• What is a point?
    A point is another way of quoting a fee. Simply put, 1 point equals 1%. Points are paid by the borrower for origination costs or as a way to obtain a lower interest rate (discount). Bethpage will allow the member to pay discount points to buy a particular (usually lower) rate. For example, if rates were at 6.75% with 0 points and the member wanted a lower rate of 6.5%, we could do so with a hypothetical charge of .875%. NOTE: The lower the rate, the higher the discount point. Typically, you should quote the rate closest to zero discount points.
    Selling the property of refinancing prior to this break-even point will result in a net financial loss for the buyer, while keeping the loan for longer than, this break-even point will result in a net financial savings for the buyer.  The longer you keep the property financed under the loan with purchased points, the more the money spent on the points will pay off.  If the intention is to buy and sell the property of refinance in a rapid fashion, buying point sis actually going to end up costing more than just paying the loan at the higher interest rate.
  • What is the annual percentage rate (APR)?

    APR - The actual cost of a loan stated as a yearly rate; including such items as interest payments, principal payments, loan insurance, processing, credit reports, appraisals and loan origination fee (points).

  • What are closing cost?

    Closing Costs are costs that a borrower incurs for a service. (Filing Fees are an example) Closing costs can vary a great deal and in many cases may be included the loan amount.

  • What is the difference between a conforming and non-conforming loan?

    A conforming loan is one that does not exceed the maximum mortgage limit as defined by Fannie Mae and Freddie Mac.  Conforming maximums are (for all states except Hawaii and Alaska):*

    • $417.000 for a 1 unit property
    • $533,850 for a 2 unit property
    • $645,300 for a 3 unit property
    • $801,950 for a 4 unit property

    A non-conforming mortgage (also called a jumbo mortgage) is one that exceeds these limits. Interest rates on non-conforming mortgages are generally about a half percentage point higher than conforming ones.

    Note:  Fannie Mae and Freddie Mac have increased the maximum conforming loan amount for certain high cost areas.  Please consult with your loan officer to see if your property is located in one of the high cost areas.

  • What is a rate lock?

    A rate lock is a means for the borrower to lock in the lender's current interest rate. Typically, a rate lock will last 15, 30, 40 or 60 days, and during that time the borrower can shop for a new home knowing what they can afford at that interest rate. 

  We do business in accordance with the Federal Fair Housing Law and the Equal Credit Opportunity Act.