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.
Good news! When it comes to documenting income, self-employed borrowers can get back to normal.
What does this mean?
Borrowers who rely on self-employment income may now submit their most recent tax returns, so long as they are no earlier than 2020, in typical scenarios.
How does this help?
Under previous Covid-era rules for certain government-backed loans, self-employed borrowers had to submit recent P&L statements, asset account statements and more. It’s much easier for most to supply tax returns instead.
If you have a little extra cash each month from refinancing your home or are experiencing one of those rare life changes that sends additional funds your way, have you considered what to do with the money?
Please don’t be fooled into thinking the amount is too small to make a difference. With time and compound interest on your side, your little bit of savings now could become a much greater amount later.
Check out our easy calculator to see for yourself. It will take less than a minute.
If you have questions or would like a referral to a financial professional, please reach out. I’ll be happy to help.
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 if qualified for a conventional loan type.
What is mortgage insurance (MI)?
MI is required for home loans financed through the Federal Housing Administration (FHA). Most current FHA borrowers paid an upfront premium at closing and continue paying monthly as part of their regular mortgage payment as long as they own their home.
Why may I be eligible to cancel MI?
You may now have sufficient equity in your home to obtain a conventional loan without any mortgage insurance.
How much can I save?
Amounts vary, but savings can equal hundreds of dollars each 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!
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