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Home Loan FAQs

You and E-LOAN partners

Who should I contact once my loan is in process?

Contact the trusted service provider that you were referred to directly for information concerning loans in process. Detailed contact information for each provider can be found on their respective website.

Who do I contact for general information and questions on using E-LOAN's services?

If you have any questions, please call 1-888-533-5333.

Can I apply for an E-LOAN mortgage?

All home loans advertised on www.eloan.com are now provided by several preferred, nationally recognized lending partners. Click here to find a loan.

Home Purchase Loans

On a home purchase loan, will someone work directly with my Real Estate Agent?

Yes. Each loan is assigned to one trusted provider who will work with you and your agent until you close.

Home Loan Fees

Are there costs to applying for a home loan?

No. E-LOAN’s trusted providers do not require an up-front fee to submit an application and begin the loan process.

Do I have to have an impound account?

Impound accounts are required by lenders in most states, particularly when the amount you are borrowing represents a large percentage of the property's market value. When an impound account is required by the lender, you can often waive the use of an impound account for the hazard/homeowner's insurance and property taxes for a fee. However, you will always have to prepay your mortgage insurance payments (if any) into an impound account. In most states, once you submit a loan application we can help you determine if you will need an impound account. You will need a mortgage insurance impound account if your loan-to-value ratio (loan amount divided by property value) is greater than or equal to 80%.

Home Finance

Should I choose a fixed rate or adjustable rate loan?

This can depend upon several different factors. Fixed rate loans have a stated interest rate that does not change over the life of the loan, whereas the rates on adjustable rate loans are linked to an index and change as the index rate changes. Many mortgages, such as a 5-Year Fixed (30 Year), start as a fixed rate loan and then convert to an adjustable rate. Adjustable rate loans have more risk due to the possibility that the interest rate could increase. However, because you are assuming some of the risk the lender will generally reward you with a lower interest rate. These loans are best for borrowers who do not plan on keeping the loan for the full term.

When does it make sense to pay points?

Points are a one-time fee that a borrower pays to lower the interest rate. Points are defined as a percentage of your loan amount, with one point being equal to one percent of your loan. For example, if you borrow $200,000, one point would be equal to $2,000. Paying one point will generally reduce your interest rate by approximately .25%. An alternative to paying points is to receive a "credit" from the lender in exchange for a higher interest rate. Whereas points are added to your closing costs, a credit is used to reduce your closing costs. Once again, you can receive a credit of approximately one point by raising your interest rate .25%. Whether you choose to pay points or receive a credit, this amount will be applied to your closing costs when your loan funds.

Should I consider an Interest-Only loan?

Interest-Only loans are a good means of either increasing your home purchasing power or maximizing your flexibility to control cash flow. You can save significant amounts of cash for investment, savings, or other expenditures during the first ten years of your loan. This is also a solid strategy to maximize tax deductibility, with more funds available for paying down higher cost, nondeductible consumer debt. With these loans, the minimum payment required covers interest only — you decide how much or how little of the principal to repay each month. These loans should not be confused with negative amortization loans. With Interest-Only, the principal balance NEVER increases.

Should I choose a loan with negative amortization?

We generally recommend that people stay away from these types of loans due to the high risk. Most adjustable rate mortgages (ARM) adjust the payment when the interest rate changes. However, negative amortization ARMs have a fixed payment option, even when the interest rate increases. So it’s possible that the total loan balance may actually grow over time.

When can I lock my interest rate?

Your loan consultant will review your application and credit information in order to determine whether you can request a rate lock. Once they determine that you are eligible, your loan consultant will contact you so that you can lock at your convenience. Please note that you must specify a property address in order to lock.

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.

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. It is added to your closing costs. After this one-time prepayment, your interest will be included in your regular monthly payments.

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

Yes. E-LOAN offers loan products with as little as zero percent down. For more information, contact a Customer Service Representative at 1-888-533-5333 for specific product requirements.

Can I apply for a purchase loan before I find a property?

Of course. A pre-approval specialist will review your financial situation to determine if you are likely to qualify based on the estimated loan amount and purchase price information that you provide on your application. A pre-approval gives you greater flexibility and leverage while you conduct your home search. Remember to specify a property address if you’re looking to lock your rate.

Privacy and Security

What is the E-LOAN Privacy Policy?

You can access the Privacy Policy here.

How does E-LOAN Protect my personal information?

You can learn more about how E-LOAN protects your personal information here.

Terminology

What is hazard insurance?

Hazard insurance protects homeowners against property damage and is required by lenders before you buy or refinance a home. Hazard insurance shields you against property damages caused by a fire or a severe storm and should cover the cost of rebuilding your home. Generally, you have to confirm at closing that you've secured one year of hazard insurance coverage.

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. This amount is added to your closing costs. After this one-time prepayment, your interest will be included in your regular monthly payments.

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.
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All deposit products offered through E-LOAN, Inc. (E-LOAN) will be opened through Banco Popular North America (BPNA), a New York state chartered bank insured by the FDIC that is the direct parent company of E-LOAN (i.e. E-LOAN is a wholly-owned subsidiary of BPNA). Processing services are provided by BPNA. All deposits with BPNA are insured for the maximum amount allowed by law, and all balances on deposit with BPNA (whether directly or through E-LOAN) would be combined for purposes of determining FDIC coverage eligibility. Beginning January 1, 2013, all of a depositor's accounts at an insured depository institution, including all noninterest-bearing transaction accounts, will be insured by the FDIC up to the standard maximum deposit insurance amount ($250,000), for each deposit insurance ownership category. For more information about FDIC insurance coverage of noninterest-bearing transaction accounts, visit ww.fdic.gov/deposit/deposits/unlimited/expiration.html.