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Palm Trees

FAQ

Here are some of the common questions we have received from our clients

What's The Difference Between A Cash Out And Normal Refinance?

If you want to withdraw cash from your home equity, you’ll use a cash-out refinance (provided you’re eligible). This gives you a lump sum of cash at closing that can be used for any purpose.

 

But if you just want to refinance for a lower interest rate, you’ll use a no-cash-out or ‘rate-and-term’ refinance. This can lower your monthly mortgage payments and save you a lot of money in the long run.

How Much Down Payment Do I Need For A Purchase?

When purchasing your new home, you can pay as little as 3% down payment.

 

Your situation, loan type, location and lender requirements will be key factors on the amount of down payment is required.

 

Work with a mortgage broker to see what you qualify for!

What Fees Go Into Closing Costs?

Throughout your home purchase, third parties—such as your real estate attorney and your mortgage lender—have performed services. Closing costs include the fees these professionals (as well as others) charge for these services to finalize the real estate transaction and your home loan.

 

Closing costs are the fees and charges in excess of the purchase price of the property due at the closing of a real estate transaction.

Is A Fixed Rate Or Adjustbale-Rate Better?

Choosing the right mortgage type varies on your situation. Mortgages are not one size fits all.
Someone should consider an Adjustable-Rate Mortgage (ARM) if they are:
  • Planning on moving soon.

  • Rates are currently too high and believe with certainty that rates will drop.

  • You’re on a firm budget.

Considering a Fixed-Rate Mortgage is a safer bet if:
  • You’re planning on staying for a long time.

  • You are offered an interest rate that fits your budget.

  • Like a safer option.

  • Want a simple loan that does not fluctuate..

Why Choose To Work With A Mortgage Broker?

From finding the best interest rate and lowest fees to completing the application and closing the loan on time, mortgage brokers are well-versed in the experience of getting a mortgage. Working with a mortgage broker to navigate today’s market can be a wise move, especially for a first-time homebuyer.

How Are Interest Rates Determined?

Interest rates are influenced by the financial markets and can change daily – or multiple times within the same day. The changes are based on many different economic indicators in the financial markets.

What Is The Difference Between Mortgage Insurance Premium (MIP) And A Private Mortgage Insurance (PMI)?

MIP and PMI are 2 types of mortgage insurance. They add a premium to your monthly mortgage payment but allow you to borrow a larger percentage of your home’s value. The type of mortgage insurance you have depends on the type of loan you have.

What's The Difference Between Mortgage Insurance And Home Insurance?

Mortgage insurance is required if you have less than 20% equity (or down payment) in your home and protects the mortgage lender from losses if a customer is unable to make payments and defaults on the loan. There are two types of mortgage insurance, Private Mortgage Insurance (PMI) and Mortgage Insurance Premium (MIP).

A homeowners insurance (or hazard insurance) policy covers loss from damages to your home, your belongings and accidents as outlined in your policy.

What Our Clients Say

Palm Trees

William Damron, "Thanks Joseph"

"Joseph was amazing! He got us a great rate and took the time to walk us through what our best options were. My family would highly recommend him to any other first-time home buyers."
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