Bank, Attn: Appraisal Department; PO Box 5101, Fremont, Ca. 94537-5101.
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12. Does Fremont Bank offer FHA loan programs?
Yes, this is part of our ongoing effort to offer a broad range of products. Please call 866-617-7292.
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13. Who do I contact for a pre-approval for a home purchase?
Please call (866) 229-5084 and select option #4.
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