MOST FREQUENTLY ASKED QUESTIONS

Question: It seems like Milestone is focused primarily on loans. Can I call about questions regarding selling my home?

Answer: Milestone is licensed by the state of California to handle the purchase and sale of residential real estate. If you have any questions please feel free to call us.

Question: How is Milestone able to credit my closing costs when my bank, credit union or other broker won't?

Answer: As a broker Milestone receives money from a lender to bring your business to their company. The higher the rate the more the lender will pay the broker. Milestone shares that money with the borrower in order to credit the closing costs. There are many reasons why other companies will not do this. The best way to get a specific answer is to ask Milestone's competition why they will not credit the closing costs. Milestone is not the only company that does this for its client's. If you are able to find another company that is willing to credit closing costs then you should be congratulated on your research efforts. The next step is to compare the rate that is being offered. You may often find that the rate Milestone is offering with a credit for the closing costs is still a lower rate than the competition has with points and fees.

Question: I know that I can get a lower interest rate by paying points and fees. How long will it take me to recoup that money by having a lower interest rate?

Answer: Depending on the program it will usually take anywhere from five to eleven years before you are able to get the money that you paid for the loan back by having a lower rate. The typical loan will allow the interest rate to drop by a quarter of a percent per point that is paid to buy down the rate. On a $400,000 loan a borrower can expect to pay $8,000 to receive a rate that is just a half of a percent lower than could be obtained with a credit for all closing costs. If you should need to refinance or sell before that time is up, you will certainly lose money.

Question: I want to lower my rate but I don't want to have to start all over again on a 30 year loan. What can I do about that?

Answer: Keep in mind that Fannie Mae and Freddie Mac loans do not have pre-payment penalties. You can always pay more than the minimum payment. If you lower your rate by just one half of a percent and continue making the same payment that you have been making, then you will pay your loan off about five years sooner. This is because the money that was going to interest will now be going towards principal.

Questions: Will refinancing affect my property taxes?

Answer: Refinancing your loan will not affect you property taxes as long as the borrower is not adding or taking people off of the property. Please consult with a licensed CPA for any tax questions.

Question: If rates go down after I lock my loan can I get a better rate?

Answer: If there is a substantial shift in the market the lenders will generally renegotiate and offer to lower the rate to the borrower. Please keep in mind that the market will move up or down every day. When an interest rate on a loan is locked, it is locked. If rates go up borrowers expect that lenders will honor an agreement on pricing. Lenders expect that also, but are aware that if there is a significant change they will lose business. Pricing will not be renegotiated unless there is a major shift in the market. This is another reason why receiving a credit for closing costs is so attractive. The borrower does not have to worry about timing the market perfectly. If rates go down in the future then they are able to lower their rate again with another credit.

Question: How many lenders does Milestone shop to find the best rate for a client?

Answer: Milestone values relationships . There is relatively little difference in pricing from lender to lender on the wholesale market. By forming a good relationship with a primary lender Milestone is able to offer competitive pricing because of volume and the trust and goodwill that can only be obtained from a successful track record.

Question: How long will it take to close my loan?

Answer: Turn times are subject to market conditions. Most loans take about three weeks to close.

Question: What happens if my appraisal comes in lower than expected?

Answer: This may affect the possibility of obtaining new financing as well as the interest rate. Lenders and real estate agents are no longer allowed to chose the appraiser or to even speak with them. It is up to the borrower to gather any information that they may feel is necessary before deciding to order an appraisal. Milestone will not be responsible for the cost of the appraisal at any point in time for any reason. This is because Milestone has no control in the appraisal process.

Question: I know that Milestone will credit the closing cost on a refinance. Can my purchase loan also receive a credit?

Answer: Yes. Milestone will often offer a credit on purchase loans. This can help a borrower to purchase a home sooner as they will not need to save up money to cover closing costs.

Question: Sometimes I see Milestone signs leading to homes that are listed with another real estate company. Why is that?

Answer: Milestone believes in cooperation. By teaming up with other real estate agents more can be accomplished. Real estate agents that work with Milestone enjoy not having to carry signs around in the trunk of their car so that they can place them out on the corner just before an open house. Milestone goes the extra mile for these cooperative agents and sets out the signs advertizing the open homes. This way the agent can go straight to their open house at 1:PM and leave for the rest of their weekend at 4:PM. Signs are placed out long before the open house so that more people will be aware that a home is on the market. The idea is to benefit everyone in the purchase and sales of homes. No one will get all of the market. Service to the community should be the top priority.