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Resources & Help

For business related questions, i.e. broker package submission, website training, product selection, rate locks, DU findings, etc, please contact your Account Executive.

Common Errors

File Upload

I selected my point-of-sale software, but when the page refreshed I don't see any loans to select from on the page.

You probably need to install Active X. This is a one time installation, and the software is free of charge. If you need assistance installing this, please contact our support line.

I'm receiving an error that says "Invalid 1003 Data," but I don't understand what this means.

Near the end of the message, the field causing error will be named. The field(s) must be corrected in your POS system, then upload again.

I'm receiving a message that a loan already exists with my borrower's social security number or that the loan already exists in my pipeline. How can I fix this?

There is already a loan in our system with this name, SSN, and property address. If you are working on the same file and uploading changes, please return to your pipeline and use the FILE UPLOAD option in your actions list next to the desired loan.

Register Loan

When I attempt to register my loan I get an error that says, "Invalid 1003 Data." Why?

Near the end of the message the field that is causing the error will be named. The error(s) can be corrected using the EDIT LOAN option in the actions list on the pipeline.

Edit Loan

After editing my loan, and clicking on "Save and Close," I get an error that says "We are currently experiencing technical difficulties. Why?

If the loan is staging (it doesn't have a 10 digit Freedom loan number) register the loan, then try to edit the file. If the loan is registered, please call the broker support number shown on this page.

For Technical Assistance Please Call 1.800.871.6467

Do/DU Errors

I don't understand the error FNMA is returning. What does this mean?

Oftentimes, this is a problem with the data. Scroll down the error log and you can generally see what data is incorrect or missing. Any warnings can be ignored, as they will not prevent findings.

I'm getting an error that my account and or password not recognized. Why?

Make sure that you are using the info that was given to you by your credit agency specifically for reissuing through FNMA. If don't know this information, please contact the credit agency you are using. Note: The first time a loan is run submitted to DU, you must reissue the credit report.

The message says my case file is not associated with this institution. What do I do?

Go directly to DO or DU and release the casefile to Freedom Mortgage. If you need help with this, please call FNMA at 888-357-6800.

Which loans are run thru DU?

All loans submitted to Freedom Mortgage must be run through DU.

I have unmarried borrowers, but I cannot reissue credit reports on the individual borrowers. Why?

Register the loan. Then contact Freedom to have the borrowers corrected.

I'm receiving a message stating this loan is not eligible as rate/term refinance. Why?

The purpose of refinance must be Limited Cash Out, or Cash Out. Rate/Term Refi's are not permitted on FNMA loans.

The error states there is too much cash taken out for limited cash out loan, but that's not true. What do I do?

Ensure all mortgage liabilities are matched to the REO properties. Then, confirm that the appropriate mortgages are showing as Paid by Close.

The error states the total expense ratio < (is less than) housing ratio, but that's not true. What do I do?

Ensure sure all mortgage liabilities are matched to the REO properties. Also, present housing expense must match the mortgage liability.

Working With Your Pipeline

What functionality is available in the Pipeline View?

The Pipeline View displays all active loans associated with a Correspondent Loan Officer. Active loans are defined as loans registered that have not been funded or cancelled.

The pipeline is composed of three sections:

  • Summary
    - Showing you the number of loans in your pipeline as well as the total dollar amount. This summary is also broken down by Floating loans and Locked loans.
  • Floating
    - Showing you only the loans that do not have a locked interest rate
  • Locked
    - Showing you only the loans with locked-in interest rates

You can navigate between the floating and locked pipelines by clicking on the appropriate 'tabs' for each.

The pipeline views are default sorted by the loan creation date with the most recent loan being displayed at the top of the pipeline. The pipeline can be re-sorted by clicking on any one of the column headings. Clicking the column heading once will sort in ascending order, while clicking the column heading twice will sort in descending order.

My Actions List has been replaced with a message stating the Loan is in Use. Why?

The "Loan in Use" icon means a Freedom Mortgage employee is working on the file on our processing system. You may not view or make changes while the loan is in use.

How can I be sure that I have the most recent information in my pipeline view?

Any changes to a loan in our processing system are immediately available to the web site. To see the most recent pipeline information click "reload pipeline". Clicking refresh on your browser will not update your pipeline.

Which loans are in the Locked Pipeline View?

Locked and expired loans that have not been funded or cancelled will appear in the locked pipeline.

Which loans are in the Floating Pipeline View?

Loans that have not been locked with Freedom will appear in the floating pipeline. Loans cancelled will appear in the pipeline for 15 days.

What criteria are used to determine when a loan will appear in the Pipeline View?

Loans registered with Freedom Mortgage will appear in the pipeline as long as the following criteria apply.

  • A valid Correspondent Lender, Correspondent Loan Officer, and Branch are entered
  • The loan has not yet been funded
  • The last status on the loan was entered within the last 30 days
  • If the loan was Declined, Cancelled, or Withdrawn it will remain in the pipeline for 15 days.
  • Loans with expired locks will appear in the pipeline for 30 days.

