Mortgage Myths Busted2019-07-15T08:07:06-07:00

Mortgage Myths Busted

More Down Payment is Better2019-07-11T09:11:09-07:00

Not always.  Some programs are specifically designed for low or no downpayments.  For example, USDA and VA loans have a zero downpayment requirement and you get no better rate or terms for putting more money down.  Other financing options exist with only 3% downpayment options.  If you opt for FHA financing your terms are no better with a large downpayment than a small one on a 30 year loan.  And even with conventional financing which requires private mortgage insurance when putting less than 20% down, it is often worse  to rent and  save more than buy now and build equity.  Our advisors can go through the math with you so you can decide what’s best for you.  We believe home ownership often  builds household wealth and is part of the American Dream. Do not defer wealth building and your American Dream for a larger down payment that probably won’t make any difference.

Self-Employment vs Getting a Mortgage: It’s One or the Other2019-07-11T09:07:57-07:00

Mostly false.  The reality is self-employed folks often have more complicated income documentation and unlike the years leading up to the Great Recession, income documentation is a thing again.  But the good news there have been lots of recent improvements in this department for self-employed folks who may take advantage of many of the tax advantages of self-employment.  Our advisors are trained in analyzing self-employed borrowers and their sometimes complicated financial situations.  You may be surprised at what they tell you, even if you’ve been told by some stuffy banker that you chose self-employment over home ownership.  We believe entrepreneurism is part of the American Dream and so is home ownership.

Foreclosure means 4 Years of Renting2019-07-11T09:08:14-07:00

Nope. That, too, stopped being a thing with landline phones.  America is the land of second chances and homeownership is part of the American Dream.  Our advisors will review your particulars and let you know when you can buy again. You may have more choices than you realize.  Second chances and home ownership are part of the American Dream and we’re here to help you achieve it!

Owning is Always Better Than Renting2019-07-11T09:07:38-07:00

Not always.  While it’s true that home ownership is often a wealth building tool, it is not always so. Our advisors can help you perform a community-specific rent vs. buy analysis so you can make a fully informed decision.  Sometimes, depending on your circumstances, the specific economic conditions of your community, and other factors, you’re just better off renting than buying.  We’re not afraid to tell you that, because knowledge the freedom to make the right choice for yourself is part of the American Dream.  We’re here to help you achieve it, even if we don’t do business together today.

Education vs. Homeownership: Student Debt Means No Mortgage2019-07-11T08:51:14-07:00

The smart money is on homeownership, all the way!  You worked hard for a great education, you now have a job with a bright future, but you’ve been told that even deferred student loan payments disqualify you from homeownership.  Sounds like an F in American Dream 101, right? Well, the good news is we have various programs that treat student loans differently.  The rules are complicated and they change frequently, even as the debate over soaring student debt continues to be an important social and economic topic of public debate.  The good news is our advisors are A+ students when it comes to understanding the ins and outs of qualifying folks for homeownership with student loans.  We believe working hard for an education is part of the American Dream and so is home ownership.

Bankruptcy Means 7 Years of Renting2019-07-11T09:08:27-07:00

That stopped being a thing with landline phones.  America is the land of second chances and homeownership is part of the American Dream.  Our advisors will review your particulars and let you know when you can buy, even if you are still in the middle of bankruptcy, you may have more choices than you realize.  Second chances and home ownership are part of the American Dream and we’re here to help you achieve it!

Fixed Rates are Better2019-07-11T09:08:43-07:00

Sometimes.  But often other options are better.  You see, when you get a fixed rate loan the rate is typically higher than an adjustable rate, but you have the certainty for, say 30 years, your rate will never change.  But, most folks don’t keep their loan for more than 7 years.  They move, they refinance, they have other life events that cause the average mortgage loan to last about 7 years.  So if you know for sure you’re going to move in three years you really need to consider an adjustable rate loan.  But if you can’t sleep at night with any degree of financial uncertainty, then getting a fixed rate is probably good simply for the peace of mind.  Our advisors will show you various options and the financial impact of each choice.  Then it’s up to you to decide.  The act of choosing is part the American Dream and we’re here to help you achieve it!

Low Down Payments are only for First Time Buyers2019-07-11T09:09:05-07:00

Nope.  Where did all this talk of 20% down come from, anyway?  Well, there’s a legit story there, but let’s save that for another day.  The truth is anyone can get a low down payment loan.  Want to limbo and see just how low you can go?  Well, we have zero down deals for habitual home owners and first time homebuyers alike.  So, put down 50%, 20%, 5%, or 0% – just do what’s right for you.  Our advisors are here to provide options for you to decide.  Options are part the American Dream and we’re here to help you achieve it!

