Refinance and Still Pay Off Your Loan

Question: “I’d like to refinance, but I’ve had my loan 18 years and have got myself in a position where I only have 12 years to pay it off.  I don’t want to blow that and start over with a 30 year loan.” Answer: I hear this a lot! And with some math or going
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Should People Start Considering Adjustable Mortgages?

Question: “I read in the paper Sunday that with rates having gone up, people are starting to consider adjustable mortgages.  What do you think?” Answer: With our still historically low interest rates, getting an adjustable mortgage would be bad advice for most people. No one can predict the future, let alone the direction of interest
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Can You Borrow Money for a Down Payment?

Question: “Is there any rule against borrowing money for a down payment?” Answer: Yes.  In fact, I don’t know of any lenders that will make you a home loan if you borrow your down payment, unless you’re borrowing against your own 401K or real estate. As a side note, with certain restrictions, many loans allow
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What’s a Loan “Approved with Conditions”?

Question: “Hi Gary.  I’m selling my home and my agent told me that my buyer just got what she called ‘loan approved with conditions’.  My agent said she doesn’t know exactly what that means and told me not to worry about it. What does that mean?” Answer: Yours is a simple question.  And if your
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Should You Get an Adjustable Rate Mortgage?

Question: “What do you think about getting an adjustable rate mortgage?” Answer: I’ll let Dave Ramsey answer this one from an email his organization sent me: “ARMs hook homebuyers with a low initial rate, then, after a designated period, the rate fluctuates for the remainder of the life of the loan. This kind of loan
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Contingencies to Get Back Your Lost Deposit

Question: “I tried to buy a condo about a week ago, but it fell out of escrow because my mortgage broker couldn’t find a loan for me when my credit score fell mysteriously.  My realtor’s broker has informed me that the seller is entitled to my $3000 good faith deposit. My realtor never informed me
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Can Your Bank Sell Your Mortgage & Change Its Terms?

Question: “I just got a notice that my home loan has been sold to some bank I’ve never heard of.  Can they do this?  And can they change any terms of my loan?” Answer: Yes, and no. Yes, banks have the legal right to sell your mortgage.  And no, they cannot change any terms of
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How Much Sooner Can You Pay Off Your Mortgage By Paying Extra?

Question: “I’d like to pay an extra $500/mo on my mortgage to pay it off sooner. How much sooner will that pay it off?” Answer: Congratulations. That’s a great idea and I’m glad to hear you can afford to do so. To answer your question, I’d have to know your loan balance, interest rate, when
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The One Loan Document You MUST Read

Question: “Hi Gary.  The last time I got a loan, I didn’t read the papers because there was just too much to read.  Are there certain documents in the big stack of papers you recommend I be sure to read?” Answer: You should read every single loan document you sign.  But who really reads a
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Pros & Cons of FHA Loans to Buy a San Diego Home

Question: “What are the pros and cons of getting an FHA loan to buy a home?” Answer: The Pros: Low down payments More flexible qualifying Lower credit score requirements The Cons: High up-front 1.75% mortgage insurance premium (MIP) High monthly 1.3% to 1.55% MIP Monthly MIP can never be removed if the loan is <10%
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