At this time we do not have the ability to retrieve staging loans (meaning it has not been given a 10 digit Freedom loan number).

If your staging loan is missing from your pipeline, please re-upload the file to the website.If you feel your loan meets the above criteria and it is still not showing in your pipeline, please call the number on this page.

Rates and How They Work

How do I access rates for previous dates and times?

Archived rate sheets are available for a set length of time. This time frame varies by region, so please check with your Freedom branch on their policy. To access past rate sheets, click on the drop down menu in the "Access Daily Rates" portlet. To reload the current days rates, click on "Reload Today's Rates."

Loan Lookup

What is the function of the "Loan Look Up" portlet?

This portlet gives you the ability to search for a specific loan using the 10 digit Freedom loan number. Using this feature will ONLY display the loan number entered. To reload the pipeline and view all loans, click on "Reload Pipeline."

Sending a Loan to Freedom Mortgage

What is the function of the "Register Loan" portlet?

The "Register Loan" portlet allows a loan to be manually entered into our system. Using this option, often referred to as the "Short Form Register," automatically assigns the loan a 10 digit Freedom loan number. For this reason, it's not recommended to use this option unless you're certain this loan will be locked, underwritten, and closed with Freedom Mortgage as your lender.

What is the function of the "Upload Loan" portlet?

The "File Upload" option is how your loan is sent to the FreedomWholesale.com website. This feature gives you the ability to upload from your point of sale system, as well as using the DU/DO casefile ID.This option can be accessed one of two ways:
1. After signing in, click on START in the "Upload Loan Portlet"
2. In the Loan Center, click on "File Upload" on the top of the screen

Action List in the Pipeline

What are the action items associated with loans in the pipeline?

Loans that do not yet have a loan number (staging loans) will show the following action items: Register, Edit, Upload, Order DU, Order Credit Only.

Loans that have already been registered (they have a 10 digit Freedom Mortgage loan number) will show these additional actions: Lock, Comments for Broker

The Lock Policy option will replace the Lock option in locked loans.

As the loan progresses through underwriting and the loan statuses change, these options may be locked, meaning they no longer appear on your pipeline. In addition, when a loan is submitted to an underwriter, you will have a new action: Schedule Closing. When your loan reaches an approved status (Conditional Approval or Final Approval) you will have a new action available: View T/C.

What happens when I attempt to lock a loan or execute lock policy changes when rates are not available?

If pricing is not available, a message will appear indicating prices are not yet available. If this happens, please try again once rates are available for the current date/time. If the Access Daily Rates portlet reflects the availability of rates for the current date/time, and a message is still displayed that pricing is not available, please call the broker support line.

What is the "Register" action item?

Allows the user to register the loan on our processing system, in turn assigning a Freedom loan number.

What is the "Edit Loan" action item?

Allows user to update information on loans in the web pipeline.

What is the "File Upload" action item?

Allows user to upload 1003 information from the point of sale system, thereby updating the loan with any changes made.

What is the "Order DU" action item?

This is how files are submitted to FNMA DO/DU. Using this option also offers the ability to pull new credit or reissue existing credit.

What is the "Order Credit Only" action item?

**This option should ONLY be used on loans that are not run through DU/DO**
Allows user to order new credit, or reissue existing credit, without submitting the file to DU/DO.

What is the "Download 1003" action item?

Using this option will convert your loan file to a .fnm format. You can then select the location to save the file, and import the file into your point of sale system.

We do not offer assistance on the import process. For assistance importing the .fnm file to your point of sale system, please contact the support desk for that software.

What is the "Lock Policy" action item?

The "Lock Policy" action item allows users to change the rate, lock period, extend lock and relock loans..

What is the "Lock Loan" action item?

The lock loan action item allows the authorized web user to finalize pricing and lock the loan with Freedom. Edit routines run at both the web level and as the loan is interacting with Freedom’s loan origination system. These edits provide real time support in many areas of the pricing and eligibility rules associated with locking a loan. A lock confirmation form in PDF format is returned to the web immediately after the loan is locked. The lock confirmation form may be printed or can be referenced and printed from the document center at any time after the loan is locked. The document center is located at the bottom of the locked pipeline view.

What is the "View T/C (Terms and Conditions)" action item?

The "View T/C" (Terms and Conditions) action item is a dynamic action item that allows you to view underwriting conditions and comments on loans received by Freedom for underwriting. The "View T/C" action item may dynamically appear and disappear based on the status of the loan.

What is the "Schedule Closing" action item?

This option appears once the loans has been received by an underwriter, and is available until closing documents have been printed. This action gives you the ability to REQUEST a specific closing date on your loan. THIS IS SIMPLY A REQUEST FOR THE DATE, AND DOES NOT CONFIRM YOUR CLOSING.

You must pick a date 48 hours out, excluding holidays and weekends.

Once you have requested the date, you will be contacted by your branch to confirm or agree on an alternate date.

What is the "Comments for Broker" action item?

