No Cost Refinancing

“No Cost” means the mortgage company will pay for all closing costs and will not charge any points.  “No Cost” does not mean rolling closing costs into the mortgage. It’s true that obtaining a lower interest rate is usually the main reason for homeowners to refinance.  Some are even willing to pay more money upfront so they can receive the lowest rate possible.  But sometimes homeowners will not live in the house long enough to fully recuperate the costs.  So, as a general rule, if you are planning to move in three years or less after you refinance, then our “Rate/Term Refinancing” is probably not the most economical way to save on your monthly payments. There are some solutions that will make refinancing beneficial for just about any homeowner. Eligible loan types for these programs include Fixed Rate Mortgages and Adjustable Rate Mortgages.  With these programs, you will not have to pay points, and the mortgage company will pay all your closing costs such as: title fees, appraisal fees, insurance fees, etc.  This way, you can lower your monthly payment by obtaining a lower interest rate without having to spend a penny of your own money.  In addition, you will be able to...

Reverse Mortgage Benefits

There are several benefits associated with the Reverse Mortgage. First, there are no income or credit requirements when qualifying for this loan. Second, the borrower has no repayment obligations until the property is no longer his residence. Thus, the borrower may live in the property until his/her death without ever making a payment back to the loan. Third, and perhaps most important, the money received from this loan (the proceeds) is not taxable as income. Lastly, a significant benefit of this loan is the security of knowing that Reverse Mortgages are fully insured under the federal government’s Federal Housing Administration’s mortgage insurance program. You should consult your tax advisor with any tax-related questions or concerns. Use our reverse mortgage calculator to determine the balance of a reverse mortgage loan.

What is a Reverse Mortgage

A Reverse Mortgage is a unique loan program that enables those homeowners age 62 and older to use their equity without creating a monthly payment obligation. Thus, the reverse mortgage program enables seniors that may be “real estate rich and cash poor” to unlock the financial potential in their homes and let their homes work for them. Additionally, the reverse mortgage has no income or credit requirements to qualify. In general, the Reverse Mortgage does not become payable until the senior homeowner no longer occupies the property as his/her primary residence. At that time, the outstanding principal and the accrued interest become due. Typically, the loan is paid off with the proceeds of the sale of the home from the borrower’s estate. However, the borrower’s estate/family may decide to refinance the loan and retain the property. Any proceeds in excess of the amount owed to the lender belong to the borrower or the borrower’s estate. Thus, the Reverse Mortgage is simply a loan against the borrower’s principle residence. The borrower retains ownership of the home. If the borrower decides to sell the property, any funds in excess of the payoff amount belong to the borrower, as is the case with a regular...

100% Financing Loans

In an attempt to improve the rate of home ownership, the mortgage industry as a whole has made several additional offerings that specifically target borrowers with the desire to purchase a home without a down payment. It is important to note that the term, “100% financing,” does not necessarily mean higher rates. In fact, if you have good credit, you are still eligible for the same rates that apply to most conventional loan programs. However, higher standards of credit history are required these days, because there is a higher risk involved for lenders in the granting process of this type of loan. These programs are good for: First-time home buyers Buyers with limited resources and funding Young adults entering the work force, building up their assets Be sure to do your homework and calculate your potential expenses and monthly payments.

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