CitiMortgage

CitiMortgage Introduction

CitiMortgage is a subsidiary of Citigroup, which is an international banking institution. Citigroup have several corporate offices located throughout the county. The main offices are located in Texas, Pennsylvania, Florida and California. It is one of the few banking institutions who do not usually resell their mortgage portfolios on the secondary money market. CitiMortgage also has a very flexible homeowners assistance program designed to help borrowers who are behind in their mortgage payments.

CitiMortgage Mortgage Rates

There are a number of mortgage programs available to homebuyers.
The interest rates of fixed rate mortgages are lower the shorter the term of the loan and are substantially higher on longer-term loans.

The percentage of down payment can also affect the interest rate of a fixed rate mortgage. When the borrower has down payment less than 20% of the total purchase price, there is usually lender required mortgage insurance premium added to the monthly payment.

The mortgage insurance premium is based upon the credit score of the borrower. Some mortgage insurance providers will reject the policy if the credit score does not meet their minimum requirements. There is also an initial premium that is automatically added to the principal balance of the loan at the time the loan is originated, that is typically several thousand dollars.

There are many adjustable rate mortgage programs available to homebuyers. The adjustable rate mortgages are available in 3, 5 and 7 year fixed rates that adjust at the end of the fixed term, which usually results in a substantially higher monthly payment.

Some homebuyers will pay a percentage point at the time the loan is originated to obtain a lower interest rate. One point is equal to one percent of the principal balance of the loan. It is common for a buyer to ask the seller of the property to pay some of the buyer’s closing costs and typically include the buyer’s points.

When the buyer's property tax and homeowners insurance is added to the monthly mortgage payment, an escrow impound account is created. The impound account will require the buyer to add funds to this account prior to the closing of the loan to insure that funds will be sufficient in the account when they are due to be paid. If a buyer request that the taxes and insurance not be included in the monthly payment it usually results in and eighth to a quarter of a point being added to the annual interest rate. When a borrower is required to pay the taxes and insurance on the property it results in a higher risk to the lender that the borrower may default on the payments.

CitiMortgage Refinance Rates

Refinance rates are traditionally equal to the current market interest rates for purchase mortgages. Typically in a refinance the borrower has little out of pocket cost for the new mortgage. The closing costs are usually financed into the principal balance of the new loan. The property value must have equity to cover any cash out the borrower receives and all of the closing costs.

If a borrower is asking for cash back at the closing of a refinance mortgage, there is usually a percentage of a point added to the interest rate of the new mortgage.

CitiMortgage Home Equity Loan Rates

CitiMortgage does not offer Home Equity Loans (HELOC). When a customer requests this type of mortgage or line of credit they will refer them to CitiBank, which is a subsidiary of Citigroup.

CitiMortgage Information

New Mortgage or Refinance: 1-800-248-4638

Company web address all states: citimortgage.com