This option allows you to view comments entered by the underwriter. Comments will open in a pop-up window, therefore it is recommended you disable your pop-up blocker (if applicable). Although this action shows on all loans, this does not mean there are comments on that file.

Managing My Freedom Mortgage Account

What is the function of the "Edit My Profile" portlet?

The Edit My Profile link allows users to edit information in their profile. Editable information may include first name, last name, contact information, password, and security questions and answers.

Please note that ALL of this information must be completed prior to using the "Forgot Password" link in the login portlet.

Resources - Your Contacts

What is the function of the "Related Links" section?

This section contains links to external sites we find helpful in the industry.

What is the function of the "Contacts Us" page?

The "Your Contacts" page provides state specific Account Manager and Client Relations Representative information for the state selected.

Broker Enrollment - About Freedom

What is the function of the "About Freedom" content display portlet?

The "About Freedom" portlet provides users with basic information about Freedom Mortgage and the Freedom Mortgage Correspondent Division.

What is the function of the "Broker Enrollment" content display portlet?

This portlet contains an application package required by the branches for all approved and potential brokers. This package should be completed and returned to the Freedom branch which services your location. Use the "Your Contacts" portlet to determine the correct Account Executive for your state.

Wholesale Guide

What is the "FAQs/Help" section?

The FAQs/Help portlet provides users with answers to frequently asked questions as well as well an industry glossary. FAQs/Help is grouped around special functions such as pipeline features, registering loans, loan action items, and rate information.

What is the "What's New" portlet?

Prior to signing in, the "What's New" portlet provides a list of news items, such as recently updated or other important information Freedom wants to pass on. If we plan on taking the website down for maintenance, a message will be posted in this section.

The content of this portlet will change once signed in. The training schedule, and a link to our recorded training session, will be displayed upon logging in. As before, if we plan on taking the site down for maintenance a broadcast message will appear in this section as well.

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Misc

1098 Interest Reported

Homeowners may subtract interest expense on a home loan from their income before computing income tax. Form 1098 is provided to the borrower by financial institutions and reports the amount of loan interest paid for the tax year in question.

15-year Rate

Desired interest rate for a 15-year mortgage.

30-Year Fixed (AUS Jumbo 30-year fixed, 30-day Lock)

A 30-year fixed mortgage has a term of 30 years with a fixed interest rate (as opposed to an adjustable interest rate). An "AUS Jumbo" mortgage is typically processed more quickly than a standard mortgage due to the Automated Underwriting System (AUS), and may allow you to qualify for a larger investment.

30-Year Fixed (Conventional Conforming 30-Year Fixed, 30-day Lock)

A 30-year fixed mortgage has a term of 30 years with a fixed interest rate (as opposed to an adjustable interest rate). A "conventional" mortgage is a mortgage that is not guaranteed or insured by the Federal government, and is not a part of a special mortgage programs offered by the government. A "conforming" mortgage has highly competitive interest rates and slightly stricter qualifying criteria.

30-year Rate

Desired interest rate for a 30-year mortgage.

3/1 ARM (LIBOR Alterna 3/1 ARM 30-day Lock)

A 3/1 ARM (adjustable rate mortgage) offers a low, fixed-interest rate for the first three years, then annual adjustments for the remainder of the loan. There are caps on how much the interest rate can go up each year after the initial three years to help protect against rapid interest rate increases. LIBOR alterna loans offer interest rates that are generally lower than other adjustable rate mortgages.

5/1 ARM (LIBOR Alterna 5/1 ARM, 30-day Lock)

A 5/1 ARM (adjustable rate mortgage) offers a low, fixed-interest rate for the first five years, then annual adjustments for the remainder of the loan. There are caps on how much the interest rate can go up each year after the initial five years to help protect against rapid interest rate increases. LIBOR alterna loans offer interest rates that are generally lower than other adjustable rate mortgages.

5/1 ARM (Libor Alterna Jumbo 5/1 ARM, 30-day lock)

A 5/1 ARM (adjustable rate mortgage) offers a low, fixed-interest rate for the first five years, then annual adjustments for the remainder of the loan. There are caps on how much the interest rate can go up each year after the initial five years to help protect against rapid interest rate increases. LIBOR alterna loans offer interest rates that are generally lower than other adjustable rate mortgages. A Jumbo mortgage may allow you to qualify for a larger investment.

A

Accelerated Total Interest

Interest amount on a mortgage paid with accelerated payments.

Accelerated Weekly and Bi-weekly Payments

Accelerated weekly and accelerated Bi-weekly payment options are calculated by taking a monthly payment schedule and assuming there are only four weeks in a month. We calculate an accelerated Bi-weekly payment, for example, by taking your normal monthly payment and dividing it by two. Since you would pay 26 Bi-weekly payments, by the end of a year you would have paid the equivalent of one extra monthly payment. This additional amount accelerates your loan payoff by going directly against your loan's principal. The effect can save you thousands of dollars in interest and take years off of your mortgage.

The accelerated weekly payment is calculated by dividing your monthly payment by four. You would then make 52 weekly payments. Just like the accelerated Bi-weekly payments, you are in effect paying an additional monthly payment each year.

