1. What is a lock commitment?
A lock commitment is a written agreement between you and Moncor, entitled a Rate Lock Confirmation, which guarantees a specific interest rate at a particular price if the loan closes within a set period of time.

2. When can I lock my rate?
You may lock your loan at any time with a Moncor Loan officer.

3. Can I change my loans rate or loan program once I have already locked?
If for some reason you want to select another rate on the same or a different loan program, Moncor will accommodate your request. Moncor willl use the rate sheet from the day you first locked to determine the price (points/credit) associated with your newly selected rate and/or loan program. Such changes may result in the re-approval of your loan and/or a longer processing time. As a result, if your loan does not fund by the lock expiration date, Moncor reserves the right to re-price your interest rate and/or lender origination points/credit.

4. What happens to my rate if the loan does not fund within the lock period?
If your lock commitment expires prior to funding due to delays in our receiving the documentation necessary to approve and fund your loan, your loan will be subject to worse case pricing. Worse Case Pricing is calculated by comparing pricing from the original lock date to current pricing and the selecting the higher of the two.

5. How can I check the interest rates Moncor is currently offering?
Call a Moncor representative and ask. Since each loan is different in many different ways it is hard to post an easy to read rate sheet on our web site.

6. Who locks my rate?
You give authorization to the Loan Officer.

7. How long is my rate locked?
Typically rate locks are valid for 30 days. However, additional 15 day increments may be added up to 90 days.

8. Can the rate lock period be increased or decreased after I have selected a rate lock period and locked a rate on my purchase loan?
Your rate lock period may be extended, however, you will be subject to either the rate that is in effect at the time you extend your lock or the rate you are currently locked, whichever is higher.

9. If rates decrease after I lock my loan, can I get a better rate?
Moncor does not renegotiate interest rates once they are locked. Should interest rates increase, Moncor is obligated to honor the rate lock as long as your lock does not expire. Likewise, should interest rates decrease; you are obligated to honor the lock.

10. Can I get a better rate with a shorter lock period?
Typically the answer is yes. 15 day locks are almost always priced better than 60 day locks.

11. What are third party fees?
Third party fees are any fees associated with the loan that are charged by parties other than Moncor. Generally, third party fees may include appraisal fees, title and closing fees, notary fees, recording fees, delivery/courier fees, or local transfer taxes.

12. What are closing costs?
Closing costs are expenses incurred by borrowers (and sellers in the case of purchase transactions) when obtaining a new mortgage loan and transferring property. Non-Recurring Closing Costs (NRCCs) are costs that are only charged in connection with obtaining a new mortgage loan. Examples of NRCCs would include: origination fee, title insurance, settlement agent fee, notary fee, commitment/administration fee, or appraisal fee. Recurring Closing Costs include costs that not only may be charged in connection with obtaining a new mortgage loan, but are also charged on an ongoing basis. Examples of Recurring Closing Cost would include; prepaid interest, property taxes and hazard insurance. Other fees may be included depending on the transaction or generally accepted charges in your location.

13. Do I have to pay closing costs if I am an existing Moncor customer?
Yes, closing costs have to be paid on all loans. However, depending on your loan terms and the selected loan program, Moncor may pay for some or all of your closing costs in exchange for selecting a higher interest rate.

14. Can you send me a Good Faith Estimate so I can compare your program to other offers?
Moncor will be happy to provide you with a Good Faith Estimate. However, a true GFE should not be relied upon unless you have submitted your application. Within three days after we have received your completed application, Moncor will provide you a package of initial disclosures including a Good Faith Estimate.

15. What is an escrow/impound account?
Also known as an "escrow account," this is an account established with Moncor to pay your property taxes, homeowners insurance, flood insurance (if required) and mortgage insurance (if required) when they become due. If you have an escrow/impound account, then your regular monthly mortgage payment will include principal, interest and an escrow payment. Your escrow payment is based on 1/12th of the annual estimated payments for your property taxes, homeowners insurance, flood insurance (if required) and mortgage insurance (if required).

16. When do I have to carry flood insurance?
If your property lies within Flood Zone "A" or "V", federal law (FEMA) requires you to maintain and provide proof of flood insurance coverage. The Flood Disaster Protection Act of 1973 and the National Flood Insurance Reform Act of 1994 prohibit Federal agency lenders such as Moncor from originating home loans in Flood Zone "A" or "V" unless flood insurance has been purchased by the homeowner and is maintained during the term of the loan.

17. Do I need an escrow/impound account?
Moncor only requires an escrow/impound account when your loan-to-value exceeds 80 percent. Or, if you are selecting a government loan program such as FHA or VA.

18. Will I receive a better rate or price by electing to have an escrow/impound account with my loan?
Depends on your loan-to-value. Some loan programs actually require a fee to waive the escrow/impound account. Another reason to talk with your loan officer regarding your rate and fees. 

19. How long does the loan process take?
The loan process varies based upon current market conditions, the program you select and the state in which the property is located. The process generally can take as few as 5 days or as long as 60 days.

20. Can I choose the title company?
You have the option to choose the title company.

21. Can I choose the appraiser?
Moncor does not allow customers to choose their own appraiser. We will order all required appraisal services from one of our approved appraisal vendors to insure a quality product is provided at a competitive price and without deceptive values being provided.

22. Can I receive a copy of the appraisal?
Yes. Once the loan funds, a copy of the appraisal can be ordered in one of two ways: 1) You may contact your Loan Officer to order the appraisal or, 2) You may submit a written request to Moncor loan servicing department at:

Moncor, Inc.
4851 Independence Street, Suite 150
Wheat Ridge, CO 80033

23. Can I receive a copy of my credit report?
Yes, you can receive a copy of your credit report by contacting your Loan Officer. He/She will provide you with the appropriate contact information.

24. Does Moncor charge an upfront fee/deposit?
Moncor may charge up to a $500 upfront deposit (depending on the state in which your property is located) on all loans that require a new appraisal. The upfront deposit will be refunded when the loan is closed.

25. What is the loan-to-value ratio (LTV)?
It is the ratio determined by dividing the loan amount by the value of the property or the sales price, whichever is less. The loan-to-value ratio (LTV) is one consideration in qualifying you for a loan. To calculate the LTV, divide the amount you are borrowing by the value of the subject property. For example, if you are purchasing a property that is selling and appraising for $200,000 and you would like to borrow $100,000, the LTV is 50%.

26. What is the difference between a Conforming loan and a Jumbo loan?
The term Conforming refers to loans that conform to the standards established by Fannie Mae (the Federal National Mortgage Association) and Freddie Mac (the Federal Home Loan Mortgage Corporation) and Jumbo refers to loans with loan limits above the Conforming limit. As of January 2005, the Conforming loan limit is $417,000 for a single unit property. Typically, interest rates for a Conforming loan will be 0.25%-0.375% lower than a Jumbo loan with the same terms. In recent years, the Conforming loan limit has increased to keep pace with inflation.

27. What is private mortgage insurance (PMI)?
Private mortgage insurance (PMI) is a type of insurance that protects the lender in the event a borrower does not make their payments in a timely manner, resulting in loan default and ultimately foreclosure. On most loan programs, PMI is required if the loan-to-value ratio is greater than 80 percent.

28. Can I select a higher rate in lieu of paying PMI?
Moncor may offer this option depending on the loan program you choose. Many borrowers choose to break a loan into 2 loans sometimes refered to as an 80/20.