We know the questions on your mind when it comes to mortgage fees-WHAT are they and WHY do I pay them? At NorthPort Funding, we set out to streamline the mortgage process. In doing so, we’ve eliminated nonessential fees, unnecessary steps, and time-wasting appointments. Our efficiency not only makes it easier to buy a home, it translates into the best rates available.

There is a very distinct difference between physician home loans and conventional loans. They are more commonly known in the lending world as a portfolio loan. A portfolio loan is a mortgage that is borrowed from the lending institutions balance sheet or deposits and held with that bank until the home is refinanced to another lender or the home is sold. Because the bank is lending its own money, it is taking a calculated risk by not taking out a mortgage insurance policy or by paying for it outside of the loan. A conventional loan is secured by an investor and a servicer, where the mortgage can be pooled together with other similar mortgages and sold. Because of this process a conventional loan does require PMI or private mortgage insurance to cover losses potentially incurred by the investor should a borrower fail to repay the mortgage.

There are advantages and disadvantages to both 15-year and 30-year home loans. The interest rate is lower on a 15-year mortgage, and because the term is half as long, you'll pay a lot less interest over the life of the loan. Of course, that means your payment will be higher, too, than with a 30-year mortgage. Consult with the mortgage experts at NorthPort Funding and review your personal goals and options when it comes to the structure of your loan. With NorthPort, you can expect a high touch and high-tech experience. Our Instant Prequalify Technology allows you to see if you are qualified to buy a home without affecting your credit score. We have built a business that is recognized for integrity, excellent service and efficient processes.

The 20% down payment rule of thumb is a way to manage your costs when buying a home. By making a down payment that’s at least 20% of the purchase price, you often avoid extra monthly expenses and pay less interest than somebody who buys with a smaller down payment. However, putting less than 20% down allows you to diversify your extra cash into a savings “safety net.” Let’s review the rule in detail so you can make informed buying decisions, learn rationale behind the 20% figure, and explore alternatives so you can decide on the right down payment amount with the mortgage experts at NorthPort Funding.