Account Holder

The owner of an asset, or the person whose name appears first on the asset statements.

Account Number

Account number for an asset or liability held by a borrower or co-borrower.

Adjustable Rate Mortgage (ARM)

A loan that allows the interest rate to rise or fall based on a schedule set by you and the lender. You initially enjoy a lower fixed rate for a set amount of time, then the loan adjusts up or down, based on an ongoing economic index plus an established margin. ARMs have different frequencies for these adjustments. Some ARMs have a cap, so the rate cannot go above a specified amount year-to-year and over the life of the loan. The primary advantage of an ARM is that the initial rate is typically lower than it would be on a fixed-rate loan, allowing you to buy real estate that you may not be able to afford otherwise. On the downside, once the fixed-rate period of the ARM expires, your payments could potentially go up. There's also a possibility that they could go down.

Amortization

The process of repaying a loan in equal installments of principal and interest, instead of interest-only payments.

Amount Now Due

The payment currently due on an existing loan or mortgage.

Annual Income

Your annual income before taxes. For married couples, this is your total combined annual income before taxes.

Annual Percentage Rate (APR)

The charge for using an amount of money for a specified time expressed as an annual rate. The APR is calculated for the term of the loan and includes the interest rate, points, and certain other costs.

Appraisal

An estimate of the value of property, made by a qualified professional called an appraiser. This term also refers to the process to obtain the estimate.

Appraised Value

An opinion of a property's fair market value, based on an appraiser's knowledge, experience and analysis of the property.

ARM Adjustment Date

This is the date that the interest rate changes.

Asset Type

The type of asset owned by a borrower or co-borrower. Some examples of assets include checking accounts, stocks, bonds, retirement funds and mutual funds.

Asset Value

The current dollar value of an asset held by a borrower or co-borrower.

B

Balance

Balance refers to the amount remaining to be paid on a liability, debt or loan.

Balloon Mortgage

A mortgage that has set payments of principal and interest that do not fully pay off the loan. The balance of the mortgage is due at the end of regular payments and is usually paid in a lump sum at a specified date.

Beginning Balance

The balance of your loan at the beginning of the prior year, before any payments were made during the course of the year.

Bonuses

Total monthly bonus amount earned by a borrower or co-borrower.

Building Status

The condition, or status, of the property to be financed.

Buy-down Funds

A sum of money paid to the lender at closing to temporarily reduce the borrower's interest rate.

C

Cash on Hand

Cash you have for the down payment and all closing costs.

Closing Date

The date on which all the financial details associated with a mortgage are finalized.

Commissions

Total monthly commission amount earned by a borrower or co-borrower.

Corporate Advance / Fees

Disbursement for servicing-related expenses (not escrow expenses) paid with servicer funds rather than escrow funds, to be recovered from the borrower. May include foreclosure expenses, attorney fees, bankruptcy fees, insurance and other expenses.

Credit Card Payments

Total monthly minimum payments for your credit cards.

Credit Report

A document completed by a credit-reporting agency that provides information about the buyer's credit cards, previous mortgage history, bank loans and public records dealing with financial matters.

Current Balance

The remaining amount owed on your mortgage.

D

Disposition Status

Defines how a property will be used by a borrower or co-borrower: as a residence, pending sale or retained for rental.

Dividends/Interest

Total monthly dividend and interest amount earned by a borrower or co-borrower.

E

Ending Balance

The balance of your loan at the end of the prior year, after all payments were made during the course of the year.

Escrow Account

This is an account held by the lender. The borrower pays monthly installments to this account for property taxes, mortgage insurance, hazard insurance and special assessments. When the annual payments are due for those items, the lender pays them using this money from the escrow account.

Escrow Balance

The balance in your escrow account.

F

FHA 203k Rehabilitation Loans

The section 203k program is HUD's primary program for the rehabilitation and repair of owner-occupied properties. It is an important tool for community and neighborhood revitalization and for expanding homeownership opportunities.

The FHA 203k rehabilitation loan program assists borrowers who wish to purchase and fix up homes. By obtaining a 203k rehabilitation loan, you are obligated to make a minimum amount of improvements to the home. There are rules and restrictions that apply to such improvements and you should familiarize yourself with the entire process before you decide it's right for you.

FHA Adjustable Rate Mortgage (ARM)

FHA stands for the Federal Housing Administration, which is an agency of the U.S. Department of Housing and Urban Development (HUD). The FHA does not lend money or construct housing, but it does insure residential mortgage loans made by private lenders. This allows borrowers with complicated credit histories or no credit histories become homeowners.

Adjustable-rate mortgages (ARMs) have interest rates that go up or down with the economy, which could change your payment amounts from year to year. ARMs help lenders cover the cost of lending money in a changing economy by transferring a portion of the interest rate risk to you. In exchange for sharing the risk, you’re offered an initial interest rate that’s substantially lower than the interest on fixed-rate loans and stays consistent for the first 1, 3 or 5 years.

