Frequently Asked Questions

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Most personal loans and other financial products, particularly credit cards, have much higher interest rates than mortgages.  When you borrow from your home equity at a low rate, and use those funds to pay off expensive debts, you can seriously reduce the amount of money you’re paying on interest each month. 

It’s all about using your mortgage as a tool to better yourself financially. If you look at your monthly payments that are being eliminated by paying off those debts and compare that to how much your mortgage payment is going to go up, you might be in a position where your cash flow is increasing. 

Those savings can alleviate financial pressure or allow you to save or invest more. You could put the savings towards retirement, in an emergency savings fund, or, straight back into your mortgage to pay it off faster.

Each home loan program has unique benefits that cater to a certain type of buyer. Your goal should be to find the one that best suits your needs. Here are a few questions to ask yourself as you explore the different loan types:

-Which loan has the lowest monthly payment?

-What option requires the least amount upfront?

-What option will cost me less over the life of the loan?

-Which loan type is suitable for my credit history?

-How does my income affect the products for which I’m eligible?

-What’s my price range for home buying?

-How long do I plan to stay in the home?

Your answers to these questions will help you evaluate the different types of mortgages and think about which one(s) could be best for your situation.

The FHA cash-out refinance lets you refinance up to 80% of your home’s value to leverage your equity. FHA cash-out loans allow for more lenient credit scores and flexible debt ratios than other cash-out programs. That means homeowners can access their equity even without perfect credit.

The best part of an FHA cash-out refinance is that you can use the funds for any purpose. 

Some popular uses include:

- Home improvement projects

- Credit card debt consolidation

- Auto loan payoff

- Student loan refinancing

- College tuition dues

- First and second mortgage consolidation

- High-interest debt payoff

- Refinancing from an adjustable-rate loan into a fixed-rate

Contact me today for a quote and FHA cash-out refinance requirements

Home equity loans are a popular borrowing option for homeowners who want to leverage the value of their home to pay for ongoing expenses. And while HELOCs have many benefits, you’ll want to consider its drawbacks before entering the HELOC application process.

- Benefits of HELOCs

HELOCs offer a range of advantages that make them an appealing choice for many homeowners. One of the primary benefits is the flexibility they offer in both borrowing and repayment terms. Unlike traditional loans, a HELOC allows you to draw funds as needed up to the credit line limit. This can be particularly advantageous for ongoing projects with fluctuating costs or for managing cash flow if your income is irregular.

- Disadvantages of HELOCs

One of the main concerns is the variable nature of HELOC rates which means the interest rate can fluctuate higher or lower over time.

A HELOC is secured against your home making it imperative to borrow responsibly and within your means. The easy access to funds can lead to overborrowing for some individuals, creating a debt that could be challenging to repay, especially if the home’s value decreases or personal financial circumstances change.

  A “good” mortgage rate is different for everyone. In today’s market, a good rate will for one lender to another on the same day. Mortgage rates change all the time. So a good mortgage rate could look drastically different from one day to the next.

To understand what a favorable mortgage rate looks like for you, get quotes from a few different lenders and compare them. This will show you the range of interest rates you’re eligible for and help you pick the cheapest lender for your situation. 

While it may take some time, shopping around for a low mortgage rate is well worth the effort. Even a slightly lower interest rate can save you money on both your monthly mortgage payments and throughout the life of your loan.

In such a case, it’s critical to take advantage of the market’s competitiveness. When you receive a lower interest rate offer from one lender, use it to persuade another lender to match or even undercut that rate.

Mortgage brokers like myself have even more flexibility to shop and negotiate with compared to a bank. So, please shop me and make me compete for your business!