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Think you know a bit about mortgages? Why not take our 10-question mortgage quiz and test your knowledge?

Think you know a bit about mortgages? Why not take our 10-question mortgage quiz and test your knowledge?

Is this loan fee normal?

Q: My bank wants a 1% origination fee to close on a construction loan. Is this outrageous or "normal".

A: It's probably close to normal. Most construction loans are short-term (usually a year) where you pay interest only, often at the Prime Rate plus a margin. The 1% fee may be credited toward closing costs on any permanent mortgage you obtain from the bank, so ask whether it can be applied.

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Keith Gumbinger
Keith Gumbinger
Mortgage Expert
Vice President, HSH.com
About Keith: Mortgage market observer and analyst with 35 years experience... (more)
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Q: How best to consolidate credit card debt?
SEP 24, 2024
A:

A lower-cost alternative might be to obtain a home equity line of credit or even an HECM.

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Q: The index which governs my ARM disappeared. What happens now?
SEP 09, 2024
A:

When an index disappears, it will be replaced with another indicator.

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Q: How should I pay my mortgage closing costs?
SEP 04, 2024
A:

Generally, there are three ways to approach the issue. Each option has different effects on your mortgage cost over time.

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