Frequently Asked Questions

APR takes certain loan costs into consideration as financing costs and displays a rate that includes these costs. Your APR is shown on your Loan Estimate.

A credit score attempts to give insight into a borrower’s credit history with a single number and helps lenders analyze the borrower’s ability to take on additional debt, such as a mortgage. Below are a few factors that contribute to your credit score:

1. 1. Length of time you’ve had a credit account open (Newer accounts are scored differently than established accounts with long payment history.)
   2. Payment history on your accounts. Have you paid everything on time?
   3. How you utilize your credit. Are you using all of your credit card’s limit or do you only use it when you need it?
   4. Negative credit events, such as bankruptcies, collections, etc.
   5. Inquiries into your credit. Credit bureaus use this to see if you are looking to establish new debt.
   6. The number of open, active accounts. Do you have one debt or twenty?
   7. Type of accounts open. Consumer finance company debts are scored differently than mortgage debts or auto loans.

By federal law, you are entitled to receive a free credit report every 12 months from each bureau. You may obtain this free report from Annual Credit Report.  This website is authorized by the government to provide free credit reports. You may also contact one of the three bureaus.

1. 1. Equifax (1-800-685-1111)
   2. TransUnion (1-800-916-8800)
   3. Experian (1-888-397-3742)

You can improve your score over a period of time using the following guidelines:

1. 1. Do not apply for credit frequently. Every time you apply for credit, there is an inquiry on your credit report, and a high number of inquiries can reduce your score.
   2. Reduce your credit card balances as much as possible.
   3. Make sure to pay your bills on time. Late payments and collections can have a serious impact on your score.

DTI is the percentage of your gross monthly income that goes toward paying housing and debts. It is one way that mortgage lenders measure a borrower’s ability to manage monthly payments and repay debts.

LTV is a comparison between the appraised value of the home that you want to purchase or refinance and the amount of your mortgage loan. This figure, usually expressed as a percentage, helps lenders determine how much risk they’re potentially taking on and what loans you’re eligible for based on the size of your down payment or the amount of equity that you have in a home.

To access the equity in your home you can obtain a home equity loan, home equity line of credit, or a cash out refinance. These types of loans can be used for unexpected expenses, consolidating debt, home improvements, education expenses, and even vacation expenses.

We do mortgage lending in North Carolina, South Carolina, Tennessee, and Virginia.

Connect with a local mortgage loan officer to learn more about our competitive rates. 

Points (also called Discount Points) are fees that lenders charge to allow borrowers to reduce the interest rate on their mortgage over the life of the loan.  When you pay points you are offered rates lower than the market allows that day. So, you may be able to save a significant amount of money over the life of the loan if you consider this option, but choosing this option will increase your closing costs. One point equals one percent of the loan amount. On a $100,000 loan, one point is $1,000. There is no requirement to pay discount points; whether or not you decide to pay points is completely up to you.

A loan pre-approval simplifies the home buying and mortgage process by allowing your lender to review a lot of your documentation up front. As a pre-approved buyer, your offer on a home will be taken more seriously because it shows that you are qualified to borrow up to a certain amount of money. Click here to start the pre-approval process.

The first step in getting pre-approved is completing a mortgage application. The lender will review your credit report and talk to you about your income, assets, and liabilities to determine which loan program(s) you may qualify for, the maximum amount you can borrow, and the interest rates you will be offered. They will review income, asset, and liability documentation during this phase as well. A mortgage pre-approval is generally valid for 60 to 90 days. Keep in mind that your mortgage pre-approval does not completely guarantee your loan will be approved. Your final loan approval is completed by a mortgage underwriter who will review the documentation you’ve supplied to your Loan Officer and determine if you are able to qualify for your loan.

You will need to gather information about your income, assets, liabilities, and property details. Your lender may request specific information based on your personal situation and type of loan, but, in general, you should at least gather the items below:

• One month of pay stubs
• Two years of W-2s and tax returns
• Two months of bank statements on all accounts
• Sales contract and copies of the due diligence and/or deposit checks for the home you’re purchasing
• Contact information for your landlord, HR department, and any debts that you may be paying off
• Any applicable additional document, such as:

1. 1. 1. Divorce Decree/Separation Agreement
      2. Bankruptcy paperwork
      3. Letters of explanation on any derogatory debts
      4. Gift letter
      5. P&L statements for self-employed borrowers

Proof of homeowners insurance will be required before you can close your loan. Typically, you will need to present an insurance binder and pay for one year’s worth of insurance coverage.

A primary residence is a home you will live in the majority of the year. This type of home qualifies for the lowest minimum down payment and mortgage rates because lenders view it as lower risk. The amount of down payment varies based on the loan program, but it can be as little as 0%. For example, a primary home worth $350,000 obtaining a 30-year fixed mortgage with 5% down at a note rate of 7% and an APR of 7.138% would have a monthly Principal and Interest payment of $2,212.13.

