Types of Loans

Do you need help?

• My interest rate changed, my payment has increased:

NOW is the time to refinance your adjustable mortgage into a new FIXED RATE mortgage. Even with many banks and lenders closing daily, there are still many programs available to you depending on your credit, employment, and income. Call today so we can discuss all of your options.

• I owe more than my house is worth, I cannot refinance:

This is a major problem for thousands of homeowners today. There are ways that we can help you to keep your house. I have contacts within major mortgage servicing companies that allow me to negotiate solutions to your problem.

• I hear that I can refinance with no closing cost:

The short answer is yes you can. The reality is that no one likes to pay closing cost. Your typical closing cost usually run 2-3% of your loan amount. If a mortgage brokers wants to “pay” all of your closing cost, in most cases, you will end up paying much more for your loan then if you would have by paying the closing cost yourself. The banks and lenders pay us, the mortgage company, a commission based on the rate you are given. The higher the rate the more money we make. So what happens, you don’t pay your closing cost and the broker pays them, you end up with a much higher interest rate. The broker has to make enough money in their commission from the bank to pay your closing cost plus make money. So you end up paying more money monthly for your mortgage.

• I see advertisements that say $600 for a $500,000 mortgage:

This loan is one of the major causes of the mortgage mess that the country is in right now. These loans offer a start rate as low as 1-3% and offer 4 payment options. The first option is the 1% rate payment. Which is that teaser low payment ($600) that they advertise. The second is the true market rate, which for this example we will say 6.5%. They take this rate and offer you an interest only payment. The third option is the true market rate with a 30-year amortization. The forth option is the market rate with a 15 year amortization. If you plan on making only the low teaser payment, every month the principle balance that you owe will increase. This loan is only good for certain people who completely understand this program and how it works. This is a very basic example please give us a call or email if you would like further information on this program. We will NEVER put a first time homebuyer or someone on fixed income on this program!!