The amount of home you can afford is determined by the size of the mortgage loan you are able to comfortably pay. The amount of mortgage you are eligible for is influenced by three factors: the percentage of your monthly income that goes towards mortgage payments, the amount of cash available for the down payment and closing costs, and your credit history.

• Fixed-Rate Mortgage: In this type of mortgage, the interest rate and monthly payment for principal and interest remain the same for the entire term of the mortgage, typically 30, 20, 15 or 10 years. Fixed-rate mortgages are a good choice for those who plan on staying in their home for an extended period.Adjustable-Rate Mortgage (ARM): This mortgage has a fixed interest rate for an initial period, ranging from 1 to 10 years, and then adjusts annually based on a specified index for the remainder of the loan term. ARMs can be a suitable option if you expect interest rates to decrease in the near future or if you plan to stay in your home for 5 to 10 years or less.

A 15-year mortgage lets you become a homeowner in half the time compared to a 30-year mortgage. Despite having higher monthly payments, a 15-year mortgage helps you save a substantial amount in interest and rapidly increase your equity.

At MortgageMint® we offer low down payment programs for our first-time home buyers.

• Down payments as low as 3%.
• Lower down payment requirements compared to other financing options, allowing you to purchase a home with less cash upfront.
• Market-leading interest rates.
• Manageable payments for every budget.
• Low to NO closing costs!

• The mortgage interest deduction is a tax benefit for homeowners. It allows homeowners to claim a deduction on their taxable income for the mortgage interest they paid, reducing the amount of taxes owed. This deduction can also be claimed on loans for secondary homes as long as it complies with IRS limits.

YES!! Getting pre-qualified for a mortgage is a crucial step before purchasing a home. It gives you an estimate of how much you can afford to spend on a home and streamlines the mortgage application process. Moreover, having a pre-qualification letter can strengthen your bargaining power with the seller when negotiating the terms of the sale.

Pre-qualifying for a mortgage can provide you with a response in just a few minutes. The pre-qualification process is simple and straightforward, requiring only a few easy steps.

A mortgage rate lock secures your interest rate from rising during the time between your mortgage application and closing. By locking in the rate, borrowers can ensure they receive the best mortgage rate available while going through the refinancing or home purchasing process.

Our loan application process includes a discussion of current mortgage rates and gives you the option to lock in your interest rate right away. Alternatively, you can choose to monitor mortgage rate fluctuations and lock in a rate at a later time.

• An impound account, also known as an escrow account, is a savings account controlled by your lender to hold funds for real estate expenses such as property taxes and insurance. Instead of managing these expenses yourself, you make extra payments each month along with your mortgage payment, which the lender uses to cover the expenses when they are due.
• While having an impound account takes some of the stress of managing these expenses off of you, it’s important to be aware that there is a risk of a shortage if your insurance premiums or taxes increase. In such a scenario, you would be responsible for paying the difference. Therefore, it’s important to regularly review your impound account and make sure sufficient funds are being set aside.

Yes. As long as the property you are buying or refinancing is in the United States.

Year-end interest-paid statements (IRS Form 1099) are mailed out by the end of January. You should expect to receive your statement in early February.

You can use your home equity to pay for almost anything. Make home improvements, pay for college, consolidate debt, buy a new car, go on vacation or for cash reserves.

Home equity credit involves using the borrower’s home as collateral. The key differences between them include:

1. Interest Rates: A home equity line of credit often has a variable interest rate, while a home equity loan may have either a fixed or a variable interest rate.
2. Accessibility: A home equity line of credit provides ongoing access to funds over a longer period, and as you repay the funds, they become available for reuse. On the other hand, a home equity loan provides a lump sum of funds that must be repaid over a longer period, with no ability to reuse funds.
3. Payments: A home equity loan typically has fixed payments, making budgeting easier. Meanwhile, a home equity line of credit usually has a variable payment that can be as low as just paying interest during the draw period, but during the repayment period, monthly payments consist of a fixed principal amount plus interest.

The index is based on The Prime Rate. This index plus or minus the stated margin is what determines the home equity line of credit rate.

Fixed-rate loan options are available on home equity lines of credit. Our fixed-rate loan option allows you to lock all or part of your home equity line of credit balances at a fixed interest rate, payment and term. A monthly bill shows your balance, including any fixed-rate loan options. You can also designate separate names for each fixed-rate loan option to make them easy to identify. You can choose to fix any portion of the outstanding balance on your line.

First mortgage loans will typically lend up to 80% of the value of you home while Home equity lines of credit & fixed 2nd Mortgages from 85% to 95% of the value of you home.

Interest is paid on both first mortgage and home equity loans, but the tax deductibility of home equity loan interest is a debated topic. The IRS revised its guidelines in 2018, which restricts who can claim a tax deduction for their home equity loan interest and the types of home equity loan interest that can be written off on taxes.  According to the IRS, the tax deduction for home equity loan interest is only available if the equity was used to purchase, build, or substantially improve the taxpayer’s home.

Under some circumstances, the bank may require a full inspection appraisal but many times bank only require what is known as a drive-by appraisal.

In a drive-by appraisal, the appraiser only needs to view the exterior of the home and conduct research on recent sales in the area, rather than performing a comprehensive inspection of both the interior and exterior, to estimate the value of the property.

Refinancing is often pursued for the following reasons:

• • Reduce interest rate to lower monthly mortgage payments
  • Pay off a mortgage faster with a shorter term loan
  • Take cash out to payoff credit cards, student loans / tuition, car loans etc
  • Take cash out for general cash reserves

The interest rates and the length of the mortgage can play a crucial role in the decision to refinance.

Closing costs can be categorized into three main categories:

• • Lender fees: Including fees for origination, points, application, credit report, and appraisal.
  • Third-party fees: Fees charged by the state and the closing company for services such as title exam, title insurance, and recording.
  • Pre-paid items: Expenses paid at closing that are not considered costs, such as interest, taxes, and homeowners property insurance.

Closing costs can vary dramatically from 0% of the loan amount ( where the lender can cover costs) and up to 3%.  You will be provided with an estimate of your closing costs at the start of the loan process to avoid unexpected expenses at closing.  If the property has enough equity, the closing costs can be incorporated into the new loan amount, reducing the out-of-pocket expenses for the borrower.   The estimated closing costs can change if you change the loan product, interest rate or loan amount, so be sure to ask about the impact of these changes on the closing costs.

Yes! You can consolidate your first and second mortgages into one low monthly payment. Call today for more details!

If you want to refinance, your home cannot be listed for sale.

You can get a response in minutes when you pre-qualify for a mortgage. There are just a few easy steps involved in the pre-qualification process. Pre-qualify today to refinance your home!

A mortgage rate lock secures your interest rate from rising during the time between your mortgage application and closing. By locking in the rate, borrowers can ensure they receive the best mortgage rate available while going through the refinancing or home purchasing process.

Our loan application process includes a discussion of current mortgage rates and gives you the option to lock in your interest rate right away. Alternatively, you can choose to monitor mortgage rate fluctuations and lock in a rate at a later time.

Typically, a property appraisal is required for refinancing, but in certain circumstances, an appraisal waiver may be granted. The availability of an appraisal waiver can only be determined after the loan has been submitted and a preliminary underwriting decision has been made.

The refinance closing is handled the same way your loan was closed when you first purchased your property. After your loan is approved, you’ll receive copies of documents you’ll need to sign at closing.