Mortgage Basics
This is the term for the money you borrow from a bank to buy a house.
What is a mortgage?
A forward commitment is an agreement where a lender locks in this for a future loan.
What is an interest rate (or “rate lock”)?
Mungo Homes is headquartered in this Southeastern city and state.
What is Columbia, SC?
This is the fee you pay the lender to process your loan application.
What is an origination fee (or application fee)?
The minimum down payment for an FHA loan is generally this percentage.
What is 3.5%?
The portion of the home’s purchase price you pay upfront, not borrowed.
What is a down payment?
Builders often use forward commitments to offer buyers this kind of incentive on mortgage rates.
What is a below-market / discounted interest rate?
Mungo Homes was founded in this year, making it one of the Southeast’s long-standing family homebuilders.
What is 1954?
The monthly fee some borrowers pay if they put down less than 20% is called this.
What is private mortgage insurance (PMI)?
Borrowers using FHA loans must pay this type of insurance, often both upfront and monthly.
What is Mortgage Insurance Premium (MIP)?
True or False: A 15-year mortgage usually has a higher monthly payment than a 30-year mortgage.
True
In a forward commitment, the lender usually requires the builder to do this upfront to reserve the interest rate block.
What is deposit funds (or pay fees) upfront to secure the rate block?
In 2018, Mungo Homes became part of this larger national homebuilding group.
What is Clayton Properties Group, a Berkshire Hathaway company?
These are the closing day costs that include title fees, appraisal, and attorney fees.
What are closing costs?
VA loans typically require this as part of the home purchase process—unless the borrower doesn’t have full entitlement or the home costs more than its appraised value.
What is "no down payment required"?
This government-backed loan type is popular with military veterans.
What is a VA loan?
Forward commitments allow builders to protect buyers against this market risk.
What is the risk of rising interest rates?
Mungo Homes Mission Statement
What is "To serve so that others are empowered to thrive.
A lender might let you lower your interest rate upfront by paying these.
What are discount points?
The one-time cost that most VA borrowers must pay as part of the loan, which can be financed into the mortgage.
What is the VA funding fee?
The process of a bank taking ownership of a home due to missed payments.
What is foreclosure?
How much does it cost the builder in upfront fees to fund a forward commitment?
What is it depends, but typically between 5-7% of the loan amount for the specific transaction.
The CEO of Mungo Homes
Who is Geoff Shiley?
One discount point will typically buy your interest rate down this much.
What is .25% ?
The official document you must obtain to prove eligibility for a VA-backed loan.
What is a Certificate of Eligibility (COE)?