Frequently Asked Questions

Frequently asked questions about Extraco mortgage products and services.

Q. Will the lowest interest rate always be the best deal?
A. While rate is important, you should look at the overall cost of your loan. This includes the annual percentage rate, loan fees and discount and origination points. Some lenders add origination points into their quoted points while other lenders add an origination point in addition to their quoted points.

The cost of the mortgage, however, cannot be your only criterion. You should also consider the financial strength of the lender; asking family and friends for referrals and interviewing prospective mortgage companies; whether the loan officer is committed to your best interest and will deliver what he/she promises; that the absolute lowest quoted rate may not be the best company for your mortgage business.

Q. What documents must I provide when applying for a loan?
A. Be prepared to provide:

• Verification of income, including your pay stub and tax returns for the previous two years.
• Bank account numbers and details about your long-term debt, including credit cards, auto loans, child support, etc.
• If you are self-employed, you may need to provide financial statements for your business. Lenders want detailed information. For example, the origin of your down payment will be queried.

NOTE: Be sure to inform your lender of any changes in your employment, salary, debt or marital status between the time you submit your application and the time you close your loan.

Q. Does it make sense to make additional payments to my mortgage or should I invest that money elsewhere?
A. Pre-paying your mortgage shortens the term of your loan which will save you thousands of dollars in interest. Pre-paying your mortgage is an easy, risk-free investment. Even if you round your monthly payment up to the nearest $100, it will save you money over the long term. If your mortgage rate is 8.5% per year, that's what you'll earn on your pre-payment. Compare that return with what you'd earn in other comparably safe investments, such as a Certificate of Deposit (CD). Also, weigh the advantages of pre-paying your mortgage against paying off debt. If your credit card interest rate is 17%, it makes more sense to pay off this higher-interest debt rather than to pre-pay your 8.5% mortgage.

Q. Will Extraco share or sell my information?
A. Extraco does not sell your information to third parties. Your information is shared with other Extraco Affiliates only, unless a written request is made by you instructing us otherwise.

Q. Do I have to enter my Social Security Number when applying for an online loan?
A. Although our online system is secure, you are not required to enter your Social Security Number. If you feel uncomfortable entering this information, you may enter a number that is obviously false (such as 111-11-1111). We will require your actual Social Security Number when you call to put your loan in process.

Q. If I haven't found a property, can I still apply?
A. Yes. Please feel free to complete the online application leaving the subject property fields blank.

Q. Does completing an online application automatically lock in a rate?
A. No. Once you put your loan application in process, you can call your mortgage lender and lock a rate between 10 a.m. and 5 p.m. CST, Monday through Friday.

Q. What is PMI (Private Mortgage Insurance)?
A. PMI or Private Mortgage Insurance is normally required when you buy a house with less than a 20% down payment. This insurance protection is provided by private mortgage-insurance companies. The cost of PMI increases as your down payment decreases. Mortgage insurance is a type of guarantee that helps protect lenders against the costs of foreclosure.

Q. When will I receive my IRS Form 1098 Mortgage Interest Statement for interest and real estate taxes paid during the past year?
A. Your IRS Form 1098 Mortgage Interest Statement for use in filing your Annual IRS Tax Statement will be mailed during the last week of January. This form will be included in your new coupon book. If your loan payment is set up for automatic draft from your bank, you will receive a coupon book that includes the IRS Form 1098 and other information, but no coupons. If your loan has been paid in full or the servicing transferred to another lender, you will receive an IRS Form 1098 by separate mailing.

Q. When will I receive my coupon book for my new loan?
A. After you close the loan, you should receive a coupon book within 30 days.

Q. I do not have any payment coupons for making my monthly payment. When will I receive additional coupons?
A. New coupon books are mailed to Extraco Mortgage customers each year at the end of January with coupons beginning with the March payment. This coincides with our annual escrow analysis of loans to reflect any payment change beginning with the March payment.

Q. If I don't have a coupon, do I still have to make my payment?
A. Your mortgage payment should be made on or before the Due Date as specified under the terms of your mortgage. Usually this payment is due on the first day of the month. If you lose your coupon book or do not have a coupon available for some other reason, you may send your payment without the coupon. Be sure to write your loan number on the memo portion of your check so that we may credit your account correctly.

Q. Why is there only one Social Security Number on my annual loan statement?
A. The IRS Form 1098 is reported under the Social Security Number of the primary borrower. It is the borrower's responsibility to make sure the tax information is filed by the appropriate parties.

Q. My loan was transferred to another lending company. Why doesn't my Annual Loan Statement show the total interest and real estate taxes paid during the year?
A. The interest and real estate taxes shown on your annual loan statement issued by Extraco Mortgage is for the time period your loan was serviced by Extraco Mortgage. Any additional interest or taxes paid while your loan was serviced by another lender should be reported by them. You must contact them for this information.