What are the loan products that restructureyourmortgage.com offers
to purchase a house?
restructureyourmortgage.com offers both 30-Year Fixed-Rate Loans and 15-Year
Fixed-Rate Loans.
Choose a 30-Year Fixed-Rate if:
- You want low monthly payments that do not change
- You want a loan that's generally easier to qualify for
- You're planning to stay in your new house less than 10 years
If you have a fixed loan, your house payment remains the same regardless
of the interest rate. This means if the interest rate increases, your house
payment will not. However, if rates go lower than your loan rate, restructureyourmortgage.com
will help you refinance quickly and possibly with no out-of-pocket costs
(depending on the program you choose).
The interest you pay on your loan can be tax deductible. Please consult
your tax preparer for specifics of how your taxes will be affected.
30-Year Fixed-Rate Loans are by far the most common and popular loans available.
They are ideal for first-time buyers, and buyers with smaller reserves
of cash.
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What does a lender look
at to approve me?
At the heart of approving a potential borrower is what lenders call "the
three C's of underwriting:"
- Credit — your credit history
- Collateral — the value of the property securing the loan (your
house)
- Capacity — your financial ability to assume and repay debt
Taken together, these create a portrait of a potential borrower's risk — that
is, whether or not he or she will pay back his or her loan. If the risk
seems high, the lender will be reluctant to make the loan. Depending
on the degree of risk, a lender may choose to charge higher rates and/or
fees, or decline to make the loan altogether.
Traditionally, all three were of equal importance. restructureyourmortgage.com,
however, places the most stress on your credit history.
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How do I know what
my loan rate will be?
Rates vary primarily based on the type and purpose of the loan, your credit
history and income, loan amount, value of the property, and the number
of points you are willing to pay.
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What are points and
how many do I have to pay?
Generally speaking, points are fees added onto loans. One point is equal
to 1 percent of your loan amount. Points are paid when the loan closes,
not at the time you apply for the loan.
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How do I determine
the points I want to pay?
Points are paid when the loan closes, not at the time you apply for the
loan. Generally speaking, points are fees added onto loans. One point equals
1 percent of the loan amount.
When you get a loan, you'll have the opportunity to "buy down" the
interest rate by paying discount points — essentially paying a fee
to lower your interest rate.
By lowering your interest rate, you will be lowering your monthly payment
and the amount of interest you'll be paying over the life of the loan.
You pay more at the beginning of your loan but will save money in the long
run. Keep this in mind as you determine whether to pay points.
Paying points requires a higher immediate expenditure, so it may not
be for you. In that case, let the loan do its job — allowing you to
borrow the money you need and pay it back as you can.
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Can I or my co-borrower
be self-employed and still qualify for a loan?
restructureyourmortgage.com provides loans to individuals who are self-employed.
Income documentation may be requested with certain loan products.
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How can I draw credit
when I need it?
If you want a reserve of funds you can draw on in the future, choose our
Home Equity Line of Credit. You'll have the credit you need when the need
arises - and you make no monthly payments until you draw on it. Be ready
for future expenses like medical bills, emergency home repairs, tuition,
and more.
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How do I calculate
my loan-to-value ratio (LTV)?
The loan-to-value ratio (or LTV) is one of the most important factors in
your loan process. It is used to determine the limits within which your
housing and debt ratios must fall for you to be approved. It can also determine
which fees you will be charged for your loan and the amount of these fees.
It will also determine whether you must pay Private Mortgage Insurance
(PMI) and use an impound/escrow account.
Your loan-to-value ratio (LTV) is simply the amount you are borrowing
divided by the value of the subject property you are purchasing or refinancing.
This gives you a simple ratio. For example, a house valued at $100,000
which you intend to purchase with an $80,000 loan (and a $20,000 down
payment of your own cash) is said to have an LTV of 80 percent — that
is, the loan represents 80 percent of the value of the house.
The value of your property is its appraised value OR the amount you pay
for the property (the market value), whichever is lower. In the initial
stages of qualification and approval, your property's value is understood
to be an estimate. It will be confirmed, if necessary for your particular
loan, by a professional appraiser hired by restructureyourmortgage.com.