Once your interest rate begins to adjust (after the initial 1, 3 or 5 years) it can’t go up more than 1% per year, or more than 5% over the life of the loan.

An FHA adjustable rate mortgage has several advantages:

  • 3% down payment
  • Co-borrowers are permitted
  • Eligible properties include 1-4 unit owner-occupied properties, manufactured houses, FHA approved condos, planned unit developments and townhouses
  • Cash-out available
  • No upper or lower limits on income

If you must work within a fixed budget, are trying to establish credit, or want to use gifts, loans or grants to make your down payment, and FHA loan may be right for you.

FHA Fixed Rate Mortgage

FHA stands for the Federal Housing Administration, which is an agency of the U.S. Department of Housing and Urban Development (HUD). The FHA does not lend money or construct housing, but it does insure residential mortgage loans made by private lenders. This allows borrowers with complicated credit histories or no credit histories become homeowners.

A fixed-rate loan has a fixed interest rate, a fixed monthly payment, and is fully amortizing'that is, you pay off the loan completely'over a given number of years (for example, 15 or 30 years). A portion of each monthly payment covers the interest on the loan. Another portion reduces the principal balance. Regular payments systematically whittle down the amount you owe until the loan is paid in full.

An FHA fixed rate mortgage has several advantages:

  • Defined list of allowable closing costs, which can save you hundreds of dollars
  • Allows the down payment to be a gift from a family member, or from a non-profit or government agency
  • Lower down payment options
  • More favorable credit terms

If you must work within a fixed budget, are trying to establish credit, or want to use gifts, loans or grants to make your down payment, and FHA loan may be right for you.

Federal Housing Administration (FHA)

A federal agency within the U.S. Department of Housing and Urban Development (HUD). Using loan insurance programs to insure mortgages for lenders, the Federal Housing Administration (FHA) stimulates the availability of housing for low- and moderate-income families.

Fees/Late Charges

An additional one-time fee for not paying a loan payment by the payment due date.

First Mortgage (P/I)

A borrower's or co-borrower's monthly payment for a first mortgage.

First Payment Due Date

The date that your first loan payment was due.

Fixed Rate Mortgage

The type of loan in which the interest rate will not change for the entire term of the loan.

Fixed/ARM Hybrid

For some buyers it is difficult to feel completely satisfied with either a fixed rate or adjustable rate mortgage. That's why Freedom offers a mortgage with the advantages of both: the fixed / ARM hybrid, also know as the fixed period ARM.

With a fixed / ARM hybrid, you start out with a fixed interest rate for a specific amount of time, normally 3, 5 or 7 years. After the specified fixed-rate period, the loan converts to an ARM. One of the biggest advantages to a hybrid loan is the low interest rate during the fixed-rate period, which can be considerably lower than a 30-year fixed rate loan.

A fixed / ARM hybrid is ideal for borrowers who are just starting out in a career that has growth potential, for borrowers who foresee their budget becoming more stable several years down the road and for borrowers who plan to move after a few years.

Fixed/ARM Hybrid, Interest First (Also referred to as "Interest Only")

A Fixed / ARM Hybrid, Interest First Mortgage is very similar to a fixed / ARM hybrid with one exception: you pay only the interest on the loan for a fixed term. That means you are not required to begin paying on the principal until the initial term is over. However, if suddenly your monthly income increases you may exercise the option to pay on the interest and the principal.

The interest first option reduces your monthly payments during the initial term, and may increase your purchasing power. With an interest first loan, you may also be eligible for considerable tax deductions.

Borrowers choose an interest first mortgage if their monthly income is less predictable, for instance those who are self employed. The interest first option is also ideal for borrowers who are just starting out in a career that has growth potential, for borrowers who foresee their budget becoming more stable several years down the road and for borrowers who plan to move or refinance in the short-term.

H

Hazard Insurance

A broad form of casualty insurance coverage for real estate that includes protection against loss from fire, certain natural causes, vandalism, and malicious mischief. It's also known as homeowner's insurance.

Hazard Insurance Paid

The amount paid toward your hazard insurance, also known as homeowner's insurance.

Home Insurance Rate

Your homeowner's insurance rate. 0.5% for a $100,000 home equals $500 per year for homeowner's insurance.

HomeTogether Public Safety Program

The HomeTogetherSM Public Safety Program is a no-cost homebuying program offered exclusively to members of public safety. It gives you access to education programs about the homebuying and closing process and special mortgage programs to help you make the right homebuying decision. You can also take advantage of substantial savings in loan costs through HomeTogetherSM.

Homeowner Association Dues

Monthly homeowner association dues paid by a borrower or co-borrower.

I

Income Tax Rate

Your current federal income tax rate.

Institution Name

The name of an institution that manages an asset or liability held by a borrower or co-borrower.

Interest

  1. A charge for borrowing money. It is usually expressed on an annual rate or as a percentage of the money still owed. For example, the interest rate might be 10%. If a person borrowed $10,000 and agrees to pay it in full at the end of one year, the interest will be $1,000.
  2. A right, share or title in property.
  3. A general term meaning partial or total right to a property. An interest in real estate might be a right, such as an easement, a lease or partial or full ownership.