A property is considered a second home when you live in the home only a portion of the year, it is located at least 50 miles away from your primary residence, and you do not plan on marketing the property for rent. Second homes have similar interest rates to primary residences, but require a larger minimum down payment of at least 10%. For example, a second home worth $350,000 obtaining a 30-year fixed mortgage with 25% down at a note rate of 7.625% and an APR of 7.768% would have a monthly Principal and Interest payment of $1,858.86.

An investment property is a property you purchase with the intention of earning rental income. This property type has the highest interest rates and down payment requirements. With this type of home, a down payment of at least 15% is required. For example, an investment property worth $350,000 obtaining a 30-year fixed mortgage with 25% down at a note rate of 7.625% and an APR of 7.768% would have a monthly Principal and Interest payment of $1,858.86.

Examples are based on rates effective December 28, 2023.

Right By You Mortgage requires an appraisal inspection, also referred to as an appraisal, on conventional mortgages. Government funded loans (e.g. FHA, VA, and USDA) have other requirements depending on property type. However, we strongly recommended that you obtain a home inspection and make your purchase offer contingent on the findings of the inspection.

An appraisal determines the value of the property you are purchasing or refinancing. It helps ensure you are not buying a property for more than the typical market value.

An appraiser must be licensed by the state. Usually, the appraiser will inspect both the interior and exterior of the home. However, in some cases, only an exterior inspection will be necessary based on your financial strength and the location of the home.

After the appraiser inspects the property, he or she will compare the qualities of your home with other homes that have sold recently in the same neighborhood. These homes are called “comparables” and play a significant role in the appraisal process. Using industry guidelines, the appraiser will try to weigh the major components of these properties (i.e., design, square footage, number of rooms, lot size, age, etc.) to the components of your home to come up with an estimated value of your home. The appraiser adjusts the price of each comparable sale (up or down) depending on how it compares (better or worse) with your property.

Both a home inspection and an appraisal are designed to protect you against potential issues with your new home. Because they have completely different purposes, you should rely on each of these reports uniquely to help confirm that you’ve found the perfect home.

An appraiser is generally looking at the marketability of your home. Is it similar in type, quality, square footage, condition to other homes in your market? Those factors will help your appraiser come up with a reasonable value of your home. During the appraisal inspection, your appraiser may also make note of obvious conditions that may affect the livability or marketability of the home such as broken windows, damaged flooring, roof leaks, unsafe decking, or foundation structural deficiencies.

However, appraisers are not construction experts and won’t find or report items that are not obvious. They won’t turn on every light switch, run every faucet, or inspect the attic or furnace. That’s where the home inspector comes in. Home inspectors perform a detailed inspection of your home from the attic to the crawl space. They can educate you about possible concerns or defects with the home so that you can make plans for any necessary repairs. 

Closing is typically held at the office of the real estate attorney you have chosen, unless scheduled otherwise. Some states permit “mail away” – or “mail out” – closings. If you’re able to obtain a “mail away” closing, your Real Estate Attorney will send you the documents using overnight delivery.

Fees vary according to the details of your loan. The average borrower will pay between 2% and 5% of the loan amount in various closing costs and prepaid expenses when they close on a mortgage. If applicable, the fees you will pay are outlined in your Loan Estimate that your lender is required to provide within 3 days of your application. Be sure to review the loan estimate carefully and ask questions if there is something you do not understand. Examples of typical closing costs and prepaid expenses include:

1. • Loan origination fee
   • Discount points
   • Credit report
   • Flood certification
   • Application/Commitment fee
   • Appraisal
   • Prepaid interest
   • Homeowners insurance premium
   • Mortgage insurance premium
   • FHA, VA, and USDA premiums
   • Attorney’s fees
   • Title search fee
   • Lender’s title insurance
   • Owner’s title insurance
   • Recording fees
   • Home inspection
   • Pest inspection
   • Property survey
   • Property taxes

Any conventional loan with less than a 20% down payment and/or equity in the home is required to escrow for property taxes and homeowners insurance. Also, all government loans require escrow. Escrow will be included in your monthly mortgage payment.

An escrow account is a separate account that you fund each month as part of your total monthly mortgage payment. The funds that are collected are used to make property tax and homeowners insurance (hazard insurance) payments on your behalf. Additionally, premiums due for mortgage insurance and flood insurance will also be paid from the escrow account, if applicable for your loan terms.

PMI is insurance that protects the lender in the event that you default on your loan. It’s arranged by the lender and provided by private insurance companies. PMI is usually required when you have a conventional loan and your downpayment is less than 20% of the home’s purchase price. If you’re refinancing with a conventional loan and your equity is less than 20% of the value of your home, PMI is also usually required.

Mortgage insurance is required if you have less than 20% equity (or down payment) in your home and protects the mortgage lender from losses if a customer is unable to make payments and defaults on the loan.

A homeowners insurance (or hazard insurance) policy covers loss from damages to your home, your belongings and accidents as outlined in your policy.

A title insurance policy protects a lender and/or homebuyer (only if homebuyer purchases a separate policy, called owner’s coverage) against any loss resulting from a title error or dispute.

