Frequently Asked Questions
Here are answers to some commonly
asked questions. If you have questions that aren't listed,
contact us at . You can email us at .
It shouldn't be a problem. There are many programs available today that
require less than 5% down payment. The best thing to do would be to call
us and we can find the right program for you.
Yes, the different types of loan programs being offered are changing
every day. We find the best loan scenario for all of our clients.
Unlike big banks that are restricted to using loan programs and
rates being offered at that time by the bank, we have access to
many lenders. What we do is find the lender that best fits your needs.
Call us today and let us show you what we can do for you.
Yes you can. However, the rules regarding this issue are constantly
changing. Your best bet would be to contact your accountant.
Your accountant can inform you of your best options in regards to this.
With a fixed rate mortgage, the interest rate and the amount you
pay each month remain the same over the entire mortgage term,
traditionally 15, 20 or 30 years. A number of variations are
available, including five- and seven-year fixed rate loans with
balloon payments at the end. With an adjustable rate mortgage
(ARM), the interest rate fluctuates according to the indexes.
Initial interest rates of ARMs are typically offered at a discounted
("teaser") interest rate lower than fixed rate mortgage.
Over time, when initial discounts are filtered out, ARM rates
will fluctuate as general interest rates go up and down. Different
ARMs are tied to different financial indexes, some of which fluctuate
up or down more quickly than others. To avoid constant and drastic changes,
ARMs typically regulate (cap) how much and how often the interest
rate and/or payments can change in a year and over the life of the
loan. A number of variations are available for adjustable rate
mortgages, including hybrids that change from a fixed to an
adjustable rate after a period of years.
It depends. Because interest rates
and mortgage options change often, your choice of a fixed or
adjustable rate mortgage should depend on: the interest rates
and mortgage options available when you're buying a house your
view of the future (generally, high inflation will mean ARM rates
will go up and lower inflation that they will fall), and how
willing you are to take a risk. When mortgage rates are low,
a fixed rate mortgage is the best bet for most buyers. Over the
next five, ten or thirty years, interest rates are more apt to
go up than further down. Even if rates could go a little lower
in the short run, an ARM's teaser rate will adjust up soon and
you won't gain much. In the long run, ARMs are likely to go up,
meaning most buyers will be best off to lock in a favorable fixed
rate now and not take the risk of much higher rates later. Keep
in mind that lenders not only lend money to purchase homes; they
also lend money to refinance homes. If you take out a loan now,
and several years from now interest rates have dropped, refinancing
will probably make sense.
Private mortgage insurance (PMI) policies are designed to reimburse
a mortgage lender up to a certain amount if you default on your loan.
Most lenders require PMI on loans where the borrower makes a down
payment of less than 20%. Premiums are usually paid monthly or can
be financed. With the exception of some government and older loans,
you may be able to drop the mortgage insurance once your equity in
the house reaches 22% and you've made timely mortgage payments. The
Servicing Lender will have the requirements for canceling the mortgage
insurance.
Our happy Clients
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"Don was professional and kept me informed throughout the process. I never felt any pressure to take a specific mortgage product. I was informed almost daily of rate changes, so I could make an educated decision of when I should lock in. The closing was handles in my home during the evening. Job well done!"
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"Don and SunMortgage refinanced my home, from start to finish, in just about 3 weeks. The entire process was smooth and extremely transparent. Don and SunMortgage will be the only company I call if I ever need another mortgage."
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"I choose don because patience and kindness he processes after contacting him 5 times before I start to use his service. It turns out to be a great choice I made during the process. It is our first time to purchase the home. With him, complex and time consuming process of financing has become a simple ,easy and enjoyable step for us. It has been a pleasure to work with Don on it. I highly recommend using don's service."