That may have been true years ago, but with the dropping cost to refinance that has been taking place over the last few years, it's never the wrong time to think about a new loan!

     REFINANCING PROVIDES A NUMBER OF BENEFITS. 

Some benefits that often make it worth the initial  expenditure many times over:

• You may be able to lower your interest rate and monthly payment when you refinance, possibly a significant amount.
• You may also be able to "cash out" some of the built-up equity in your home and use for a variety of purposes, such as:
      a. Consolidate debt
      b. Make home improvements
      c. Take a vacation
• With lower rates and balances, you might also be able to build up home equity faster
  with a shorter-term new mortgage.

     THERE IS, HOWEVER, A COST FOR ALL THESE BENEFITS.

• When you refinance, you are paying for most of the same things you paid for when you obtained your original mortgage and this may include:
                 1. Settlement costs and other fees
              2. An appraisal
              3. Lender's title insurance
              4. Underwriting fees, etc.

If you refinance your previous mortgage too quickly there may be a penalty  you are required to  pay.  
1. This is dependent on the terms of your existing mortgage. 
2. In some places these penalties are illegal.
3. More often than not when such a penalty exists on your current mortgage it applies only or the first year or two.

WE'LL HELP YOU FIGURE IT OUT.

When you refinance take your taxes into consideration.

CONSULT YOUR TAX PROFESSIONAL BEFORE DEDUCTING POINTS YOU PAY ON YOUR NEW MORTGAGE FROM YOUR FEDERAL INCOME TAXES.

With regard to taxes, if you lower your interest rate, naturally you will be lowering the amount of mortgage interest payments you can deduct from your federal income taxes.

This is another cost that some borrowers consider.

WE CAN HELP YOU DO THE MATH!

ULTIMATELY, FOR MOST PEOPLE THE AMOUNT OF UP-FRONT COSTS TO REFINANCE ARE MADE UP VERY QUICKLY IN MONTHLY SAVINGS.

We'll work with you to determine what program is most suitable for you, taking into consideration:
  1. Your cash on hand
  2. How likely you are to sell your home in the near future, and
  3. The effect refinancing might have on your taxes.

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Second Mortgages

At one time there was a stigma associated with taking out a second mortgage on your home ... this signified that you were in financial trouble.

Today the ability to borrow money against your property is viewed as one of the biggest advantages of owning a home. Essential, a second mortgage is a loan secured by your home or another piece of property with a first mortgage.

The second mortgage allows a homeowner to tap into his or her equity to pay for costs such as:

• College tuition
• Essential home improvements
• Card card balances
• Other pressing financial needs.
  

Due to the increased risk involved with a second mortgage, the lender's conditions are generally more stringent, the term is shorter and the interest rate is higher than for the first mortgage. The holder of the second mortgage is subordinate to the first In the event of default.

To qualify for a second mortgage, your credit must be in good standing and you must be in a position to document your income. An appraisal will be required on your home to determine the home's market value.

By definition, a second mortgage is any loan that involves a second lien on the property, but you usually have two options, including a:

• Home equity loan or
• Home equity line of credit.

Both options combine your first and second loan, so your loan will be limited to 75 to 80 percent of your home's appraised value.

With a home equity loan:

• You borrow a lump sum of money to be paid back monthly over a set time frame, much like your first mortgage.
• However, the closing costs (often 2-3 percent of loan amount) are often higher than your first mortgage and the rate - usually fixed – is also higher.

A home equity line of credit (HELOC):

• Is an open line of credit tied to an equity-based maximum loan amount.
• You may use the account for a set period of time (5, 10 or even 20 years) as long as there are funds.
• Once your predetermined time period is up, you will be required to pay off the loan, making monthly payments on the principal and interest.
• The interest rate can fluctuate month to month on a home equity line of credit, which makes this option appealing when interest rates are low, but risky when interest rates increase.

