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If you're looking for a mortgage it may be tempting to pick up the phone book or to visit your local bank, after all that's how people have done it forever. Before you do - check out some of the advantages of shopping on-line for a mortgage. Faster, easier comparison-shopping To get an accurate cost comparison of traditional lenders you need to contact each of them and spend time collecting the appropriate data to decide who has the best loan options available. That in itself can be pretty time consuming, and to top it off, interest rates change regularly. If you don't get all your quotes at the same time you still may not know who has the best rate. The web makes getting an apples-to-apples mortgage comparison easier than ever! Apply at your convenience. There's no need to make an appointment with a loan advisor when you choose to apply on-line. You can complete the loan application in the morning or at midnight in the convenience of your own home without any pressure to make a final decision until you are ready! Personal Assistance whenever you need it.
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What is a valuation and who completes it? |
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To determine the value of the property you are purchasing or refinancing,
a valuation will be required. A valuation report is a written description
and estimate of the value of the property. Mortgage Lenders standards
govern not only the format for the
valuation; they also specify the valuer's qualifications and credentials.
In addition, Mortgage Lenders require that all valuers have the
necessary qualifications required for evaluating properties located
in your area, firsthibernian.com only uses qualified, experienced
valuers who are familiar with your area. The valuer will create
a written report for the Mortgage Lender. A copy can be provided
for you upon request from your loan advisor.
If the property you are purchasing is for investment purposes, the valuer will also consider the rental income that will be generated by the property to help determine the value.
How are interest rates determined? |
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Interest rates fluctuate based on a variety of factors, including inflation, the pace of economic growth and European Central Bank policy. Over time, inflation has the largest influence on the level of interest rates. A modest rate of inflation will almost always lead to low interest rates, while concerns about rising inflation normally cause interest rates to increase. The European Central Bank, implements policies designed to keep inflation and interest rates relatively low and stable.
How does First Hibernian provide the lowest rates possible? |
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First Hibernian deals with many of the leading Mortgage Lenders and so are able to direct you to the Mortgage Lender that best suits your circumstances. This service is provided at NO EXTRA COST to you.
Are there any pre-payment penalties charged
for mortgages offered
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Most of the variable rate mortgages we arrange have no penalties for pre-payment. Usually you can pay off your mortgage anytime with no additional charges. Some of the fixed rates we offer may have prepayment penalties. Contact a loan advisor for more details.
What is the maximum percentage of my
home's value that I can
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The maximum percentage of your home's value depends on the purpose
of your loan, how you use the property, and the loan type you choose.
Generally you can borrow more for a property that you occupy as
your primary residence, up to 92%, than you can borrow for a holiday
home or an investment property. If you are an investor it
may be possible to borrow 100%. It also makes a difference whether
you're looking to purchase a new home or refinance a home you already
own.
Is comparing APR's the best way to decide which lender has the lowest rates and fees? |
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The Central Bank of Ireland requires that all financial institutions disclose the Annual Percentage Rate (APR) when they advertise a rate. The APR is designed to present the actual cost of obtaining financing, by requiring that some, but not all closing fees are included in the APR calculation. These fees in addition to the interest rate determine the estimated cost of financing over the full term of the loan. For adjustable rate mortgages, the APR can be complex. Since no one knows exactly what market conditions will be in the future, assumptions must be made regarding future rate adjustments.
You can use the APR as a guideline to shop for loans but you should not depend solely on the APR in choosing the loan program that's best for you. Also, the APR doesn't include all the closing costs. Look at total fees, possible future rate adjustments and the length of time you plan to have your mortgage.
Don't forget that the APR is an effective interest rate - not the actual interest rate. Your monthly payments will be based on the actual interest rate, the amount you borrow, and the term of your loan.
The interest rate you offer is just a
little less than what I am paying
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The simple rule of thumb for determining if it makes sense to refinance is to analyse the amount that it will cost you to refinance compared to the monthly savings you'll have by reducing your payment. By dividing the cost of refinancing by the monthly savings you can determine how many monthly payments you'll have to make before you've recaptured the initial refinance cost. If you plan on staying in your home longer than the recapture time it may make sense for you to refinance.
What is an adjustable rate mortgage? |
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An adjustable rate mortgage is a loan type that offers a lower initial interest rate than most fixed rate loans. The trade off is that the interest rate can change periodically, usually in relation to an index, and the monthly payment will go up or down accordingly.
Against the advantage of the lower payment at the beginning of the loan, you should weigh the risk that an increase in interest rates would lead to higher monthly payments in the future. It's a trade-off. You get a lower rate with an adjustable rate mortgage in exchange for assuming more risk.
For many people in a variety of situations, an adjustable rate mortgage is the right mortgage choice, particularly if your income is likely to increase in the future or if you only plan on being in the home for 3 to5 years.
Here's some detailed information explaining how adjustable rate mortgages work. |
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With most adjustable rate mortgages, the interest rate and monthly payment are fixed for an initial time period such as 6 months, one year, three years, five years, or seven years. After the initial fixed period, the interest rate can change every year after. For example, one of our most popular adjustable rate mortgages is a (12 month) discount variable . The interest rate will not change for the first year (the initial adjustment period) but can change every year after the first year.
Tell me more about mortgage loan closing fees and how they are determined. |
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A home loan often involves many fees, such as the valuation fees, legal fees, stamp duty etc. These fees vary from lender to lender.
What is Stamp Duty? |
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Stamp duty is a Government charge which is payable by the purchaser
almost every time a property is bought. Stamp Duty is only charged
on new properties if the floor area is more than 1,346 square feet
(125 square metres). For a house with a larger floor area, the stamp
duty rules are quite complicated and your solicitor should be able
to advise you on the cost. For more information on stamp duty rates
go to our
calculator section, where we have installed
a calculator to estimate stamp duty rates.
What is Mortgage Protection Insurance? |
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Also known as mortgage protection. When purchasing your own home every lender will require the security that as a result of your untimely death the outstanding capital amount, excluding arrears will be repaid in full, provided premiums are paid to date. The debt is repaid regardless of future interest rates. A mortgage protection policy covers the amount outstanding on your loan. As the borrowing reduces, so does your level of cover. The premiums are normally paid on a monthly basis.
Disclaimer
This information centre is designed to provide assistance in the loan process. It is provided with the understanding that First Hibernian is not engaged in rendering legal, accounting, or other professional services. If legal advice, accounting service, or other expert assistance is required, the services of a competent professional should be sought.
Warning: Your home is at risk if you do not keep up payments on
a mortgage or any loan secured on it. Payment rates on this housing
loan may adjusted by the lender from time to time.
