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Answers to Some Frequently Asked Questions
Lenders actually provide the funds and are limited by their internal rules and style. Mortgage Brokers work with a variety of lenders and can match the borrower with the lender that results in the best deal and the best rate for you. Carol Does Loans works with banks, commercial lenders, and private (hard money) lenders. We have plenty to choose from to make sure you get the best deal and the best rate.
Generally speaking, you can purchase a home with a value of two or three times your annual household income. However, the amount that you can borrow will also depend upon your employment history, credit history, current savings and debts, and the amount of down payment you are willing to make. You may also be able to take advantage of special loan programs for first time buyers to purchase a home with a higher value. Give Carol Does Loans a call, we can help you determine exactly how much you can afford.
Points (also called "discount points") are a form of pre-paid interest. One point equals one percent of the loan amount. Points can be used to lower your interest rate or to pay loan origination fees. A lower interest rate means a smaller monthly payment. Paying origination fees means less cash out of your pocket. The difference in savings over the life of the loan can make paying points a benefit to the borrower. If you intend to stay in your home for an extended period of time, it may be worthwhile to pay additional points in order to obtain a lower interest rate. Ask your loan officer at Carol Does Loans for the best deal for you.
You have several options: Military Veterans can buy with no money down; Down-Payment-Assistance Programs are available and depend on your income and situation; FHA has 3.5% down payment loan programs; First-Time Homebuyers and others. Ask the experts at Carol Does Loans if there is something for you.
The amount of cash necessary depends on the type of loan and the type of borrower. Generally you will need the Down Payment and your share of the Closing Costs. It's possible with some programs to buy a house with no cash. But the more money you put in, the smaller your monthly payment will be. And of course, the less cash you provide up front, the bigger your monthly payment will be AND you may have to pay PMI. Call Carol Does Loans to find out what's best for you.
For most homeowners, the monthly mortgage payment consists of three separate parts:
• Principal - Repayment of the amount borrowed
• Interest - Payment to the lender for the amount borrowed
• Taxes & Insurance - Monthly payments are normally made into a special escrow account for items like hazard insurance and property taxes. This feature is sometimes optional, in which case the fees will be paid by you directly to the County Tax Assessor and property insurance company.
Every lender is different but it can be as little as 1 year or as long as 7 years. Additionally, you will need to have worked on building up your credit rating during that time. Carol Does Loans can determine which program you qualify for and get you started.
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1. To save money! Refinancing at a lower rate will make your monthly payment smaller.
2. To avoid an ARM adjustment. Locking in a low rate today means your payment won't change in the future.
3. To get cash out of a house with lots of equity.
4. To consolidate two mortgages into one with a lower rate.
5. To stop paying Mortgage Insurance. (If your home has appreciated enough to earn you 20% equity, you may be able to stop paying insurance). If you haven't refinanced in the last three years, it might be a good idea to call Carol Does Loans and see if we can save you some money!
Points (also called "discount points") are a form of pre-paid interest. One point equals one percent of the loan amount.
Points can be used to lower your interest rate or to pay loan origination fees.
A lower interest rate means a smaller monthly payment.
Paying origination fees means less cash out of your pocket at closing.
The difference in savings over the life of the loan can make paying points a benefit to the borrower. If you intend to stay in your home for an extended period of time, it may be worthwhile to pay additional points in order to obtain a lower interest rate.
Ask your loan officer at Carol Does Loans for the best deal for you!
There are many types of loans: fixed-rate, adjustable-rate, 15 year, 30 year, no-money-down, VA, Home Improvement, etc.
Unfortunately, there is no simple formula to determine the type of mortgage that is best for you. This choice depends on a number of factors, including your current financial picture and how long you intend to keep your house.
Carol Does Loans can help you evaluate your choices and help you get the best deal at the best rate.
Call or send us an e-mail!
With a fixed-rate mortgage, the interest rate stays the same during the life of the loan, whether it's a 10 year, 15, 20 or 30 year term.
With an adjustable-rate mortgage (ARM), the interest changes periodically, typically after 3, 5, or 7 years. ARM Interest can go up or down depending on current market conditions.
There are advantages and disadvantages to each type of mortgage, and the best way to select a loan program is by talking to Carol Does Loans. Call Today!
Yes. IF you have sufficient equity - the difference between what your home is worth and what you owe.
There are several Cash-Out Loan Programs available.