General FAQs

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 loan?
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 loan?
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 loan?
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 a home?
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 tax deductible.

• 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 mortgage

[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.