Does Debt Consolidation & Home
Mortgage Loans charge any up-front fees?
No! Debt Consolidation & Home Mortgage Loans charges no application
or cancellation fee ever. We invite you to apply now!
Do I have to go to your office
or have a representative come to my residence to apply for a home
While most lenders will require you to make an office visit during
the loan process, Debt Consolidation & Home Mortgage Loans does
not rquire you to visit our office. We will send the Notaries to
close your loan at your hpome or office.
What is APR?
APR is the abbreviation for Annual Percentage Rate. The APR represents
the rate of interest paid on a mortgage when factoring together
all prepaid finance charges and post settlement interest over the
life of the loan.
What is the difference between
a fixed rate loan and an adjustable rate loan?
A fixed rate loan is one where the interest rate remains constant
throughout the entire term. An adjustable rate mortgage will generally
start off at a lower rate, but then will adjust at fixed periods
throughout the life of the loan. It can go as high as the "cap"
or margin amount you agree to on the loan. This means your monthly
payments will be periodically recalculated based on the prevailing
market conditions at the time.
What is a conforming or jumbo
In most cases, a fixed rate mortgage is better when rates are low.
That way you can plan for the monthly payment amount and it will
not change. An adjustable rate mortgage may be more attractive for
those who do not intend to stay in a house long-term, as the payment
amount can go up dramatically in an increasing rate environment.
In addition, in some cases, an adjustable rate mortgage may have
negative amortization - where the amount you owe on your loan actually
goes up over time, rather than getting paid down.
What is a conforming or jumbo
A conforming loan is one that is less than the amounts established
by the Federal Home Loan Mortgage Corporation [Freddie Mac] and
or Federal National Mortgage Association [Fannie Mae].
Currently, those guidelines are:
- 1 Unit - up to $275,000
- 2 Units - up to $351,9550
- 3 Units - up to $4251,400
- 4 Units - up to $528,700
- A jumbo loan is one that exceeds these loan amounts.
What are FHA loans?
FHA loans are those that fit under the guidelines established by
the Federal Housing Administration, which is a government agency
under the direction of the Department of Housing and Urban Development
[HUD]. FHA loans are often more lenient than those set by Freddie
Mac or Fannie Mae, and the FHA requires a seller to pay for many
of the fees associated with selling a property, often making them
more attractive to borrowers who qualify.
What is a VA loan?
VA loans are those that fit under the guidelines established by
the Veterans Administration. The VA is a government agency which
encourages long-term, low down payment home loans for eligible veterans.
VA loans are often available with no down payment amount required.
What are the advantages of refinancing
The advantages of refinancing your home mortgage include the following:
• Stability - Converting an adjustable rate mortgage to a fixed
rate means your monthly payments will always be the same amount
- no surprise increases.
• Savings - Reduce your monthly mortgage payments by refinancing
a higher interest rate when rates are low to save money each month.
• Tax Deduction - Get a tax deduction on the amount you refinance,
even if you take cash out to use for other purposes. Consult your
tax advisor to determine how much of a refinanced payment may be
• Increased Value - Use additional cash from a refinance to improve
your home and increase its value.
What are the benefits of consolidating
debt by refinancing my mortgage?
• Saving money by reducing your current monthly mortgage payments.
• Increasing your tax deductions by financing other needs with a
[consult your tax advisor].
• Eliminating monthly bill payments, by consolidating all your debt
onto one monthly mortgage payment.
What are the benefits of taking
out a home equity loan?
Taking out a home equity loan allows you to consolidate other debts
you may have or use the equity you've built in your home to get
cash for other purposes, such as home improvement, financing a child's
education, a new car, or for other personal needs. In addition,
you can realize:
• Savings - Consolidating debt from other sources with higher interest
rates may mean overall lower monthly payments - often up to as much
as 60% less each month in payments.
• Tax Deduction - Get a tax deduction on the amount of your home
equity loan interest payments, even if you take cash out to use
for other purposes. Consult with your tax advisor to determine how
much of your new loan payment may be tax deductible.
• Convenience - You can consolidate bills into one monthly payment.
What's the difference between
a home equity line of credit and a home equity loan?
With a HELOC, you are qualified for a miximum credit line that you
can borrow from on a revolving basis, like a credit card. The interest
rate on a HELOC is typically an adjustable rate that fluctuates
with the pre-determined index, usually the prime rate published
in major daily newspapers, plus the margin. Your monthly payment
will change as your loan balance and interest rates change, depending
on how much you've borrowed or drawn on the line. The HEIL offers
a fixed interest rate over the life of the loan. With this type
of loan, you are approved for a specific amount of cash that you
receive in one lump sum. The monthly payments are made on a schedule,
like any installment loan such as an education loan.
How much equity do I need in
my home in order to qualify for a home equity loan?
On a primary residence, Debt Consolidation & Home Mortgage Loans
can lend up to 125% of the value of your home upon credit approval.