Yes. We participate in the secondary mortgage market and have several investors we partner with. If your loan is sold, it will not change any of the terms of your original loan. So, while you may be paying a new lender, your payment, interest rate, and escrows will not change.

If your loan is sold, Right By You Mortgage will send you a transfer of servicing letter. The letter will explain the transfer, who your new servicer is, and when your next payment is due.

Conventional and government-backed loans both provide great financing options for your manufactured home. Please reach out to one of our loan officers to find out more information.

There are many options to choose from. Contact one of our loan officers to help you decide which option is best for you.

There are multiple options for 100% financing including VA loans and USDA loans.

A VA loan is guaranteed by the Veterans Administration and offers 100% financing to honorably discharged veterans, active duty personnel and their families.

A USDA loan is insured by the US Department of Agriculture and provides 100% financing on “rural” properties. This is not just for farm properties however. Many communities just outside of large markets are defined as “rural” by the USDA and qualify for this type of loan. Click here to see if your property is eligible. 

Please note that while these programs both offer 100% financing, there are many factors that will determine your eligibility to qualify for these programs.  Please reach out to one of our loan officers for more details.

A cash-out refinance is when you refinance your mortgage for more than you owe and convert the excess equity to cash. To be eligible to do a cash-out refinance, you usually need at least 20% equity in the home.

For example, if your home is worth $250,000 and you owe $150,000 on your mortgage, you could get up to $50,000 in cash if you refinance with a “cash out” refinance. The cash could be used for a renovation, debt consolidation, etc., but there are no lender restrictions on how you use the money you receive.

A home equity loan is a second mortgage. You receive the total amount of the loan up front and make fixed payments until the loan is paid in full. A home equity line of credit has flexible terms. You can access your money anytime and re-borrow up to your limit as it is paid back.

An ARM is a loan with an interest rate that is consistent for the first few years, then adjusts from time to time. Common ARM terms are 7/1 or 5/5, but others are often available. As an example, a 7/1 ARM offers the initially agreed upon rate for the first 7 years. Then, the interest can change every one year based on rates at that time.

Right By You Mortgage offers a variety of mortgage payment options. Click here to learn more.

Your monthly mortgage payment may be made up of the following:

1. • Principal
   • Interest
   • Taxes
   • Insurance

Refer to your loan documentation for payment details specific to your loan.

You can enroll in automatic payments (ACH) by calling Right By You Mortgage at 1-877-552-2242, option 4. An ACH authorization form must be completed to allow Right By You Mortgage to automatically draft your monthly payment from your designated account at Fidelity Bank or another bank.

Please allow for one billing cycle when setting up automated payments.

Yes, you can change or cancel your automatic payments by contacting Right By You Mortgage at 1-877-552-2242, option 4. If you’re enrolled in automatic payments with another bank’s bill payment service, please reach out to that provider to cancel or change the service.

The date the funds are deducted from your account is dependent on the payment method you select:

1. • Automatic payments:  Your mortgage payment will be deducted from your account on the date you selected the payment to draft. 
   • Payments sent by mail: Funds will be deducted from your account the day your payment is processed. Payments are typically processed the same day Right By You Mortgage receives your payment. 
   • Online Transfer: If you transfer funds from a Fidelity Bank account to pay your mortgage loan, please allow 24 hours for the payment to post to your account. For mortgage payments made by transferring funds from an account at another financial institution, please allow up to three business days for your payment to post.
   • Online payments (i.e. payments made through a bill payment service): Varies based on the bank the payment is originated from. Contact your bank for details.

Payments on fixed-rate mortgage typically don’t change unless you have an escrow account included in your monthly payment. An escrow account includes funds to cover your annual tax and homeowner’s insurance payment. As these items change, the amount needed to cover these costs may change. If these costs increase, you can opt to have your future payment adjusted to cover the difference or pay the difference in full to maintain the lowest possible payment.

If you have an adjustable-rate mortgage, your rate can change up or down after the initial fixed-rate term ends depending on market conditions. This will make your monthly payment increase or decrease.

You can find your mortgage payment amount on the payment slip that is provided in your closing documents. If you have a portfolio mortgage with Right By You Mortgage, you can also find your payment amount on your monthly mortgage statement. 

There are multiple ways to make a principal-only payment:

1. • Pay In-Person: visit your local Fidelity Bank branch and inform the branch associates that you would like to make a principal-only payment.
   • Make a Payment Online: Log in to online banking at your financial institution and schedule a one-time bill payment. Be sure to include a memo of “Principal Payment.”
   • Pay by Mail: Conveniently send your payment to Post Office Box 4129, Cary, North Carolina 27519. Be sure to include a memo of “Principal Payment” on your check.
   • Online Transfer: Log in to Fidelity Bank Online Banking and transfer funds from a Fidelity Bank account or an account at another Financial institution. Be sure to include “Principal Payment” in the memo or description field. 

For more information regarding payoff, call Right By You Mortgage at 1-877-552-2242, option 4 or contact your local mortgage loan officer.