Mortgage Services
A fixed-rate mortgage keeps your interest rate the same throughout the loan term, while an ARM's rate can change over time, usually after an initial fixed period. ARMs may offer lower initial rates but carry the risk of future increases.
USDA loans are designed for rural homebuyers with moderate to low incomes. Eligibility depends on factors like location, income, and household size. Check with a lender to see if you qualify.
VA loans, available to eligible veterans, active-duty service members, and some surviving spouses, often require no down payment and have competitive interest rates. They also typically don't require private mortgage insurance (PMI).
Yes, you can qualify for a conventional loan with a down payment as low as 3% to 5%, depending on the lender's requirements. However, you may need to pay private mortgage insurance (PMI) if your down payment is less than 20%
The minimum credit score for an FHA loan is typically 580. However, some lenders may require a higher score. FHA loans are known for accommodating borrowers with less-than-perfect credit.
A non-QM (non-qualified mortgage) loan doesn't meet the Consumer Financial Protection Bureau's (CFPB) standards for qualified mortgages. These loans are often used by self-employed individuals, investors, or borrowers with unique financial situations.
The frequency of rate adjustments on an ARM depends on the loan terms. Typically, the rate adjusts annually after an initial fixed period, but some ARMs adjust every six months or even monthly.
FHA loan limits vary by location and are set annually by the Department of Housing and Urban Development (HUD). In high-cost areas, the maximum FHA loan amount can be significantly higher than in standard areas.
Yes, you can refinance a USDA loan through the USDA's streamlined refinance program or by applying for a conventional refinance. The eligibility requirements and benefits will vary based on the type of refinance you choose.
Non-QM loans offer more flexibility in terms of income verification, credit history, and property types. They can be suitable for borrowers who don't qualify for conventional or government-backed loans due to unique circumstances. However, they may come with higher interest rates or fees.
Mortgage Refinance Services
A Cash-Out Refinance lets you tap into your home equity by refinancing your mortgage for more than you owe and receiving the difference in cash. It's like turning your home's equity into spendable cash.
A Cash-In Refinance involves bringing cash to the table to pay down your mortgage balance. It's a smart move if you want to lower your monthly payments or secure a better interest rate.
A Rate and Term Refinance allows you to adjust your interest rate, loan term, or both, without tapping into your home's equity. It's ideal for borrowers looking to lower their interest rate or switch to a different loan term.
An FHA Streamline Refinance is a simplified process for existing FHA borrowers to refinance their mortgage with minimal paperwork and underwriting requirements. It's a hassle-free way to lower your monthly payments or interest rate.
A VA Streamline Refinance, also known as an Interest Rate Reduction Refinance Loan (IRRRL), is a streamlined refinance option exclusively for eligible VA loan holders. It's designed to lower your interest rate and make your mortgage more affordable.
A USDA Streamline Refinance is a simplified refinance program for existing USDA loan holders. It offers reduced documentation and faster processing to help homeowners lower their monthly mortgage payments.
Yes, if your home's value has gone up since you bought it, you may qualify for a Cash-Out Refinance or a traditional refinance with better terms. A higher home value could mean more equity to work with.
It depends. If you can secure a lower interest rate or significantly reduce your monthly payments, refinancing might still make sense even if you plan to sell in the near future. Consider the costs and potential savings carefully.
The refinancing process usually takes anywhere from 30 to 45 days, though it can vary depending on factors like the lender's workload, your financial situation, and the type of refinance you're pursuing.
It depends on the type of refinance and your lender's requirements. Generally, Cash-Out Refinances and traditional refinances may require an appraisal to determine your home's current value, while streamline refinances may not always require one.
Reverse Mortgage Services
A HECM reverse mortgage is a loan for homeowners 62 or older that allows them to convert a portion of their home equity into cash. You don't have to repay it until you move out or sell your home.
A proprietary reverse mortgage is a private loan offered by a private company, while a HECM is insured by the Federal Housing Administration (FHA). Proprietary reverse mortgages may have different eligibility requirements and terms.
A Single-Purpose Reverse Mortgage is a type of reverse mortgage offered by some state and local government agencies and nonprofit organizations. It's designed for specific purposes, such as paying property taxes or making home repairs.
Yes, you can use a Home Equity Conversion Mortgage (HECM) for Purchase (H4P) to buy a new home. It allows you to use the proceeds from the sale of your current home or from your savings to purchase a new primary residence.
A reverse mortgage line of credit works like a traditional line of credit, but it's secured by your home equity. You can borrow funds as needed, up to the credit limit, and you only pay interest on the amount you use.
The benefits of a HECM reverse mortgage include supplementing retirement income, paying off existing mortgage debt, and providing financial flexibility without monthly mortgage payments
To be eligible for a HECM reverse mortgage, you must be at least 62 years old, own your home outright or have a low mortgage balance that can be paid off at closing with proceeds from the reverse loan, and live in the home as your primary residence.
If you outlive the loan term of a reverse mortgage, you or your heirs will have the option to repay the loan balance and keep the home, or sell the home to repay the loan balance. The lender cannot force you to sell or move out as long as you continue to meet the loan obligations.
Reverse mortgage proceeds are generally not considered taxable income because they are considered a loan advance, not income. However, you should consult with a tax advisor for specific tax advice related to your situation.
Yes, you can lose your home with a reverse mortgage if you fail to meet the loan obligations, such as paying property taxes, homeowners insurance, and maintaining the property. However, as long as you continue to meet the loan requirements, you can live in the home for as long as you like.
Home Equity Services
A Home Equity Loan gives you a lump sum upfront, while a HELOC acts more like a credit card with a revolving line of credit that you can borrow from as needed.
The amount you can borrow depends on factors like your home's value, your equity, credit score, and income. Typically, you can borrow up to 85% of your home's value minus any outstanding mortgage balance.
You can use the funds from a Home Equity Loan or HELOC for various purposes, such as home renovations, debt consolidation, education expenses, or emergencies.
Interest rates for Home Equity Loans and HELOCs can vary based on market conditions, your credit score, and the terms of the loan. Generally, interest rates may be lower than other forms of borrowing because they're secured by your home.
To qualify for a Home Equity Loan or HELOC, you typically need to have a good credit score, sufficient equity in your home, and a steady income. Lenders may also consider your debt-to-income ratio and other factors.
Repayment terms vary, but Home Equity Loans usually have fixed monthly payments over a set period, while HELOCs have a draw period where you can borrow funds followed by a repayment period where you must repay what you've borrowed plus interest.
In some cases, you may be able to deduct the interest on a Home Equity Loan or HELOC if you use the funds for home improvements. However, tax laws can change, so it's best to consult with a tax advisor for specific guidance.
If you default on a Home Equity Loan or HELOC, you could risk losing your home through foreclosure. It's essential to communicate with your lender if you're facing financial difficulties to explore options such as loan modifications or repayment plans.
Yes, you can typically pay off your Home Equity Loan or HELOC early without prepayment penalties. Doing so can save you money on interest over the life of the loan.
To apply for a Home Equity Loan or HELOC, you'll need to gather necessary documents such as proof of income, property documents, and identification. Then, you can apply online, over the phone, or in person with a lender.