Interest Rate

The charge for using an amount of money for a specified time; usually expressed as an annual rate.

J

Jumbo Loans

A jumbo loan is defined as a loan amount larger than the current Fannie Mae loan limits. When a loan exceeds this amount, the loan is subject to special pricing, rates and fees. Freedom offers jumbo loans to qualified applicants.

Jumbo loan options are varied, from fixed to adjustable rates, from 15 or 30-year loan terms and everything in between. The types of jumbo loans available are almost as varied as conventional loans.

L

LIBOR Interest-Only Alterna Loan

LIBOR stands for London InterBank Offering Rates. LIBOR alterna loans offer interest rates that are generally lower than other adjustable rate mortgages. That means you'll save money from the start and, depending on the economy, could continue to save money throughout the life of the loan.

LIBOR alterna loans are available in several versions:

  • A 3 / 1 adjustable rate mortgage, which offers a low fixed interest rate for the first three years then adjusts annually for the remainder of the loan. The rate will never go up more than 2% a year and no more than 6% over the life of the loan.
  • A 5 / 1 adjustable rate mortgage with a low fixed interest rate for the first five years, then annual adjustments for the remainder of the loan. The rate cannot go up more than 5% the first year and no more than 2% annually after that with a 5% lifetime interest rate cap.

There is a maximum amount you can borrow with a LIBOR alterna loan, but if you need more there are jumbo versions available as well.

Last Insurance Disbursement

The date that the hazard insurance payment was disbursed from your escrow account.

Last Insurance Disbursement Amount

The amount that was disbursed from your escrow account to pay for your home's hazard insurance.

Last Payment Amount

The amount of the last payment received on the Payment Received date.

Last Tax Disbursement

The date that the tax payment was disbursed from your escrow account.

Last Tax Disbursement Amount

The amount that was disbursed from your escrow account to pay for your property taxes.

Liability Holder

The name of the person responsible for a liability account. The owner may be a borrower, a co-borrower or it may be held jointly.

Liability Type

The type of liability owned by a borrower or co-borrower. Some examples of liabilities include other mortgages, auto loans, alimony and child support.

Liquid Assets

Assets that can be used for a down payment and closing costs. These assets can be converted to cash or cash equivalent.

  • Checking and savings accounts
  • Money Market accounts
  • Exchange-traded stocks and bonds
  • Equity from a pending sale of real estate
  • Gifts (not to be paid back)

Loan Amount

The original amount borrowed and agreed upon on the closing date.

Loan Balance

The remainder of your mortgage that will be refinanced.

Loan Origination Rate

This is the percentage of the new mortgage that is paid to the lender as the loan origination fee. For most lenders, this fee is typically 1% of the loan balance.

Loan Term

The number of years (or months) until a loan's maturity, or end.

Loan Type

Freedom Mortgage Corporation offers a variety of home loan programs. Some examples include fixed-rate mortgages, adjustable-rate mortgages (ARM), My Community Mortgages, Balloon Mortgages and more.

Low and No Down Payment Loan

For some borrowers, a monthly mortgage payment is manageable but coming up with the cash for all the up-front costs is difficult. For these types of borrowers there are low and no down payment mortgage options.

If you have a very good credit history but lack substantial financial savings, a low or no down payment mortgage may be right for you. This option may also be right for you if you have a limited income.

Typically, with a low or no down payment mortgage you are required to borrow a larger principal amount, have private mortgage insurance and may require a higher interest rate.

M

Marginal Tax Rate

This is the tax rate you pay when you combine your federal, state, and local income taxes and federal payroll and self-employment taxes. It's used to calculate your potential income tax savings by deducting your mortgage interest.

Market Value

An estimate of the highest price a property would sell for within a reasonable period of time, on the open market under normal conditions, and between a willing, ready, and able buyer and seller.

Maturity Date

The projected date upon which a loan will be mature (or paid in full) according to the loan's term.

Monthly Payment

Monthly principal and interest payment (PI). The monthly payment is what you can expect to pay each month toward your loan.

Monthly Total Interest

Amount of your monthly mortgage payment that goes toward interest.

Monthly car payment(s)

Total monthly payment for your car loan(s).

Months Remaining

The number of months remaining to pay off the balance of a liability account.

Mortgage Amount

Original or expected balance for your mortgage.

Mortgage Insurance

On a conventional loan, if you make less than a 20% down payment, you may be required to get private mortgage insurance (PMI), which is added each month to your principal and interest payment. Or, if you obtain an FHA loan, you will be required to pay a one-time upfront mortgage insurance premium (MIP) and, if your down payment is less than 15%, you'll make a monthly mortgage insurance payment as well. If you buy a condominium, the upfront MIP does not apply; however, you will still pay monthly mortgage insurance.

Mortgage Payment

The principal and interest payment on a mortgage loan.

