Mortgage
FAQs |
Company FAQs
What is a mortgage?
What is a fixed-rate mortgage?
What is an Adjustable Rate Mortgage (ARM)?
What is a
Balloon Mortgage?
What Loan
Programs do you offer?
Which
Loan Program is right for me?
How
much of a down payment do I need?
What is
a "no income verifier" loan?
What is credit
scoring?
Company FAQs
Where do we operate?
Who owns the
company?
What do we believe
in?
Where are we
headquartered?
How do I get in contact with Royal Pacific Mortgage?
What is a
mortgage?
A mortgage is a loan that is secured by real
property. The loan amount pays off the seller (in a purchase
transaction) or pays off existing loans (in a refinance
transaction). You then pay off the new loan in monthly payments
according to your payment schedule.
What
is a fixed-rate mortgage?
With a fixed rate mortgage, the
interest rate (and therefore your payments) remains the same over
the life of the loan. Interest rate changes do not affect your
payment, and it is easy to budget your finances.
What is an Adjustable Rate Mortgage (ARM)?
With an
adjustable rate mortgage (ARM), the interest rate on the mortgage
fluctuates over time. The frequency of the changes in the rate (and
therefore your payment) is determined by the type of ARM selected.
Payments can rise and fall with changes in the interest rate
schedule on this type of mortgage. If the ARM interest rate is lower
at the time of closing of the loan, you will typically start out
with lower payments. Also, if interest rates go down when it is time
for an interest rate adjustment on your loan, your payment generally
will also drop at these prescribed times.
What is
a Balloon Mortgage?
With a balloon mortgage, your
payments remain constant for a prescribed period of time. At the end
of this period of time (typically 5 or 7 years), you pay off the
loan or apply for a refinance. These may be a choice to consider if
you intend to be in the home for a short period of time.
What Loan Programs do you offer?
We offer an abundance of
programs and loan options for your consideration, which are
presented in our Loan Programs overview.
Which Loan Program is right for me?
There is no simple
answer to this! The "right" loan depends upon your needs, your
finances, your available down payment, your expectation of financial
changes, your comfort with different house payment amounts, and
especially how long you intend to keep your home and its mortgage.
You may look at our page describing the
advantages and disadvantages of each type of loan.
However, the best answer to this question will come from one of our Loan
Officers after careful discussion of the various factors in this
paragraph.
How much of a down payment do I need?
Down payments can
range from zero to rather substantial amounts. VA loans, for
example, may offer 100% financing. Other loans could be as low as 3%
down payment. And, at certain times, conventional loans may have
combinations that allow up to 100% financing or more. The number of
options is so varied that it is important to have a personal
discussion with one of our Loan Officers to discuss your needs and
learn more about your choices.
What is a "no income verifier" loan?
This is a loan that
is reviewed and underwritten without verification of your income.
This may also be called a "stated" income loan, since you state your
income and this amount is used without confirmation. Variations on
this type of loan are also available. Of course, accurate
information must be given even though it is not verified, and the
amount must be reasonable and consistent in relation to your overall
financial picture.
What is
credit scoring?
Credit scoring is a relatively recent
phenomenon that incorporates various credit factors in presenting
numerical scores for prospective borrowers. Based on massive
historical data analysis, the scores reflect past and current credit
usage, and the likelihood of similar credit usage patterns in the
future. Credit scoring is one of the factors considered in the loan
underwriting and approval process.
Where do we
operate?
Right now, we are located on Hawaii Island, but
we can offer mortgages throughout all the Hawaiian Islands and even on
the Mainland.
Who owns the
company?
Royal Pacific Mortgage is proudly owned by the experienced wife
and Husband team of Loretta & Steve Milner. Our
