FAQ
FAQ
REFINANCE QUESTIONS:
Refinancing your home could be the best option to secure a lower interest rate on your mortgage, as well as, save money on your monthly payments. With this loan option, you have the chance to re-evaluate your mortgage terms, including changing the length of your loan or changing the type of rate (adjustable or fixed). If you are in need of extra cash, you can choose cash-out refinancing by borrowing more money from your home equity.
A Fixed Rate loan has a defined interest rate for the full term of the loan. A Adjustable Rate Mortgage (ARM) has a fixed term for usually 5-10 years then adjust on the defined index.
If borrowers plan on moving in the immediate future, have begun the amortization process of their current mortgage, or have a prepayment penalty; they should reconsider a refinance plan.
A lender cannot refinance your property if your home is listed for sale. At a minimum, the property needs to be one day out of the listing process.
The equity of your home is your value minus your current mortgage balance.
REVERSE MORTGAGE (HECM) QUESTIONS:
You can apply for a reverse mortgage if you are at least 62 years old, the home is your primary residence and most, if not all of your traditional mortgage has been paid.
- No monthly mortgage payments.
- Consistent monthly cash flow.
- Cashing out with no limitation restriction on spending.
Contrary to properly belief, yes you can use a HECM loan to purchase a home. In addition, no monthly mortgage payments would be required.
When both you and any eligible spouse have passed away, heirs wanting to retain the home must pay off the loan through a refinance or any other method. But they will not have to pay back more than the house is worth.
There are no monthly mortgage payments in a HECM loan. Borrowers are still obligated to pay their HOA Dues, Property Taxes and Insurance
When a HECM loan is obtained the title of the home still remains in the borrower’s name. When the you or a spouses passes, the heirs have a set period of time to pay off the mortgage.
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