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FAQ
1. Veterans and Their Surviving Spouses: Answer
2. What is the difference between a fixed-rate loan and an adjustable-rate loan? Answer
3. What is the difference between a broker and a lender? Answer
4. How much house can I afford? Answer
5. What are points and should I pay them? Answer
6. How do I know which type of mortgage is best for me? Answer
7. If I don't have a down payment, what other options do I have? Answer
8. Why should I refinance my mortgage? Answer
9. What is the difference between PMI and homeowners insurance? Answer
10. What is the maximum number of mortgages I can have? Answer
11. How much cash will I need to purchase a home? Answer
12. What does my mortgage payment include? Answer
13. How long do I have to wait to buy a home if I've had a foreclosure, short sale, or bankruptcy? Answer

Q : Veterans and Their Surviving Spouses:
A : If you are, or were, in the U.S. Military, the Coast Guard, the National Guard, or you are a surviving spouse, then you are eligible for a Veterans Administration zero money down, 100% financing, below market interest rate loan on single-family, residential, owner-occupied property. Please call Carol at Expert Mortgage Solutions to find out about other programs for vets and to get started!
 
Q : What is the difference between a fixed-rate loan and an adjustable-rate loan?
A : With a fixed-rate mortgage, the interest rate stays the same during the life of the loan. With an adjustable-rate mortgage (ARM), the interest changes periodically, typically after 3,5, or 7 years. ARM Interest can go up or down depending on current market conditions. There are advantages and disadvantages to each type of mortgage, and the best way to select a loan product is by talking to Expert Mortgage Solutions.
 
Q : What is the difference between a broker and a lender?
A : Lenders actually provide the funds and are limited by their internal rules and style. Mortgage Brokers work with a variety of lenders and can match the borrower with the lender thereby getting the best deal and the best rate for you. Expert Mortgage Solutions works with banks, commercial lenders, and private (hard money) lenders. We have plenty to choose from to make sure you get the best deal and the best rate.
 
Q : How much house can I afford?
A : Generally speaking, you can purchase a home with a value of two or three times your annual household income. However, the amount that you can borrow will also depend upon your employment history, credit history, current savings and debts, and the amount of down payment you are willing to make. You may also be able to take advantage of special loan programs for first time buyers to purchase a home with a higher value. Give Expert Mortgage Solutions a call, we can help you determine exactly how much you can afford.
 
Q : What are points and should I pay them?
A : Points, (also called "discount points"), are a form of pre-paid interest. One point equals one percent of the loan amount. Points can be used to lower your interest rate or to pay loan origination fees. A lower interest rate means a smaller monthly payment. Paying origination fees means less cash out of your pocket. The difference in savings over the life of the loan can make paying points a benefit to the borrower. If you intend to stay in your home for an extended period of time, it may be worthwhile to pay additional points in order to obtain a lower interest rate. Ask your loan officer at Expert Mortgage Solutions for the best deal for you.
 
Q : How do I know which type of mortgage is best for me?
A : There are numerous types of loans; fixed, adjustable, 15 year, 30 year, no-money-down, VA, home improvement, etc. Unfortunately, there is no simple formula to determine the type of mortgage that is best for you. This choice depends on a number of factors, including your current financial picture and how long you intend to keep your house. Expert Mortgage Solutions can help you evaluate your choices and help you get the best deal at the best rate.
 
Q : If I don't have a down payment, what other options do I have?
A : There are several options; Military Veterans can buy with no money down, Down-Payment-Assistance Programs depend on your income and situation, FHA has 3% down loan programs, and others. Ask the experts at Expert Mortgage Solutions if there is something for you.
 
Q : Why should I refinance my mortgage?
A : 1. To save money! Refinancing at a lower rate will make your monthly payment smaller. 2. To avoid an ARM adjustment. Locking in a low rate today means your payment won't change in the future. 3. To get cash out of a house with lots of equity. 4. To consolidate two mortgages into one with a lower rate. 5. To stop paying Mortgage Insurance. If your home has appreciated enough to earn you 20% equity, you may be able to stop paying insurance. If you haven't refinanced in the last three years, it might be a good idea to call Expert Mortgage Solutions and see if we can save you some money.
 
Q : What is the difference between PMI and homeowners insurance?
A : PMI stands for Private Mortgage Insurance. If your down payment (or your equity) is less than 20 percent of the total value of your property, the lender will always require you to pay private mortgage insurance. This is protection for the lender in case of default or market crashes. Homeowner's Insurance covers damage from fire, storms, floods, theft, and more. It can also protect you in case someone is injured in your home. It is a wise investment in your financial safety and it is almost always required by the lender. You can increase your down payment to avoid paying PMI but you can't avoid paying homeowner's insurance.
 
Q : What is the maximum number of mortgages I can have?
A : Most lenders will give you a hard time if you have 4. But there are ways to have as many as 10. Expert Mortgage Solutions knows the lenders and the tricks. Call Expert Mortgage Solutions if you want to take advantage of the current housing market and your bank is giving you a hard time.
 
Q : How much cash will I need to purchase a home?
A : The amount of cash necessary depends on the type of loan and the type of borrower. Generally you will need the Down Payment and your share of the Closing Costs. It's possible with some programs to buy a house with no cash. But the more money you put in, the smaller your monthly payment will be. And of course, the less cash you provide up front, the bigger your monthly payment will be AND you may have to pay PMI, etc... Call Expert Mortgage Solutions to find out what's best for you.
 
Q : What does my mortgage payment include?
A : For most homeowners, the monthly mortgage payments include three separate parts:
  • Principal: Repayment on the amount borrowed
  • Interest: Payment to the lender for the amount borrowed
  • Taxes & Insurance: Monthly payments are normally made into a special escrow account for items like hazard insurance and property taxes. This feature is sometimes optional, in which case the fees will be paid by you directly to the County Tax Assessor and property insurance company.
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    Q : How long do I have to wait to buy a home if I've had a foreclosure, short sale, or bankruptcy?
    A : Every loan is different but it can be as little as 1 year or as long as 7 years. Additionally, you will need to have worked on building up your credit rating during that time. Expert Mortgage Solutions can determine which program you qualify for and get you started.