For some, an adjustable rate mortgage (ARM) is an automatic no.
But if that's the case, it's usually for one of three reasons.
1. They're uncomfortable with any risk.
2. They're unaware of how a Hybrid ARM works.
3. They can predict the future with relative certainty.
For others, an ARM is a valuable financial tool.
A Hybrid ARM is actually a fixed rate loan for the first 3, 5, 7 or 10 years.
During the fixed period, there is no risk and typically a healthy savings.
Having reasonable expectations for future sale or refinancing is all it takes to make a Hybrid ARM worth considering.
It doesn't cost anything to be armed with the facts. Call if you would like to learn more. We're always happy to show you the difference.
As your mortgage professional, I regularly monitor the status of your loan. Based on the length of time you've had your loan and recent changes to home values in the area, I think you may be able to save money each month by having your primary mortgage insurance (PMI) cancelled.
What is PMI?
PMI is required when a borrower makes a down payment of less than 20% on the purchase of a home.
Why may I be eligible to drop PMI?
The regular payments you’ve made toward your home loan combined with estimated increases to your home’s value mean you likely now owe less than 80% of your home's current value.
How much can I save?
Amounts vary, but savings can equal hundreds of dollars a month. Check your current mortgage loan statement to view your payment breakdown and how much you currently pay for mortgage insurance.
How do I get started?
Just let me know if you want to take a closer look at your specific scenario. I’ll be glad to help!
We may not be comparing real apples and oranges, but we’re coming pretty close in the home financing industry.
And if you’re at all interested in using your home’s equity to access cash, then this comparison is for you.
There are two common ways to get cash from your home—a Home Equity Line of Credit (HELOC) or a cash out refinance.In the current environment, many people want to keep the great interest rate they already have on their home loan, so they automatically choose a HELOC over a refinance. But wait—there’s a big difference that can make the benefits hard to compare at a glance. HELOCs have adjustable interest rates, whereas most home loans are fixed.
Try it out. And if you’re interested in exploring your options more, please let me know. I’ll be happy to help.
ZEROThe VA and the USDA both offer a zero down loan program for individuals and/or properties that meet their criteria. Sometimes, loans require little or no cash out of pocket. Some HUD properties are available with as little as $100 down.
3%Fannie Mae/Freddie Mac conventional loans are available with down payments as low as 3% on single-family homes, including eligible condos, co-ops, and some manufactured homes. Fixed-rate mortgages with up to 30-year terms and ARMs are available.
3.5%The Federal Housing Administration (or FHA) loan program can allow as little as 3.5% down, and it is more lenient than most other programs on minimum credit scores and other factors.
Are you surprised at how low you may be able to go? While many believe a 20% down payment is required, you can see now that it’s far from the only option.
Whether you’ve saved a little or a lot, reach out today, and we’ll work on finding a loan that works for you.
Here’s a new addition for your home buying toolbox: a quick way to estimate a total monthly housing payment and the income needed to qualify.
Just bookmark this payment and qualification calculator link and make a quick visit while you’re looking at homes. I hope you’ll feel more comfortable knowing what you’ll likely pay each month and whether the loan may work for your particular situation.
Give it a try now!
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