When deciding what type of loan is best for you, it is important to consider: 

• How you will use the money and
• How you intend to pay it off.

   Do you need money in one lump sum or intermittent over several months or years?
   Do you want a fixed interest rate so you can repay your loan in precise monthly installments or would you rather have the flexibility to make any size payment above the interest-only minimum?

There are numerous options in existence in today’s competitive market.

I will help you find the mortgage product most suitable for your lifestyle and financial needs. 

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VA Loans

VA guaranteed loans are made by lenders and guaranteed by the U.S. Department of Veteran Affairs (VA) to eligible veterans for the purchase of a home. The guaranty means the lender is protected against loss if you fail to repay the loan. In most cases, no down payment is required on a VA guaranteed loan and the borrower usually receives a lower interest rate than is ordinarily available with other loans.

Other benefits of a VA loan include:

• Negotiable interest rate.
• Closing costs comparable – and sometimes lower - than other financing types.
• No private mortgage insurance requirement.
• Right to prepay loan without penalties.
• Mortgage can be taken over (or “assumed”) by the buyer when a home is sold.
• Counseling and assistance available to veteran borrowers having financial difficulty or facing default on their loan.

Although mortgage insurance is not required, the VA charges a funding fee to issue a guarantee to a lender against borrower default on a mortgage. The fee may be paid in cash by the buyer or seller, or it may be financed in the loan amount.

A VA loan can be used to buy a home, build a home and even improve a home with energy-saving features such as solar or heating/cooling systems, water heaters, insulation, weather-stripping/ caulking, storm windows/doors or other energy efficient improvements approved by the lender and VA.

Veterans can apply for a VA loan with any mortgage lender that participates in the VA home loan program. A Certificate of Eligibility from the VA must be presented to the lender to qualify for the loan.

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Reverse Mortgages

Reverse mortgages (also called home equity conversion loans) enable elderly homeowners to tap into their equity without selling their home. The lender pays you money based on the equity you've accrued in your home; you receive a lump sum, a monthly payment or a line of credit. Repayment is not necessary until the borrower sells the property, moves into a retirement community or passes away. When you sell your home or no longer use it as your primary residence, you or your estate must repay the cash you received from the reverse mortgage plus interest and other finance charges to the lender.

Most reverse mortgages require you be at least 62 years of age, have a low or zero balance owed against your home and maintain the property as your principal residence.

SHOULD YOU BUY POINTS?

How do you "buy" a better rate?

Do you plan on keeping your loan for a while? Then it may make sense to "buy" a lower interest rate by paying one or more "points."

Even if you're unsure of how long you plan to keep your mortgage before you move or refinance, paying points now for a lower rate may make sense. For example, do you have a high-paying job now but you think you might change careers in the next few years? We can help you sort it out. It's part of our goal to find you the right loan for your means and future.

A point -- which equals one percent (1%) of the total loan amount -- is an up-front fee that lowers your annual interest rate and total interest due over the life of your loan. So, a one point loan will have a lower interest rate than a no point loan. Basically, when you pay points you trade off paying money later in favor of paying money now. You can pay fractions of points, meaning there are a lot of points packages that can make a loan's terms more favorable if that's what's right for you.

There are a variety of rate and point combinations available. When you look at different loan programs, don't look just at the rate -- compare the whole package. Federal law requires lenders to publish their loans' Annual Percentage Rate, or A.P.R. The A.P.R. is a tool used to compare different terms, offered rates, and points.

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You will receive the personal attention you deserve and be accorded the respect due a valued customer. I understand you're making a commitment in purchasing a new home, refinancing your mortgage, or cashing out your home equity. And I make a commitment to you. I will help you qualify, apply and be approved for the mortgage loan that is right for you. Not someone else!

Let's get together and talk about your mortgage needs. 

Call me at 954-696-0363 or send me an e-mail at (lemontj@bellsouth.net), we'll set-up a time that works with your schedule and is easy and convenient for us to meet.