Frequently Asked Questions

Getting Started in the Mortgage Industry

To become a mortgage lender, register your business, meet state rules, get a lender license, and sign up with NMLS. You’ll need a business plan, background check, and capital.

Take a 20-hour NMLS course, pass the SAFE test, and apply for your license. Look for entry-level jobs that offer training.

Take the NMLS course, pass the SAFE exam, get licensed in your state, and apply to a lender or broker.

Register your business, get licensed through your state and NMLS, and follow all legal and financial rules. You’ll need startup money and staff.

Form a legal entity, apply for a lender license, get NMLS approval, secure funding, and hire licensed officers.

Start by forming a company, apply for a lender license, register with NMLS, and meet state requirements.

Apply through your state, meet education and experience rules, pass a background check, and register with NMLS.

Complete NMLS training, pass the SAFE exam, and apply for a license with your state.


Getting Licensed by State

Complete an NMLS course, pass the SAFE exam, and apply for a broker license with California’s DRE.

Complete NMLS training, pass the SAFE exam, and apply for a license with the Florida Office of Financial Regulation.

Take the NMLS course, pass the SAFE exam, and apply for a license through the Texas SML.

Apply for a broker license, set up your business, get NMLS registration, and hire or train loan officers.

Register a business, get a broker license, follow state rules, and hire licensed originators.


Mortgage Insurance

You can remove FHA mortgage insurance by refinancing to a conventional loan with 20% equity. Some FHA loans cancel MIP after 11 years.

Yes, you can sell your house with a mortgage. At closing, the mortgage is paid off using the buyer’s funds. You get any remaining profit.

Your mortgage is paid off from the sale money at closing.


Reverse Mortgages

In Florida, a reverse mortgage lets seniors 62+ borrow against home equity. The loan is repaid when they move, sell, or pass away.

Getting a reverse mortgage usually takes 30 to 45 days, including counseling, appraisal, and approval.

 

Poor home condition, unpaid taxes, or not living in the home can disqualify you from a reverse mortgage.

The loan becomes due. Your heirs can repay it or sell the home. If not, the lender takes the house.

It’s the lowest rate used to figure how much you can borrow. A lower floor rate means more money to you.

Mortgage Terms & Types

You can have up to 10 mortgages if you meet lender rules. After that, special loans may be needed. Good credit, income, and cash are required for each loan.

Usually, up to 4 people can be on a mortgage loan. Everyone must qualify with credit, income, and debt rules.

A 7/1 ARM has a fixed rate for 7 years, then adjusts every year. It’s good if you plan to move or refinance soon.

A first mortgage is the primary loan on a home. It gets paid first if the home is sold or foreclosed.

A 1st mortgage is your main home loan. It takes priority over other loans if you default.

It has a fixed rate for 5 years, then adjusts every 5 years. It may save money early on.

It’s a second loan with fixed terms and a lump sum. You pay it back over time, like a personal loan.

A first mortgage loan is the main loan used to buy a home. It must be repaid before any others.

A mortgage REIT invests in home loans and earns money from interest. People buy REIT shares to earn returns.

A silent second mortgage is a hidden loan that breaks lender rules. It’s risky and can cause loan denial.


Mortgage Documents & Processes

You can put your house in a trust even with a mortgage. Get your lender’s approval first. Then, work with a lawyer to create a trust and transfer the home title into it. You’ll still pay the mortgage yourself.

Check your county recorder or assessor’s office online. You can also use property records search tools.

Find sellers online or through brokers, review the note’s terms and borrower risk, then purchase through a legal transfer.

Find a buyer or broker, agree on terms, and legally transfer ownership with proper documents.

You can change mortgage companies by refinancing your loan with a new lender.

Ask your lender for a payoff statement. It shows the total amount needed to close your loan.

Visit your county recorder’s website and search the property records. You’ll see any mortgage listed.


Consumer Concerns & Disputes

Brokers can rip you off by adding hidden fees, pushing bad loan terms, or taking higher commissions. Always check the Loan Estimate, compare lenders, and ask questions.

Add your number to the Do Not Call list, ask lenders to stop calling, and block unwanted numbers.

Explain why you can’t pay, include income, expenses, and the event causing the problem. Keep it honest and short.

The loan stays in both names unless changed. If unpaid, both credits are hurt. A court may assign payment.

You can sue for fraud, errors, unfair charges, or breaking loan terms. Talk to a lawyer first.


Regulatory and Legal Impacts

Ask the lender if the loan is assumable. If yes, you apply, qualify, and take over the payments and terms.

 

If one borrower dies, the other keeps paying. The loan stays active unless refinanced or paid off.

You must apply again. Lenders usually re-check income, credit, and documents.

Your lender may buy insurance for you and charge you. This insurance is more expensive.

Mortgage Recast Calculator

If you want lower monthly payments without changing your interest rate, recasting is better; if you’re aiming for a lower interest rate, refinancing is the better choice—though it comes with higher fees.

A mortgage recast typically costs between $150 and $500, depending on your lender; some may waive the fee under certain conditions.

Most lenders require a lump-sum payment of $5,000 or more, a good payment history, and that the loan stays with the same lender.

No, not all lenders allow recasting—you must check with your bank to confirm if they offer this option and what their criteria are.

Yes, because a lower principal balance means you’ll pay less interest over time, even though your interest rate stays the same.

Yes, if your loan balance falls below 80% of your home’s value after recasting, your lender may remove your Private Mortgage Insurance (PMI).

Most lenders complete a recast within 30 to 60 days after receiving your lump-sum payment and processing request.

You typically need to make a lump-sum payment between $5,000 and $10,000, though exact amounts vary by lender.