Indigo Financial Group Inc.
51 N US 31 Whiteland, IN 46184
227 N 9th St Lincoln, NE 68508

United States
ph: IN-(317) 535-4801 / NE-(402) 817-3855
fax: IN-(317) 535-4804 / NE-(402) 472-2814

Indigo Financial Group, Inc.    "Customers Go Where They Are Welcome and
        Stay Where They Are Appreciated"

 

 

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Frequently Asked Questions

Frequently Asked Questions

 

What is a mortgage?

A mortgage is a device used to create a lien on real estate by contract. It is used as a method by which individuals or businesses can buy residential or commercial property without paying the full value upfront. The borrower (also called the mortgagor) uses a mortgage to pledge real property to the lender (also called the mortgagee) as security against the debt (also called hypothecation) for the rest of the value of the property. In legal terms, the creation of a mortgage gives the legal title of the land to the mortgagee and an equitable title (called "equity of redemption") to the mortgagor. The legal title, however, only exists as a security for a debt and does not convey any title or powers associated real property.

The mortgage instrument contains two parts:

  1. the mortgage, which is the pledge
  2. the note, which is the actual evidence of the debt and promise to repay (sometimes called a promissory note).

To protect the lender, a mortgage is recorded in the public records creating a lien (when there are multiple liens, order of recording determines priority). Since mortgage debt is often the largest debt owed by the debtor, banks and other mortgage lenders run title searches of the real property to make certain that the lien of the mortgage is prior to anyone else's claim. Tax liens, in some cases, will come ahead of mortgages. For this reason, if a borrower has delinquent property taxes, the bank will often pay them to prevent the lienholder from foreclosing and wiping out the mortgage.

What is an interest only mortgage?

An interest-only loan is a loan in which for a set term the borrower pays only the interest on the capital; the capital remains owing. At the end of the term the borrower may renew the interest-only mortgage, repay the capital, or (with some lenders) convert the loan to a principal and interest payment loan at his option.

In the United States, a five or ten year interest-only period is typical. After this time, the principal balance is amortized for the remaining term. In other words, if a borrower had a thirty year mortgage and the first ten years were interest only, at the end of the first ten years, the principal balance would be amortized for the remaining period or twenty years. The practical result is that the early repayments (in the interest-only period) are substantially lower than the later repayments. This enables a borrower who expects to increase their salary substantially over the course of the loan to borrow more than they would have otherwise been able to afford. Interest only loans were popular in the 1920s. Due to the economic downturn and lack of work for the average person, there were many foreclosures during the Great Depression of the 1930s.

Interest-only loans are popular ways of borrowing money to buy an asset that is unlikely to depreciate much and which can be sold at the end of the loan to repay the capital. For example, second homes, or properties bought for letting to others

What should I look for when shopping for a home mortgage?

If you decide to refinance your mortgage, shopping around by calling several lending institutions to ask each one what interest and fees they charge will help you get the best deal available. Also ask each about their "annual percentage rate" (APR) and compare them. The APR will tell you the total credit costs of the refinancing, including interest, points, and other charges. Remember, you do not have to refinance your mortgage with the same lender that provided your original mortgage.

Do I need good credit?

Typically, credit must be up to date and no late pays in the last year. Our representatives can help you obtain a copy of your credit report and have a loan officer determine your credit worthiness. We can help people clear up inaccurate credit info. We also work with people to clear up bad debt. If you think you wish to take advantage of our free credit help, please contact one of our mortgage specialists.

If I have bad credit can you still help me?

One of our loan officers will need to review all credit information. Some bad credit is workable. Do not judge your credit. If you think you may want to take advantage of our free credit help, please contact us.

What does "qualified" mean?

Qualified means that you make enough income and have a debt load that can support a house payment of "X" amount of dollars.

What is the difference between qualified and approved?

Approved means that the information you supplied to us on your qualification application has been verified with your employer and the debt information you gave was verified with your creditors. Approved means you have a DONE DEAL(except for the property information)!! Qualified means we still need to pull your credit bureaus and verify your income with your employer.  for anything you like, but we recommend focusing on one or two related topics to avoid confusing your readers. Remember that you can always add more pages if you need them.

 

 

Indigo Financial Group Inc.
51 N US 31 Whiteland, IN 46184
227 N 9th St Lincoln, NE 68508

United States
ph: IN-(317) 535-4801 / NE-(402) 817-3855
fax: IN-(317) 535-4804 / NE-(402) 472-2814