My Community Mortgage (MCM)

The My Community Mortgage was designed to help borrowers who live in specific areas, make less than the average area income (HUD median income), and / or work in specific public service fields. If you are a teacher, a police officer, a health care professional, or work in another public service field, you may be eligible for this special mortgage program.

N

Net Rental Income

Monthly net rental income earned by a borrower or co-borrower less rental expenses.

Next Payment Due Date

The date on which your next loan payment is due.

O

Optional Products

Additional components included in your loan payment that are optional (not principal, interest, taxes or insurance which are required components of a monthly mortgage payment) such as supplemental mortgage life insurance or disability insurance.

Original Interest Rate

During the refinancing process, you may receive an interest rate on your new loan that is different from your original interest rate. Your original interest rate is the interest rate on your original, or current, mortgage loan.

Original Loan Amount

Original amount of your mortgage.

Origination Fee

The fee your lender may charge your to cover the cost of issuing a loan. The fee is usually computed as a percentage (for example, 1%) of the mortgage loan.

Other

"Other" refers to any miscellaneous portions of your mortgage payment not already mentioned, such as additional insurance.

Other Closing Costs

Estimate of all other closing costs for this loan. This should include filing fees, appraiser fees and any other miscellaneous fees paid.

Other Expenses

"Other" refers to any miscellaneous monthly housing expenses not already mentioned.

Other Financing (P/I)

Other monthly financing expenses paid by a borrower or co-borrower.

Other Income

Alimony, child support, or separate maintenance income need not be revealed if the Borrower or Co-borrower does not choose to have it considered in repaying this loan.

Other Loan Payments

Any other installment loan payments, such as student loans or unsecured loans.

Overtime

Monthly overtime amount earned by a borrower or co-borrower.

P

Payment Received

The amount of the last payment received on the Payment Received Date.

Payment Received Date

The date on which your last payment was received.

Payment Type

The type of payment used for a monthly mortgage payment.

Points

A fee charged by the lender. Each point equals 1% of the loan amount; for example, two points on a $100,000 mortgage is $2,000.

Points Paid

This is the number of points paid to the lender.

Position/Type of Business

The job or position title of a borrower or co-borrower.

Prepayment Amount

Amount that will be prepaid on your mortgage. This amount will be applied to the mortgage principal balance, based on the prepayment type.

Prepayment Type

The frequency of prepayment. The options are: none, monthly, yearly or one-time payment.

Principal

The portion of a loan payment that is used to reduce the loan balance.

Property Owner

The responsible person for a property. The owner may be a borrower, co-borrower or it may be held jointly.

Property Tax Rate

Your property tax rate. 1% for a $100,000 home equals $1,000 per year in property taxes.

Property Type

The type of property owned by a borrower or co-borrower. Some examples of property types include single family, townhouse, mobile home and farm.

Purchase Price

The price of the home you wish to purchase. This is the actual price you'll pay, not including any closing costs.

R

Real Estate Taxes Paid

The amount paid toward your real estate taxes.

Refinancing

Freedom offers several loan programs to help make refinancing your home easier. There are many reasons you may have for wanting to refinance:

  • Lower your monthly mortgage payment
  • Get cash out of the equity in your home
  • Switch from an adjustable to a fixed rate loan
  • Consolidate your debts
  • Consolidate your first and second mortgages
  • Increase your cash flow
  • Save thousands of dollars in interest
  • Save even more through tax deductible interest

Take advantage of these Freedom refinancing opportunities:

  • FHA, VA and conventional loans
  • Manufactured home loans
  • Fixed and adjustable rates
  • Free pre-qualification
  • Option of applying over the phone, through the mail or online
  • Professional, local service

Rent

Monthly rent paid by a borrower or co-borrower.

Rental Income

The monthly rental income received from a property owned by a borrower or co-borrower.

S

Salary

Monthly salary earned by a borrower or co-borrower.

Savings

Total amount of interest you'll save by paying your mortgage off early.

Second Mortgage or Home Equity Loan

Your home's equity is defined as the difference between your home's current market value and the total amount you owe on your home loan. It's a simple formula:

Your home's market value - the amount you owe = your home's equity

By taking out a home equity loan, also known as a second mortgage, you are borrowing money against the equity you have built in your home. Lenders are willing to make such a loan because your home equity represents a valuable asset equal to the amount you are borrowing.

Some of the reasons homeowners may want to take out a home equity loan include:

  • Increased cash flow
  • Consolidate debts
  • Find cash to remodel, finance a car or invest
  • Take advantage of potentially tax-deductible interest

Self Employed

If you own 25% or more of the company you work for, you're considered self employed for loan purposes. Self Employed Borrower(s) may be required to provide additional documentation such as tax returns and financial statements.

"Start With" Payment

This is the payment number that your prepayments will begin with. For a one-time payment, this is the payment number that the single prepayment will be included in. All prepayments of principal are assumed to be received by your lender in time to be included in the following month's interest calculation.

Stated Income and Stated Asset Program

The Stated Income / Stated Asset program is designed for borrowers who do not have traditional documentation to verify their assets and monthly income. Just because you are self-employed doesn't mean you can't qualify for an affordable loan.

