Although loans were available to people putting less than 20% down during the real estate boom of the late 1990's and early 2000s, lenders have since become much more cautious. Even if you can afford high monthly mortgage payments and have a high credit score, you may have trouble finding a low (5% to 15%) or even no down payment loan -- and the one you find will likely require you to pay a higher interest rate and loan fees (points) than if you'd made a larger down payment. Also, if you put down less than 20%, you may have to either pay for private mortgage insurance (PMI) or, to avoid PMI, take out two separate loans (a first mortgage and a second mortgage).
When considering the type of loan you should apply for its important to consider the benefits and drawbacks of each type of loan. Conventional Loans are well suited for homeowners who are not planning on moving in the next 5-7 years. Because of the larger down payment required these loans first time home buyers may not find them as appealing. FHA loans are better suited for someone homeowners who may be moving within the first 5-7 years. These loans also require less of a down payment than a conventional loan. No two situations are exactly alike. Contact one of our loan officers today to discuss the pro's and con's of both types of loans for your particular situation.
When processing a loan the most frequent delay is in collecting the paperwork. Your Regent Financial loan officer will have a list of papers and statements the underwriters will require to process the loan. If all the papers are present when the submission is first made your loan process should be fairly short. If papers are missing, outdated, or incorrect then the process slows down. Contact one of our loan officers today and experience the power of modern lending for yourself!
Yes you can! But there are restrictions. The 1997 Taxpayer Relief Act, allows certain homeowners to withdraw up to $10,000 penalty free from an individual retirement account (IRA) for a down payment to purchase a principal residence. You may be required to pay income tax on the amount withdrawn so consult an accountant before making a hasty decision. If you have a Roth IRA, however, you must have had the account for five years to make tax-free withdrawals. There is a $10,000 lifetime limit with the stipulation that the money must be used within 120 days of the date you receive it. The law limits the use to "first time home buyers" but defines a first time home buyer as someone who hasn't purchased a home for the past 2 years. Couples jointly purchasing a house must both be first time buyers to qualify. It is recommended that you speak to an accountant and/or you financial advisor prior to using funds from your IRA. You may also want to consult the IRS website. IRS Website Consult with one of our loan officers to see if you qualify for your house without needing to access the funds in your IRA.
There are many different ways to pay off your mortgage early. While the method of doing this varies the concept is still the same. There are two parts to a loan, Principle (what the house costs) and Interest (what it costs to have the loan). By making extra scheduled payments to your loan you are paying down your interest. Every time you make a payment you are paying for both your principle and interest. At the beginning of your loan you are paying mainly interest and very little principle. As you make payments on your loan over the years your loan pays more principle and less interest. By making an additional payment you are making a payment directly toward your principle amount. The more principle you are able to pay the less interest you will be paying each month. Talk to your Regent Financial Loan Officer to find the best solution for you when it comes to paying off your mortgage early. They have strategies that are designed to be easier to handle for most families.
When you have a large project most people will pay out of pocket (cash) or finance the project with credit (major credit cards, line of credit at a bank, or store specific cards) Regent Financial has an option that many people forget about. We provide loans for our clients based on the equity built up in your home. Contact one of our loan officers to see if this option is the right fit for your next project.
Advertisers need a competitive edge with loan rates at their lowest in years. While the stated rate is real what is missing are the fee's and additional items that are typically found in the fine print. At Regent Financial Group we don't use "Teaser Rates" to lure in clients. We would much rather provide our clients with an accurate rate that doesn't have any surprises. In actuality our rates are built off the same rate advertised by other lenders. The main difference is the rate you receive from your Regent Financial loan officer includes the items often buried in the fine print on the ad. No tricks, no gimmicks, just good service and rates that make sense. Contact one of our loan officers today to decode the "Teaser Rate" you are considering. You'll be glad you did in the long run!
Fixed rate mortgages are mortgages that have a level amount you pay each month for both interest and principle. While there are some variations traditionally they are found in 15 or 30 year terms. Adjustable Rate Mortgages (ARM) have a fluctuating interest rate according to factors in the economy. ARMs are typically offered with a "teaser" rate (a discounted rate) that's lower than the rate for fixed rate mortgages. After the initial discounts the ARM rates fluctuate depending on general interest rates going up or down. ARMs are linked to various financial indexes and are disclosed in the loan documentation. Variations of the "traditional" ARMs are hybrid loans and option ARMs. A hybrid loan is essentially this is a fixed rate loan that changes into an adjustable rate after a predetermined time. Option ARMs allow you to choose the amount you pay each month. You can pay a minimum amount, interest only amount, principle plus interest amount, or an accelerated payment. Option ARMs are less available after the financial meltdown of 2008.
Yes, there is a solution to reduce your debt load. Regent Financial group can consolidate your debt into one monthly payment that is easier to manage. By consolidating your debt you may be able to lower the interest rate on your current rate(s). Furthermore, if you have creditors calling you your consolidated debt solution from Regent Financial should make those annoying calls stop! Contact one of our loan officers today to see how we may be able to help you consolidate your debt today!