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Your Questions Matter — We’re Here With Answers
Choosing The Right Loan
Got questions about home loans, mortgage options, or the application process?
Begin with five points: goal (buy, lower payment, cash out), budget (max comfortable monthly), cash (down payment/closing costs), timeline (how long you’ll keep the loan/home), and credit/income (what programs you qualify for). The best loan fits today’s budget and tomorrow’s plans.
Choose a fixed rate if you want long-term payment stability. Consider an ARM if you expect to move, sell, or refinance within the fixed period (e.g., 5–7 years) and want a lower initial rate, understanding it can adjust later.
Conventional: Great credit, flexible terms, 3%+ down; PMI can drop at 80% LTV.
FHA: 3.5% down, easier credit; includes mortgage insurance.
VA: 0% down for eligible veterans/active duty; no monthly PMI.
USDA: 0% down in eligible rural areas; income/location limits.
Jumbo: For higher-priced homes above conforming limits.
More down lowers payment and may remove PMI on conventional loans at 20% equity. FHA MIP lasts at least 11 years (or longer with small down payments). We’ll show scenarios (lower down vs. lower payment vs. faster PMI removal).
Shorter terms save interest and build equity faster but raise the payment. Longer terms lower the payment and boost monthly cash flow. Pick the shortest term that still leaves a comfortable cushion for savings and emergencies.
Options may include bank-statement loans, asset-depletion, or DSCR (uses rent to qualify for investment properties). These can carry higher rates/fees but solve for documentation gaps when standard guidelines don’t fit.
HELOC: Flexible line for ongoing projects; variable rate; keeps current first mortgage.
Cash-Out Refi: One new fixed payment; good if today’s rate/terms beat your current loan.
Piggyback/Bridge: Second loan to cover part of down payment or time the sale of your current home.
Points buy down the rate; credits lower upfront costs. Use a simple break-even check: total cost of points ÷ monthly savings = months to recover. If you’ll keep the loan past that point, paying points can make sense; otherwise, consider credits.
