Loan Types

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Refinancing is a word used frequently in the world of mortgages.

What is it? Is this an option for me? When should I? How can I?

These are all questions we ask ourselves as we explore mortgage decisions.

Deciding to refinance can help you save money on your mortgage, shifting your debt to a more favorable position.

What is Mortgage Refinancing

Refinancing means you are paying off your previous loan and replacing it with a new one. To refinance your loan, requires you to qualify for the loan as you did with the original mortgage. The process will be the same submitting an application, underwriting review and closing. Choosing to refinance can offer better terms, lowering your monthly payments and allowing you to pay off the loan sooner.

Why You Should Refinance

Refinancing can take time and seem like you are spinning your wheels, but this process has many benefits.

Reduces monthly payments with lower interest rates

Securing a lower rate can help lower the amount you spend...

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The Difference Between VA and FHA Mortgage

FHA stands for Federal Housing Administration. VA is short for Veterans Affairs in US Departments of Veterans Affairs. They are both US government organizations that insure home loans. This article will walk you through the difference between FHA and VA mortgages.

In short, FHA mortgages are federally insured mortgages designed to help qualified borrowers buy a home with less money down and lower credit. VA mortgages are government insured mortgages for active or veteran military service members and their spouses.

VA Mortgages

VA mortgages are insured by the US Government through the US Department of Veterans Affairs. In order to qualify, a borrower must be a service member or veteran or a spouse of a military service member or veteran.

Borrowers must have satisfactory credit score, which is typically 620 and above.

The borrower must also have a Certificate of Eligibility. The Certificate of Eligibility (COE) proves that the applicant officially meets the minimum military service requirements to qualify for a VA loan.

The home...

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What is an interest-only loan?

Many people enter into the mortgage process and are unfamiliar with the products that are available in the marketplace. Some borrowers are sophisticated and have been through the mortgage process before. Whichever category you fall into, it is worth understanding an Interest-Only ("IO") mortgage when you are looking at all the options.

Interest-Only loans are attractive to buyers wanting to save money on their monthly payments.

What Is An Interest-Only Loan?

An Interest-Only Loan is a loan where you pay only the interest portion of the loan at the beginning and the principal at the end. The interest payments last several years at the first portion of the loan term (usually the first 10 years).

What Is Re-Amortization?

Re-amortizing your loan means that you can adjust the terms of your loan to change the loan payment amount or to shorten or lengthen the loan term. In short, the loan payment is recalculated.

In the case of Interest Only mortgages, when the interest portion of the loan finishes up, the payment...

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Are you looking to tap into extra equity while in retirement? Is most of your equity tied up in your home? Are you age 62 or older?

A reverse mortgage may be an option for you.

We will dive a little deeper into the details of what a reverse mortgage is, qualifications and how it works, so you are able to determine if this is the right option for you.

What is a Reverse Mortgage?

A reverse mortgage is a loan available to homeowners ages 62 or older, who own their homes with no mortgage payment. Usually, reverse mortgages are federally insured and can help you tap into your home equity.

Qualifications for a Reverse Mortgage

To be eligible, the primary homeowner must be 62 years or older. You must own your home outright and all existing mortgages must be paid off or your existing mortgages can be paid off through a reverse mortgage transaction. The property must be maintained and the primary residence you reside in, as well as up to date on current property tax, homeowner’s insurance, homeowner’s...

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