Friday's FAQ's!

  • Please explain the terms of an adjustable rate mortgage (ARM).  The margin is 2.25, caps are 2/2/5, the index is LIBOR and it is a 5/1 ARM.    The rate is fixed for the first five years of the mortgage, and will adjust 1 time at the anniversary each year (5/1 ARM).  When it adjusts, the new rate will be the margin (2.25) + the index (LIBOR), rounded to the nearest .125%.  The caps are your maximum adjustment or ceiling, once th e mortgage starts adjusting, it can adjust no more than 2% at the first adjustment, no more than 2% at any adjustment and not more than 5% over the life of the loan (2/2/5).     
  • We are separating.  I am going to buy my spouse out of our current home.  How does this work?  First you need a formal separation agreement, this determines who is responsible for what and sets some initial financial parameters.  Then we refinance the property removing your spouse from the mortgage and deed.                      
  • I am being a home with my fiancée.  I want to use my VA eligibility, can she be on the loan or on the title?  If you are not married or she is also not in the military - no.  VA does not allow a non-spouse or non-veteran to be part of a VA transaction.

Jennifer Keenan, Senior Mortgage Consultant

NMLS# 101837, Tidewater Home Funding  (757) 366-8690