If you have a good credit history but don't have all the traditional income documentation, the Stated Income / Stated Asset program may be right for you.

T

Taxes and Insurance

The total amount of property taxes and insurance paid on a property owned by a borrower or co-borrower.

Tax Lien

A lien on a property by local, state, or federal government for the amount of due and unpaid taxes.

Term in Years

The number of years over which you will repay this loan. The most common mortgage terms are 15 years and 30 years.

Total Amount of Mortgages / Liens Outstanding

The total dollar amount remaining on a property mortgage.

Total Deposits

Money given by a buyer when making a formal offer to bind the sale. Also called "earnest money." It is also the term used for money placed into your account.

Total Interest

Total of all interest paid over the full term of the mortgage. This total interest amount assumes there are no prepayments of principal.

Total Monthly Payment

Monthly principal and interest payment, plus escrow payments for property taxes, mortgage insurance, hazard insurance and special assessments.

Total Payments

Total of all monthly payments over the full term of the mortgage. This total payment amount assumes there are no prepayments of principal.

U

Underwriting

The process of approving or denying your loan based on an evaluation of the property and your creditworthiness and ability to repay the loan.

V

VA Adjustable Rate Loans

VA stands for Veteran Administration. Freedom offers VA loans to veterans and their spouses to help make homeownership possible for those who have served our country. In order to qualify, you must meet one of the following criteria:

  • Military veteran
  • Active duty personnel
  • Non-married spouse of a deceased veteran
  • Member of selected Reserves or National Guard

Adjustable-rate mortgages (ARMs) have interest rates that go up or down with the economy, which could change your payment amounts from year to year. ARMs help lenders cover the cost of lending money in a changing economy by transferring a portion of the interest rate risk to you. In exchange for sharing the risk, you're offered an initial interest rate that's substantially lower than the interest on fixed-rate loans and stays consistent for the first 1, 3 or 5 years.

Most VA loans require no down payment. You may pay closing costs with your own money, gift money or the seller may pay 100% of the costs.

There are restrictions on the types of properties that are eligible for VA loan purchase, so check with your Freedom loan professional if you have any questions.

VA Fixed Rate Loans

VA stands for Veteran Administration. Freedom offers VA loans to veterans and their spouses to help make homeownership possible for those who have served our country. In order to qualify, you must meet one of the following criteria:

  • Military veteran
  • Active duty personnel
  • Non-married spouse of a deceased veteran
  • Member of selected Reserves or National Guard

A fixed-rate loan has a fixed interest rate, a fixed monthly payment, and is fully amortizing'that is, you pay off the loan completely'over a given number of years (for example, 15 or 30 years). A portion of each monthly payment covers the interest on the loan. Another portion reduces the principal balance. Regular payments systematically whittle down the amount you owe until the loan is paid in full. Fixed rate mortgages are the most popular mortgages for homeowners, typically 15 or 30-year fixed rate mortgages.

Most VA loans require no down payment. You may pay closing costs with your own money, gift money or the seller may pay 100% of the costs.

There are restrictions on the types of properties that are eligible for VA loan purchase, so check with your Freedom loan professional if you have any questions.

Y

Years Remaining

Number of years remaining on your current mortgage.

Years of Schooling

The number of years of school the borrower has attended. In general, enter 12 years if you have a high school diploma and add any additional years for associates, bachelors, masters or doctorate degrees. For example, if you have a bachelors degree, enter the number 16.

Training schedule

We offer training sessions on the use and functionality of FreedomWholesale.com. These sessions take approximately 60 minutes depending on the number of attendees and question and answer period.

Live training sessions

  • Wednesday May 14th, 2.30pm EST
  • Wednesday May 28th, 2.30pm EST
  • Thursday June 12th, 2:30pm EST
  • Thursday June 26th, 2:30pm EST
  • Training sessions can be accessed here. Click 'Join Now' located next to 'Freedom Wholesale Broker Training'.
  • When prompted, enter your name, email address.
  • Password: Please Contact your Account Executive
  • Dial in instructions will be provided upon successful login.

Recorded training sessions

Freedom Warehouse Line

View the advantages of a Freedom Warehouse line here.

We are pleased to offer you a list of outstanding Appraisal Management Companies (AMC) available at Freedom Mortgage.
See our approved list below:

Dart Appraisal

Website: https://dartappraisal.com/freedom

Download pricing

 


Valuation Partners

Website: https://www.valuationpartners.com/freedommortgage

Download pricing

 


Class Appraisal

Website: http://www.classappraisal.com/about-us/freedom-mortgage

Download pricing

 


SingleSource

Website: https://www.propertysmart.us/cweb/employee/signup.aspx

Download pricing

 


Assurant Valuations

Website: https://www.streetlinks.com/BrokerSignup

Download pricing

 


Coester VMS

Website: https://www.coestervms.com/resource-center/wholesale-mortgage-lenders/freedom-wholesale-appraisal-ordering-process-coestervms

Download pricing