What Clients Ask The Most

With so many different quotes from lenders, do I pick the lowest option when refinancing or buying a new home?

Interest Rates are generally the same as everybody else since we all pull from the same pool of funds. You will qualify for what YOU qualify for. There is no one size fits all in the mortgage industry, a standard 30 year fixed rate depends on a number of different factors, some of which will directly affect your rate and or fees. That’s exactly why we incorporate the Investor Lot strategy in the first place. With this strategy I am able to break the norm of lending and provide below market rates and fees for my clients.  Give me a call and ask about our Investor Lot Strategy to learn more!

When should I refinance?

I get asked this question every day and there is no straight answer. Here are the main reasons to refinance your mortgage: 
1.You Need To Change Your Loan Term
2. You Need Cash To Pay Off Debts
3. You Want To Do Home Improvements Or Renovations
4. You Want To Allocate More To Retirement Saving
5. You Want to Convert An ARM To A Fixed-Rate Mortgage
At the end of the day, refinancing your property will come down to your financial plan and goals. Give me a call to discuss some options that would benefit you today!

Should I get a fixed rate or adjustable rate loan?

Fixed-rate mortgages and adjustable-rate mortgages (ARMs) are the two primary mortgage types. While the marketplace offers numerous varieties within these two categories, the first step when shopping for a mortgage is determining which of the two main loan types best suits your needs. A fixed-rate mortgage charges a set rate of interest that does not change throughout the life of the loan, while the initial interest rate on an adjustable-rate mortgage (ARM) is set below the market rate on a comparable fixed-rate loan, and then the rate rises (or possibly lowers) as time goes on. The biggest advantage of an ARM is that it is considerably cheaper than a fixed-rate mortgage, at least for the first three, five, or seven years. Lets discuss where you want to be with your mortgage to get a better idea what loan would work best for you!

What are mortgage points?

Mortgage points, or discount points, are a way to prepay interest to get a lower interest rate on your mortgage. Each mortgage point equals 1% of your home’s value. That means if you’re getting a $250,000 loan and have two discount points, you’ll pay $5,000. In most cases, a point can reduce your interest rate by one-eighth to one-quarter of a percent. "Smart Money Lending", a phrase I coined, is trending with my current clients. With rates as low as they are, people are finding that they can buy down there rate so low that they will never have to refinance again! 

What’s the difference between being prequalified and preapproved?

A quick conversation with your lender about your income, assets and down payment is all it takes to get prequalified. But if you want to get preapproved, your lender will need to verify your financial information and submit your loan for preliminary underwriting. A preapproval takes a little more time and documentation, but it also carries a lot more weight.

How much home can you afford?

I recommend keeping your monthly mortgage payment to 25% or less of your monthly take-home pay. For example, if you bring home $5,000 a month, your monthly mortgage payment should be no more than $1,250. This would mean you can afford a $211,000 home on a 15-year fixed-rate loan with a 20% down payment. Still unsure? Give me a call and we can take a look at your situation!