Rates Must be 1% Lower to Refinance2019-07-11T09:09:50-07:00

That’s so Fred Flinstone.  These days we don’t rely on an abacus to do complex math, nor do we hold on to outdated rules of thumb that could actually cost you thousands of dollars over the term of your mortgage.  The truth is there is not set rule of thumb given all the individualized factors.  Our advisors can go through a cost benefit analysis of your current loan to determine if refinancing makes sense and will achieve the goals you have in mind.  If it makes sense and there is a benefit to refinancing we’re here to help.  If there isn’t we’re also here to help tell you to stick with the great situation you already have.  Achieving the American Dream means deciding with data and facts and not outdated rules that may set you back and we’re to help you.

Mortgage Insurance is Forever2019-07-11T09:09:57-07:00

Not always.  Let’s talk about which loan product is best for your needs.  Many loans  with less than 20% down payment include mortgage insurance, (which protects the lender, not you, in the event of a default). But most products have clauses that allow you to stop paying mortgage insurance once you gain enough equity in the home through a combination of principle reduction (by making your ordinary payments) and home value appreciation.  And in many cases you can drop mortgage insurance payments without refinancing or without any cost to do so.   Our advisors can go over the fine print of it all.  Homeownership should be forever, not mortgage insurance.  But don’t think mortgage insurance is all bad.  It’s often a great way to start building wealth through home equity today with a small down payment.   That wealth building typically far exceeds the cost of mortgage insurance. Our advisors can show you how it works as you plan to achieve your American Dream!

Pools are for Resorts and Rich People2019-07-11T09:09:59-07:00

Not anymore!  With our conventional renovation loan you can finance the cost of an in-ground pool. We’ll use the future value of your home as if the pool was already there to qualify the loan and the pool can be what’s covered in the renovation costs.  You may not need to come out of pocket with anything to start enjoying your new backyard pool.  Sorry, the grill and hotdogs aren’t included, but if you can supply that part our pool renovation loan can help you live your American Dream of fun in the sun!

Carpet and Paint = Out of Pocket Expense2019-07-11T09:10:03-07:00

Buy Ugly and Live Pretty with no cash out of pocket!  Our renovation loans are not just for gut jobs and additions – they’re great to cover carpet and paint or new kitchen countertops.  Here’s how it works… if you are buying, buy the bargain house that’s ugly but just needs some cosmetics, put just 3.5% down and roll in the cost for a makeover.  Or, if you already own your home we can refinance it and roll in the cost for a makeover.  The way it works is we use the future value of the home after the makeover to qualify.  Think about it, you may be able to spend less now out of pocket for a home makeover than a day at the spa! How’s that for living the American Dream!

New Job = Another Year of Renting2019-07-11T09:10:08-07:00

Don’t be so old fashioned!  Most people don’t work for the same company for 40 years and retire with a pension anymore.  Whether you’re upwardly mobile, recently moved, or just had to get away from an evil boss, your new job does not mean another year of renting! Sure, there may be some fine print for various loan products, but allow our advisors to learn about your exciting new adventure and make home ownership a part of it. Chances are your new job helps more than hurts when qualifying for a mortgage. You’ve got the hard work part down, now let’s balance it with your home (ownership) life to achieve your American Dream!

No Down Payment = No Homeownership2019-07-11T09:10:15-07:00

Wrong!  There are great programs available that require no downpayment.  And don’t be deterred by the term “first time homebuyer” as many programs using that moniker are just fine helping folks who have previously owned a home but do not own one today.  Whether you receive modest gift funds or need a true zero down payment loan, our advisors know the various options for every situation and will guide you through the path of home ownership and to achieving your American Dream!

Working in the Gig Economy = Renting Forever2019-07-11T09:10:24-07:00

Wrong! It’s true that being a self-employed borrower creates a different level of documentation of income and time on job.  Verifying sufficient and consistent income is a key element in the process of qualifying for a mortgage.  If that form of self-employment includes being part of the “gig economy” – meaning rideshare driving, on-demand handyman work or other similar types of on-demand work – it may complicate matters further.  But the good news is, these gig economy jobs have great technology and great documentation that’s easy to provide and our team of experts can guide you down the path to homeownership.  We believe hard work and entrepreneurism are part of the American Dream and so is home ownership.