Texas Home Lending News

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.

ZERO
The 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.

Your “payoff amount” is always higher than your remaining principal balance. Your balance is the amount of remaining principal owed. Your payoff amount is the balance plus prorated interest from the last payment received until the loan is actually paid off. 

The funding date is usually different from the closing date. The government mandates a three-day rescission period for refinances of primary residences. Loan payoffs will not occur until the fourth business day post closing. This will affect the payoff amount, the final payment date and the release of any cash. 

Do you actually get to skip a payment? It seems that way because your first regular payment is usually not due until the second month after closing. The reality is that while you do get a break on paying principal for the closing month, between the old and new loans, you are still paying a full month's interest. 

Don't count on your existing escrow funds for closing. If you have an escrow account for taxes and/or insurance, these funds will be held there until the current loan is paid off. Accordingly, unless funds for taxes due and/or a new escrow account are covered by the new loan, be prepared to advance this money at closing. It will typically take several weeks before your current escrow account funds are returned to you, so it pays to plan ahead.

As always, we're here to help you with your transaction and to answer your questions. We want you to be comfortable with the process and understand it fully. 

Never hesitate to reach out.