Below you will find some the most common questions asked. We hope they help you in answering your concern. If they don't, please call me and I will be glad to answer it for you:
I'm not sure if I will qualify for a mortgage. What can I do? - We offer no-cost, no-obligation pre-qualifications. Just call me or send me a message, and I can tell you if you qualify for the home you have seen or what loan amount you qualify for.
There are so many types of mortgages - how do I know which one is right for me? - We have a wide range of mortgage programs. Chances are, if you have heard of a program, we offer it. We offer 30 and 40 year fixed rates, adjustable rates, flex-pay mortgages, interest-only mortgages and more. Just call me and I'll be happy to discuss any option you may like. I want to help you match the program that fits your needs.
Why don't you have your interest rates listed? - Interest rates are based on many variables, including your credit, the overall loan to value ratio, your location, the type of mortgage, your level of documentation (full doc vs. stated), size of the loan, pre-pay penalty, particular lender and other variables. The only way to get a true quote is to talk with your mortgage consultant. We work with many lenders and will provide you with the best rate available.
My credit is not that great. Can I still get a mortgage? - We offer mortgages for most grades of credit. Your credit score and credit history will play an important part in determining your interest rate and maximum loan to value. Contact me to see how I can help you.
What are points and should I pay points for my mortgage? - Points are fees, generally expressed as a percent(%) which may be charged to originate (grant) your mortgage or to "Buy Down" the interest rate (Discount Points). Depending upon your personal and financial circumstances, it may or may not be advisable for you to pay points. Considerations such as the length of time you plan to stay in the home and your future earning potential are just some of the factors to be considered. Just give me a call and I'll discuss your unique circumstances.
How do I know how much home I can afford? - On average, lenders will not let your total debts exceed 50% of your gross monthly income (income before taxes). Take half of your income, and subtract things like a car payment, student loans, and your minimum monthly credit card payments that you have to make each month. If you don't know the credit card payments, take your total credit card balance and then use 2% of that amount to determine your minimum monthly payment. Next, subtract the estimated monthly property tax for homes in your target area, plus an estimate of the monthly homeowner's insurance, and any condo or association fees. What you have left is the maximum you can use for a mortgage payment. If you use the payment calculators on our site, and your desired house has a payment higher than this maximum payment you can qualify for, then you may not be able to buy the house you want unless you come up with a larger down payment or if you consider an adjustable rate mortgage or an Option ARM. Be sure to consult with me to go over your options.
What are Bi-Weekly Mortgages? - A bi-weekly mortgage is a way for you to pay off your mortgage faster by making 26 bi-weekly payments, each for half of your mortgage amount. 26 bi-weekly payments equals 13 mortgage payments made over the year. The extra payment goes to reduce your principal.
You can create your own bi-weekly payment and save all the set up and service fees that third parties charge by either making one extra mortgage payment per year, or setting up an auto-withdraw for an amount equal to your mortgage payment plus 1/12 more. For example, if your mortgage payment (principal and interest only) is $1200 per month, have $1300 paid to your mortgage every month. By doing this, you will have knocked over 6 years off your mortgage, and saved over $60,000 in interest over the life of the loan!
What is a pre-pay penalty? - A pre-pay penalty is a tool that lenders use to keep your loan on the books for a year or two. When a lender makes a loan, it often pays the broker a fee, plus pays it's internal sales and marketing team a commission. Plus, it also incurs a certain amount of direct marketing expenses to get that loan on its books. This money is not added to your loan, meaning you don't pay it directly. It is factored in your interest rate. However, if a homeowner either refinances the mortgage or sells the home within a year or two, the lender does not make enough margin on your payments to cover this expense, so the lender sometimes requires that you have to pay them an amount equal to 6 month's interest on the loan balance if you don't keep the loan for the required period. Pre-pay penalties are not allowed in all states, and can be negotiated with your mortgage consultant. Often, to avoid a pre-pay penalty, an extra point or a two can be added to the loan amount. If you are planning on selling your home within a year or two of refinancing, you need to discuss this with your mortgage consultant
.