The following are top questions and answers for both Mortgage and Reverse Mortgage loans.
Chris Tsamoudakis with nearly 19 years of experience helps you with Home Purchase, Purchase Loan, Refinancing and Home Equity.
Top Mortgage Questions
Why did my Realtor refer me to you?
A good realtor will form relationships with trusted individuals who have proven themselves time and time again, so that they know you will be given the excellent service that you deserve. It is important to know that your realtor is NOT given any compensation or “kickbacks” for referring you to a mortgage broker.
As a mortgage professional, I desire more referrals, both from you and your realtor, so consider the extra motivation this provides for us to take great care with your satisfaction!
What does it mean to be a mortgage broker?
I can get a Wells Fargo loan at a lower cost than you going into your own Wells Fargo branch office and getting a loan there. The difference is retail vs. wholesale. The retail offices of these banks offer retail rates. Brokers offer wholesale rates which are lower. Brokers close 80-90% of all loans that are offered by these banks and mortgage lenders, so brokers have to have better pricing from them in order to keep their loans funding at current levels.
Does it cost more to work with a broker?
Is 20% of the price of a new home required as a down payment?
For down payments of less than 20%, mortgage insurance (MI) will be required and associated costs will apply.
Why and how do interest rates change?
Can young people get loans?
It’s not true.
The fact is, among all the things that mortgage lenders look at, the most important – whatever your background – are these: what is your income compared to the debt you’re currently carrying, what is your credit history, and how much do you have in savings.
Are mortgage payments more expensive than rent?
How much cash will I need to purchase a home?
· Earnest Money: The deposit that is supplied when you make an offer on the house
· Down Payment: A percentage of the cost of the home that is due at settlement
· Closing Costs: Costs associated with processing paperwork to purchase or refinance a house
What is the minimum income I can earn and still qualify for a mortgage?
Will a late credit card payment disqualify me from getting a mortgage?
Late payments (especially those under 30 days) should not automatically disqualify you from getting a loan. Almost everyone has had trouble making a payment at one time or another. You’re only human, and mortgage lenders know this. Many people find themselves in difficult financial situations, often due to illness, divorce or temporary unemployment.
If you can demonstrate that the problem is in the past, and you have been able to re-establish a good track record for a sufficient amount of time, you should still be in a good position to get a mortgage loan. There may be a reasonable explanation, so speak to your lender honestly and openly about the situation. It’s important to remember that lenders don’t just look at your past history, but also at your ability and willingness to pay in the future.
Sometimes, you may not be ready to buy a home. Doing so may only compound your problems. If you don’t qualify for the loan you want today, work with me to address the issues that have kept you from getting your loan approved. With a little help, you may be just a few months away from getting that new home.
How is an index and margin used in an ARM?
How do I know which type of mortgage is best for me?
What does my mortgage payment include?
· Principal: Repayment on 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.
· You need to be aware of Negative Amortizing loans and their FULLY INDEXED rates. These loans have their advantages, but utilized incorrectly, they can chew up your homes equity fast! Then that little payment won’t seem like such a good thing.
What is the difference between a fixed-rate loan and an adjustable-rate loan?
There are different types of ARM loans, so you have to choose wisely.
Should I do a loan that has a Three year pre-payment penalty attached to it?
1. You pay a higher interest rate on the loan than if you didn’t have the 3 year prepayment penalty. Strange, but true.
2. You are now stuck with this loan for three years. The only way to get out of it sooner is to pay a penalty of 6 months interest which can be over $30,000 on some large loan amounts. Talk about being financially trapped.
3. The Loan Officer who sold you this loan is going to get paid 2-3 times more money than if he had NOT put you into a 3 year pre-payment penalty.
I know what you are thinking. Where is my benefit for being shackled in this bad loan for three years. There is none! I am still waiting for someone to tell me what it is. In the meantime, my clients will not be in loans that have 3 year pre-payment penalties. I have yet to do a loan with a three year prepayment penalty in all of my years of being a mortgage financing specialist.
When should I consider refinancing?
If it’s not in your best interest, I will tell you to NOT do any refinancing. I want you to be in the best financial position as possible.
Top Reverse Mortgage Questions
What is a reverse mortgage?
Is my home eligible for a reverse mortgage?
What are the differences between a home equity loan and a reverse mortgage?
How much cash can I expect to get?
What happens if I outlive the loan? Will I have to repay the lender?
Must my house be paid off for me to qualify for a reverse mortgage?
Do I have to pay taxes on the cash payments I receive?
How will this loan affect my estate and how much will be left to my heirs?
Should I use an estate planning service to find a reverse mortgage?
How do I receive my payments?
- Tenure: equal monthly payments
- Term: equal monthly payments for a fixed period of months as decided by the borrower
- Line of Credit: payments made in installments or at various times and in amounts dictated by the borrower(s)
- Modified Tenure: monthly payments with a line of credit
- Modified Term: monthly payments for a fixed period of months with a line of credit