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A.) The Prime rate is not tied to the long term rates, however the long term rates may move little towards what the prime rate does. Prime rate effects the rates banks charge for home equity loans, credit cards, and car loans. 2.) What are points and should I pay points to buy down my interest rate on my home loan? A.) Points are what lenders charge for processing and working up of your loan. One point is 1% of the loan amount borrowed. Example: 1% of $100,000 loan amount is equal to a $1,000 in fees. If you plan on staying in your home for a long period of time it may be beneficial to pay additional points to buy down your interest rate. Your loan officer can help you determine if this makes sense to pay additional points to buy down you interest rate. Typically lenders charge 1 point to originate your loan and the fees can change from loan to loan based on the product and how much work is involved in doing your loan. 3.) How long does the loan process take from start to the closing table? A.) We want to close your loan process in as little time as possible. The process usually takes around 30 days. Some loans may take up to 60 days depending on how difficult they may be. |
Toll Free Number 877-81-RATES • 866-80-RATES (72837) • Fax 218-666-2004 |
| John & Jeff Chaulklin - President & Vice-President Great Northern Lending Corp. |
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