Home Loans

A fixed rate mortgage is a home loan with an interest rate that remains the same for the entire term of the loan. This stability can be especially attractive to homeowners who want to budget with confidence, knowing that their mortgage payments will not change over time. Fixed rate mortgages are available in a range of term lengths and can be a good fit for many homeowners, including first-time homebuyers and those looking to refinance. One potential downside is that the initial interest rate may be higher than that of an adjustable-rate mortgage. However, this trade-off can be worth it for the peace of mind and budget predictability that a fixed-rate home loan provides. It's important to  evaluate your financial situation and long-term goals when deciding if a fixed rate mortgage is the right choice for you.

An adjustable-rate mortgage (ARM) is a home loan with an interest rate that can change over time. The initial interest rate on an ARM is usually lower than that of a fixed-rate mortgage, making it a popular choice for those looking to save on their monthly mortgage payments. However, because the interest rate can fluctuate, the monthly payment can also change. ARMs are typically available with fixed-rate term lengths, after which the interest rate will be adjusted periodically based on market conditions. It's important to carefully consider the potential risks and rewards of an ARM before choosing this type of home loan. On the one hand, an ARM can provide significant savings on monthly payments in the short term. On the other hand, if interest rates rise significantly, the monthly payment could become unaffordable. ARMs may not be suitable for those who plan to stay in their home for an extended period of time.

A jumbo loan is a mortgage that exceeds the conforming loan limits set by the Federal Housing Finance Agency. These specialized loans are designed for high-value properties and may have higher credit score and down payment requirements than conventional loans. They may also have a higher interest rate, although this can vary depending on market conditions. One potential advantage of a jumbo loan is that it can help borrowers finance a larger or more expensive property than they might be able to with a conventional loan. However, it's important to weigh your options, as the higher costs and stricter requirements can make these loans more risky.

A home equity loan can be a great financial resource for homeowners who need to borrow money. By using the equity in your home as collateral, you may be able to secure a loan with a lower interest rate than you would with other types of loans, such as a personal loan or credit card. This can make a home equity loan an attractive option for financing home renovations, paying off high-interest debt or funding large expenses such as a child's education or a dream vacation. With a home equity loan, you have the opportunity to use the value of your home to your advantage and achieve your financial goals. That said, it’s important to take into account your ability to make the required monthly payments on time and in full, as the loan is secured by your home.

A portfolio loan is a type of mortgage that is held on a mortgage lender's balance sheet, rather than being sold to a government-sponsored enterprise or other third party. This means that the mortgage lender is responsible for servicing the loan. The advantage of a portfolio loan is that the lender gets to set the criteria for the loan, rather than adhering to the standards for government-insured loans. This means they may be able to offer more flexible terms, including less stringent credit and down payment requirements.

There are several situations when refinancing a mortgage may be a good idea. Some common reasons to refinance a mortgage include:

Obtaining a lower interest rate: If interest rates have decreased since you took out your original mortgage, refinancing could help you secure a lower interest rate and lower your monthly mortgage payments. A good rule of thumb is that if you can drop a whole percentage point in your interest rate, it is usually worth exploring a refinance.

Changing from an adjustable-rate mortgage to a fixed-rate mortgage: If you have an adjustable-rate mortgage (ARM), the interest rate can change over time, which can cause your monthly payments to fluctuate. Refinancing to a fixed-rate mortgage can provide stability and predictability in your monthly payments.

Consolidating debt: If you have multiple debts, such as a mortgage and a home equity loan, you may be able to consolidate them into a single loan by refinancing your mortgage. This can make it easier to manage your debt and may help you save money on interest.

Shortening the loan term: If you have a longer-term mortgage, refinancing to a shorter-term loan can help you pay off your mortgage faster and save money on interest. However, keep in mind that a shorter loan term usually means higher monthly payments.

Accessing your home’s equity. A cash-out refinance lets you access the equity in your home by refinancing your mortgage and taking out a larger loan. This can provide a lump sum of cash you can use for various purposes such as home improvements, debt consolidation or other large expenses.

The cost to refinance a mortgage can vary depending on a number of factors, including the type of mortgage you have, the type of loan you are seeking, your credit score and the mortgage lender you choose. Some common costs associated with refinancing a mortgage include:

Application fees: Mortgage lenders may charge a fee to process your refinance application.

Appraisal fee: An appraiser may need to assess the value of your home as part of the refinance process.

Inspection fee: Some mortgage lenders may require an inspection of your home to ensure that it meets certain standards.

Title search and title insurance: A title search is a review of the public records to ensure that you have ownership of your home and there are no outstanding claims or liens on the property. Title insurance protects you and the mortgage lender against any errors in the title search.

Underwriting fee: Mortgage lenders may charge a fee for reviewing and approving your refinance application.

There is no hard-and-fast rule for how soon you can refinance a mortgage. In general, you may be able to refinance as soon as you meet the mortgage lender's requirements for a new loan. However, there are a few factors that may affect how soon you can refinance, including:

The type of mortgage you have: Some mortgage programs, such as the Federal Housing Administration's (FHA) Streamline program, allow you to refinance without a credit check or income verification. However, these programs may have specific requirements that you must meet in order to qualify.

The amount of time that has passed since you obtained your original mortgage: In general, mortgage lenders may be more likely to approve a refinance if you have made timely payments on your original mortgage and have built up equity in your home.