What is a mortgage?
A mortgage is an agreement between you and the lender that gives the lender / investor the right to take your property if you fail to repay the money you’ve borrowed plus interest.
What types of programs are offered for a purchase or refinance?
Conventional, VA Loans, USDA Loans, FHA Loans either Fixed Rate or Adjustable Rate Mortgages (ARM). Jumbo Programs. Non-Qualified mortgages.
How long does it take to close a mortgage loan?
The typical timeframe it takes to close a mortgage refinance or purchase is between 30-45 days.
What is the difference between a mortgage interest rate and an APR?
The mortgage interest rate is the interest rate expressed as a percentage rate and can be either fixed or variable. It does not include fees or any other charges that you may have to pay for the loan. APR stands for Annual Percentage Rate and reflects not only the interest rate, but also such fees as mortgage broker fees, points, closing costs and other charges that you have to pay to get the loan.
Why is it beneficial to own a home?
Homeowners get tax benefits and can deduct mortgage interest and real estate property taxes on their income tax returns. Owning a home helps grow the customer’s assets. As the home builds equity, the homeowner’s property value increases. Owning a home also helps build a strong credit history. Additionally, homeowners get to avoid rent increases and all of the hassle that renting comes with.
How do I start the purchase process?
The first item to start the purchase process is to obtain a Pre-Approval / Pre-Qualification Letter. This letter will provide the Selling agent the ability to show the borrower Mortgage Qualification strength when submitting offers for a purchase.
What are the typical cost for purchasing a home?
Typical closing costs include fees for appraisal, title insurance, title search, transfer taxes, settlement services, property taxes, hazard insurance premiums and government recording fees. These fees vary on the transaction type and the geographic location of the property.
What is the difference between a Pre-Qualification Letter and a Pre-Approval Letter?
A mortgage pre-qualification letter is an estimate of how much you might qualify to borrow and the rates you may be eligible for (as determined using today’s rates), based on a preliminary review of your credit report and information you provided to your lender. A mortgage pre-approval letter means that the lender has checked and verified your credit, along with your income, assets, debts, employment history, etc. A mortgage pre-approval letter means that you are likely to be approved for a mortgage and also states the amount for which you may be approved.
Can I obtain a prequalification before I find a home I am interested in?
Titan Mutual Lending has developed a process to Pre-Approve all Clients without the borrower defining a home.
Why should I refinance?
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.
What is the difference between a Fixed loan and an Adjustable Rate Mortgage?
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.
When is refinancing a bad idea?
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.
Can I refinance if I have my home for sale?
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.
How do I check the equity of my house?
The equity of your home is your value minus your current mortgage balance.
REVERSE MORTGAGE (HECM) QUESTIONS:
Who can apply for a reverse mortgage?
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.
What are the benefits of a Reverse mortgage?
- No monthly mortgage payments.
- Consistent monthly cash flow.
- Cashing out with no limitation restriction on spending.
Can I purchase a home with a HECM loan?
Contrary to properly belief, yes you can use a HECM loan to purchase a home. In addition, no monthly mortgage payments would be required.
Who inherits the home?
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.
What are my monthly payments?
There are no monthly mortgage payments in a HECM loan. Borrowers are still obligated to pay their HOA Dues, Property Taxes and Insurance.
Does the bank own my home in a reverse mortgage loan?
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.