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What Clients Ask The Most

What Is the Difference Between Interest Rate and Annual Percentage Rate?

Like an interest rate, the APR is expressed as a percentage. However, APR includes other charges and fees such as mortgage insurance, most closing costs, discount points and loan origination fees.

How Much of a Down Payment Is Required?

The common answer is 20% but that's not always the case. The minimum requirement for a conventional loan is 5% and only 3.5% for an FHA loan.

What Are Discount Points and Origination Fees?

Origination points are fees paid for the evaluation, processing, and approval of mortgage loans. The more discount points paid, the lower the interest rate on the mortgage. One point is typically equal to 1% of the mortgage amount.

What are closing costs, and how much should I expect them to be?

Closing costs are expenses you pay when you close on your house, beyond the down payment. These costs can run 3-5% of the loan amount and may include appraisals, inspections, title insurance, taxes, and more. During the pre-qualification process, EPiC Mortgage will provide for with an estimated cost sheet.

What credit score do I need to get approved?

For most loan types, buyers need at least 620 for qualify. But higher is better, and borrowers with scores of 740+ will get the lowest interest rates.

What is mortgage insurance?

Borrowers making a down payment of less than 20% will need to pay for mortgage insurance. Mortgage insurance lowers the risk to the lender of making a loan to you, so you can qualify for a loan that you might not otherwise be able to get.

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