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Frequently Asked Questions


Why do most lenders charge up-front fees just to apply for a mortgage?
Some lenders will charge you an up-front fee of $300 to $500 to apply, usually an application or appraisal fee. Every reputable lender will charge you a fee to lock in a rate and order an appraisal. If they don't, you're not locked in. Some lenders say they don't chare an application fee, but then you find out they charge a lock fee. To eliminate this confusion Xcapital has a simple policy that is we require a credit card number as a security for fees incurred if you back out of the loan. This fee is $500 and only is charged if you back out of the loan. The fee is not charged if the loan is denied.

Does Xcapital Inc charge an application fee?
No. Xcapital requires a credit card number to lock the rate and order an appraisal. Don't be fooled by lenders saying they don't charge an application fee, but call it something else.

Can I obtain home financing without paying points and/or closing costs?
Yes. Xcapital Inc offers you the option of paying no points or closing costs for your loan.Back to top

Do I have to make an office visit to apply for a home loan?
Although most lenders will require you to make an office visit during the course of getting your loan, Xcapital Inc does not require an office visit. You can apply only online or call 1-866-888-2158 to speak with an expert Loan Consultant. Either way we're available on your terms. Then you can follow the progress of your loan online and have instant access to your personal Loan Consultant - by phone or e-mail.

How do I close my loan?
First, we handle all the paperwork. Once your documents are ready to sign, we will schedule a notary public or settlement agent to come to your office or home. It's that easy.

What are points?
Points are a method of reducing the interest rate you would pay on a loan. One point is equivalent to 1% of the loan amount. For example, 2 points on a loan amount of $200,000 would be $4,000. In general, a loan requiring 2 points has a lower interest rate than one with 1 point or 0 points, but you would pay the higher amount of fees from the increased points in your closing costs. Paying points may be a more attractive option for those planning to stay in their new home for longer periods of time, usually at least three years or more.

What is APR?
APR is the abbreviation for Annual Percentage Rate. The APR is not the interest rate on the loan and the APR is not used to calculate your monthly payments. The APR is the cost of the credit as a yearly rate. Included in the calculations of APR, are the loan amount, interest rate, and certain fees categorized as finance charges.

Is it a good idea to shop for a loan on the basis of comparing the APR?
The APR in theory should be used to compare loans, but, many lenders play games and make it confusing when trying to get a direct comparison of terms. Xcapital Inc has simplified this process with 2 easy rules. Always ask what the note rate is (which is rate of your loan) and ask for a guarantee of all closing costs including third party fees. Any good lender will know what the total fees will be. If the lender can't guarantee all the costs, run for the exit or you'll have a big surprise at the close. Choosing a broker like Xcapital Inc will guarantee you have no unpleasant surprises throughout the process of obtaining your home loan.

What is the difference between a fixed rate loan and an adjustable rate loan?
A fixed-rate loan is one where the interest rate remains constant throughout the entire term. An adjustable-rate mortgage will generally start off at a lower rate, but then will adjust at fixed periods throughout the life of the loan.Back to top

What is a teaser rate?
A teaser rate, a.k.a. an introductory rate, is a low start rate on adjustable-rate mortgage, or home equity line of credit. It is critical to analyze the terms of such a rate, as it may be short in duration or have other conditions.

When can I lock in my rate?
With Xcapital Inc you can lock in an interest rate at anytime after you’ve applied. Click here to read our rate lock policy.

What is mortgage insurance and when do I need it?
Mortgage insurance - or PMI [Private Mortgage Insurance] as it is frequently called, is the added amount a borrower is required to pay when the loan to value on the property being mortgaged is greater than 80%. The mortgage insurance protects the lender against loan default, not the borrower.

Is there a way to avoid mortgage insurance?
Yes. At Xcapital Inc we offer several programs with no PMI required. Call us to find out about the different programs we offer.

What is a conforming or jumbo loan?
A conforming loan fits the guidelines established by the Federal Home Loan Mortgage Corporation [Freddie Mac] and or Federal National Mortgage Association [Fannie Mae]. Currently, those guidelines are:

  • 1 Unit-up to $322,700 (up to $484,050 in Alaska and Hawaii)
  • 2 Units-up to $413,100 (up to $619,650 in Alaska and Hawaii)
  • 3 Units-up to $499,300 (up to $748,950 in Alaska and Hawaii)
  • 4 Units-up to $620,500 (up to $930,750 in Alaska and Hawaii)
  • A jumbo loan is one that exceeds these loan amounts

What are Freddie Mac and Fannie Mae?
Freddie Mac refers to the Federal Home Loan Mortgage Corporation and Fannie Mae refers to the Federal National Mortgage Association. Both are organizations created by Congress to buy loans from lending institutions.

What are FHA loans?
FHA loans are those that fit under the guidelines established by the Federal Housing Administration, which is a government agency under the direction of the Department of Housing and Urban Development [HUD]. FHA loans are often more lenient than those set by other loan types, and the FHA requires a seller to pay for many of the fees associated with selling a property, often making them more attractive to borrowers who qualify.

Can I purchase a home or refinance with FHA financing when applying with Xcapital Inc?
Xcapital is in the process of being approved for FHA loans. Check back with us shortly.

How much cash do I need for a down payment?
Xcapital Inc requires as little as 3% of the purchase price as a down payment. The down payment amount required does vary by loan type and purchase price, so please discuss the exact down payment requirements with an Xcapital Inc loan consultant regarding the loan you are interested in.

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Should I apply for a loan before I start looking for property?
Yes. By applying and getting preapproved you will be better prepared to know ahead of time how much you can afford.

