A very interesting loan product that can help monthly positive cash-flow consumers pay-off their mortgage sooner is the All-In-One. You don’t hear of this product much in the U.S., but similar products have been offered in Western Europe, Canada, New Zealand and Australia. It is called All-In-One because it combines both a home loan...
Before paying off your mortgage loan make sure you obtain the payoff statement. The lender can provide a payoff statement and the final amount to be paid to release their lien. Then you can know the principal balance, interest up to the date of closing, penalties (if any), and other charges the lender may...
It looks like a condo, is it a condo? One cannot determine whether or not a structure is a condo by looking at it when it comes to HOA’s. There are many properties that you may know as a patio home, townhome, or even a single-family residence, but because of the way the land was...
Are you considering applying for a reverse mortgage? Do you have questions about reverse mortgages? A reverse mortgage is a loan where you don’t have to make a monthly payment, rather, the equity in your home makes the payment. You have to be at least 62 years old to qualify and have a 40-50% equity...
Contributions toward closing costs allow costs at closing and prepaid expenses to be paid by interested parties to the transaction. So, if you only have the down payment, or are looking to do a no down payment loan and do not have much cash, you can negotiate to have the closing costs paid for...
What is DU and LPA, you might ask? Loan Originators use both DU and LPA automated underwriting programs. DU is Desktop Underwriter and is Fannie Mae’s underwriting software. LPA is Loan Product Advisor and is Freddie Mac’s underwriting software; most conforming loans are run through one of these software programs. These programs dictate details...
You may, or may not be familiar with a gift of equity. What is a gift of equity? Perhaps your child is looking to purchase a home and you are ready to sell your home. Your child has expressed an interest in living in the childhood home instead of you selling it to a third...
When applying for a mortgage loan, the details matter. It is important that you provide us with all of the information, so we know how best to get the loan for you. Many times we’ll talk to someone on the phone who appears to know the process, or “has a friend” who did or...
Many prospective homebuyers often ask us what mortgage insurance is and how it works. Mortgage insurance is imposed when less than 20% is paid toward the down payment on a home loan or a refinance. Example: You are purchasing a single-family home for $250,000, with 10% down payment. It will be your...
When you are purchasing an investment property, apply for an investment property loan. Do not purchase an investment property and apply for a second home loan for the sole purpose of getting a lower interest rate. To do this would be mortgage fraud. Here are a few examples of how this can affect you:...