FAQs

Answers to Freguently Asked Questions about property purchase and refinance

In order for us to issue a pre-approval for you, we would need to review your taxes, income and assets. Contact our office to get started.

An appraisal is an evaluation of property obtained from an independent certified professional. It is needed to help the lender to determine market value of the property you are purchasing, since the property will be used as collateral against the mortgage.

One point equals one percent of your loan amount. Discount points are onetime fee that you may choose to pay to lower your interest.

Closing costs include fees for title insurance, escrow services and pre-paid interests, just to name a few. Once you open escrow, you will be presented with a list of estimated fees.

There are still options for lower credit score or damaged credit history. Contact our office to discuss available portfolio programs.

Depending on the program and term of your mortgage, each month your payment will pay down the principal and interests. Typically, a bigger portion of your payment will go towards you interest, especially in early years of your term. Additionally, depending on details of your loan, portion of you payment may be applied to mortgage insurance, homeowner’s insurance, property tax and flood insurance if applicable.

Refinance

There are a few reasons to consider refinancing:

  1. Lower your monthly payment
  2. Switch from adjustable to fixed rate
  3. Lower your interest rate
  4. Cash out to pay off other debt
  5. Change term of your loan.

No. High credit score will definitely give you an advantage in interest rate, however, having a lower credit score will not necessary disqualify you.

Generally speaking, a good time to refinance would be when the mortgage interest rates are falling or once value of your home went up. Also, if you see that you can afford to pay off your mortgage in a shorter term.

Yes, you can take cash out of your house and payoff some or all of your other debts. Generally, mortgage interest rates are lower than other types of loans, hence, refinancing into a higher amount to pay off you other debts will be beneficial.