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Refinancing Facts

What are the advantages of refinancing a home?
The advantages of refinancing your home mortgage may include the following:

  • Stability-Converting an adjustable-rate mortgage to a fixed-rate mortgage means your monthly payments will always be the same amount-no surprise increases.

  • Savings-Reduce your monthly mortgage payments by refinancing a lower interest rate when rates are low to save money each month.

  • Tax Deduction-Get a tax deduction on the amount you refinance, even if you take cash out to use for other purposes. Consult your tax advisor to determine how much of a refinanced payment may be tax-deductible.

  • Increased Value-Use additional cash from a refinance to improve your home and increase its value. Back to top

What are the benefits of consolidating debt by refinancing my mortgage?
There can be many benefits to refinancing, including:

  • Saving money by reducing your current monthly mortgage payments

  • Increasing your tax deductions by financing other needs with a mortgage [consult your tax advisor].

  • Eliminating monthly bill payments, by consolidating all your debt into one monthly mortgage payment

If I currently have mortgage insurance, will refinancing eliminate it?
It is possible to eliminate current mortgage insurance payments when you refinance.

Criteria:
• Your home has appreciated sufficiently so that your loan amount would be no more than 80% of the new appraised value.

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Home Equity Facts

What are the benefits of taking out a home equity loan?
Taking out a home equity loan allows you to consolidate other debts you may have or use the equity you’ve built in your home to get cash for other purposes, such as home improvement, financing a child’s education, a new car, or other personal needs. In addition, you can realize:

  • Savings-Consolidating debt from other sources with higher interest rates may mean overall lower monthly payments.

  • Tax Deduction-Get a tax deduction on the amount of your home equity loan interest payments, even if you take cash out to use for other purposes. Consult with your tax advisor to determine how much of your new loan payment may be tax deductible

  • Convenience-You can consolidate bills into one monthly payment Back to top

How long does it take to get a home equity loan?
You can close your home equity loan with Xcapital In in as little as 20 working days, depending on where you live.Back to top

What’s the difference between a home equity line of credit and a home equity loan?
With a HELOC, you are qualified for a maximum credit line that you can borrow from on a revolving basis, like a credit card. The interest rate on a HELOC is typically an adjustable-rate that fluctuates with the pre-determined index, usually the prime rate published in major daily newspapers, plus the margin. Your monthly payment will change as your loan balance and interest rates change, depending on how much you’ve borrowed or drawn on the line.

How does a home equity line of credit (HELOC) work?
Because you can withdraw funds up to your maximum approved loan amount at any time, a home equity line of credit is similar to a credit card. As you pay back the loan each month, your available funds increase. The monthly payment amount will adjust as your loan balance and interest rate changes. You can access your home equity line of credit with personal checks, which will be mailed to your home. Or if you prefer, we can wire transfer your funds into a designated account.Back to top

How much do I qualify for?
You can call one of our knowledgeable loan consultants toll-free at 1-866-888-2158 and get preapproved in minutes right over the phone. Once you submit a full application online or over the phone, our loan experts will be able to tell you the amount, interest rate, and monthly payments that you qualify for.

How much equity do I need in my home in order to qualify for a home equity loan?
On a primary residence, Xcapital Inc can get a loan up to 100% of the value of your home, up to a maximum credit limit. Call for details.Back to top

How is the APR on a credit line calculated?
Unlike a first mortgage, the annual percentage rate (APR) on an equity loan does not take into account all the fees and charges. It is based on the interest rate alone, which is calculated by taking the Index (usually the prime rate as published in the Wall Street Journal), plus the applicable margin. When comparing lenders and products, it is important to compare all of the costs of the loan in addition to the APR.Back to top

Are there any application fees, points, or closing fees on HELOCs or HEILs?
Application costs or fees associated with these equity lines vary according to their size and if you are doing them as a stand alone or as a piggyback to another loan. Tthere is an annual membership fee of $50 for the home equity line of credit. This fee is waived for the first year. If you close the account within 24 months of opening it, we will charge you an early account closure penalty of $300.Back to top

How can I have my funds disbursed to me?
Once your equity loan transaction is completed, the title company will send you a disbursement check for the total amount applied for and approved by the lender, minus any funds disbursed directly to your creditors. For equity lines of credit, the lender will send you checks within two weeks of closing, which you can use to access your line of credit at any time. If funds are needed immediately, you may request the lender send you an initial disbursement amount upon the close of your transaction.Back to top

Is there a minimum or maximum credit amount?
Yes. The minimum equity line or equity loan amount is $20,000 , up to a maximum credit limit of $500,000 if you qualify.

Can I pay off my home equity loan early?
Yes. To obtain an accurate payoff amount just contact the lender anytime. You can then pay off your home equity loan by mailing a check for the outstanding balance. You may prepay all or any amount owing under your home equity credit line at any time without penalty, as long as the account is not closed. If you close the account within 24 months after the account was opened we will charge you an early account closure penalty of $300.

How do I set up automatic payments for my Home Equity loan?
To initiate automatic payments, simply request it at the time of application.Back to top

What are the benefits of paying my monthly bills via ACH? (Automated Clearing House)
There are several benefits to paying your bills automatically through auto debit from your checking account. You can qualify for a .25% discount on your loan if you elect to have your monthly payments automatically deducted from your checking account. Automatic payments also eliminate the need to mail monthly checks, and can help you save money on postage.

Read What Our
Clients Say!

As a real estate investor, it's critical to have complete confidence in knowing the financial aspects of my transactions are handled quickly, accurately and with the best product to match my needs.  That's why I continue to rely on Xcapital for their sound advice and professional service.

Take Care...
David Murdoch