Frequently Asked Questions

Why Choose Langdon Mortgage Company, Inc.?
A number of financial institutions offer home mortgages, but many only operate in the limited capacity of a Mortgage Broker and are unable to fund loans directly. Most Banks and Credit Unions have small, in-house loan selections and lack the flexibility of a broad menu of programs and rates. Langdon Mortgage, however, operates as both a Correspondent Lender and a Mortgage Broker. As a Correspondent Lender, we can fund loans in-house and thus close faster and have greater control. As a multi-source Mortgage Broker, we are also able to tap into the larger national mortgage market. This expanded access to loan programs gives us greater flexibility to truly find the best rate and program for every client. LMC is FHA and VA approved and specializes in residential purchases, condominiums and commercial lending. The latest in Automated Underwriting coupled with our state-of-the-art Internet capabilities enables LMC to provide unprecedented convenience and efficiency to our client's. For more information about Langdon Mortgage Company, Inc. and the services we provide, visit Home and Meet Our Team.

Is there an application fee?
NO! LMC does not charge a fee to Pre-Qualify or Apply!

What is PMI? How can I eliminate PMI?
PMI (Private Mortgage Insurance) is normally required when you buy a house with less than 20% down. Mortgage insurance is a type of guarantee that helps protect lenders against the costs of foreclosure. The insurance protection is provided by private mortgage insurance companies. It enables lenders to accept lower down payments than they normally would receive from borrowers. In effect, the mortgage insurance provides the equity a higher down payment would provide to cover a lenders losses in the unfortunate event of foreclosure. Without mortgage insurance, you might not be able to buy a home unless you can make a 20% down payment. Your PMI premium is normally added you your monthly mortgage payment.

The decision on when to cancel private insurance coverage does not depend solely on the degree of your equity in your home. To see if you are eligible to cancel PMI, it is best to contact a LMC Mortgage Consultant directly. In most cases, an appraisal will be required to determine the value of your property.

What is a mortgage prepayment penalty? Why would I consider a mortgage that has one?
A prepayment penalty on a mortgage allows the lender to charge a borrower additional interest, typically six months' worth, when a mortgage is repaid during the penalty period. (The penalty period is usually the first three to five years.) If a mortgage has a prepayment penalty, it must be clearly stated in the loan documents. The advantage of taking a mortgage with a prepayment penalty is that is could have a lower interest rate.

Will an appraisal of my property be required to approve a new loan?
Yes. Your property is the collateral for the mortgage, so an appraisal is almost always required. You are always entitled to receive a copy of the appraisal.

How much homeowner's insurance coverage will I need to close the new mortgage?
Lenders often recommend or require a "guaranteed-replacement-cost" policy. This type of policy will generally pay out 20-50% more than the face value of your policy. If there is severe damage - from a fire, for example – you can use this money to have your home rebuilt. A replacement-cost policy will usually adjust each year to the rising costs of construction in your area. Unfortunately, even guaranteed-replacement-cost policies do not always cover new construction expenses. For this reason, some insurers may go even further to offer an "endorsement" that will pay for an upgrading cost. It's a good idea to consider an endorsement on your replacement-cost policy.