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.
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!
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.
As we discussed in our last email, 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.
Take a look.
If you’re interested in exploring your options more or you have questions about home financing, please reach out. I’ll be happy to help.
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.
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