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Can I make extra principal
payments so I can pay off the loan more quickly?
Depending on the loan, and what your state permits, it is feasible for
you to make extra payments on the loan. Extra payments will have an effect
on the amortization schedule over the remaining term of your loan.
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Do I get a tax advantage
from having a mortgage?
You should consult a tax attorney or accountant for specific details, but
interest on a mortgage is usually tax deductible. Interest on credit cards
or automobile loans is not normally tax deductible.
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Does restructureyourmortgage.com
offer loans for mobile homes (manufactured houses)?
In some cases, restructureyourmortgage.com will provide loans on manufactured
houses. The house must be at least a "double-wide" and be permanently
attached to a foundation.
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How do I qualify
for a loan?
Lenders use specific criteria to determine if you qualify for a loan
and the amount you can qualify for. You can use our Tools area to determine
whether you can qualify for a loan, the types of loan products that are
best for you, and many other things. restructureyourmortgage.com allows you
to apply and get approved right here online — it's fast, easy, and
free (restructureyourmortgage.com charges no application fee).
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How do I receive
my loan documents?
After you complete your application with a loan agent, restructureyourmortgage.com
will provide you with a package in one of two ways: via e-mail with a link
to your Loan Status page or via express mail. This package will contain
your loan application and disclosure documents.
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How do I refinance
my existing loan?
To refinance your loan in order to obtain a lower interest rate and start
saving on your monthly payments, restructureyourmortgage.com can offer you the
following loan products with the security of fixed-rate payments:
15-Year Fixed-Rate Refinance
Choose this if:
- You want a shorter loan life and lower rates
- Low monthly payments are not a priority
- You're planning to stay in your house for more than 10 years — especially
if you're planning to completely pay off your loan
ROLLDOWN OPTION
Our roll-down option allows you to refinance with few upfront fees*. While
the rate is slightly higher, you will pay few upfront fees for your new
loan. In effect, as long as our rolldown rate is lower than your existing
rate, it makes financial sense to refinance because there is little or
no cost in doing so.
CASH OUT OPTION
If your equity in your property qualifies, you can refinance with a loan
amount greater than your current mortgage — and keep the difference!
Use it for home improvement, debt consolidation, or whatever you want.
*A 'roll-down' loan is one that the lender pays all non-recurring closing
costs for the borrower. The borrower is still responsible for paying all
prepaid interest, property taxes, and hazard insurance, as well as all
other recurring items. Minimum loan amount for the roll-down is $150,000.
Closing costs assume that the borrower will escrow monthly property tax
and insurance payments.
30-Year Fixed-Rate Refinance
Choose this when:
- You want low monthly payments that do not change
- You want a loan that's generally easier to qualify for
- You're planning to remain in your house less than 10 years
- You want the maximum tax advantage (please consult your tax adviser)
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How much can
I borrow and why?
Income, debt, and mortgage payments are the primary factors that affect
whether you qualify for a loan. If you do qualify for a loan, you can apply
and restructureyourmortgage.com will move to the next step of checking to see
if you can be approved.
To determine your qualification, the first thing restructureyourmortgage.com
will do is divide the monthly payment of your proposed loan by your gross
monthly income. This provides your housing-to-income ratio.
If the resulting percentage falls within a certain range, the next step
is to divide your total monthly debt by your gross monthly income. This
provides your debt-to-income ratio. Again, if the ratio falls within prescribed
limits, you are qualified for the loan.
The limits within which your housing and debt ratios must fall are determined
primarily by the size of the loan, the value of the property, and the ratio
between the two (known as the loan-to-value ratio, or LTV). This loan-to-value
ratio is one of the most important factors in determining a home loan.
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Should I roll
in my fees?
The choice basically comes down to "pay now" or "pay later." If
you have the funds now, it makes sense to cover the expenses out-of-pocket
and save through lower loan payments and interest costs on a smaller
loan. On the other hand, if your budget is currently tight, rolling in the
costs with your loan amount makes sense because it allows you to get the
loan without immediate expense.
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Why is the
loan-to-value ratio important?
Your loan-to-value ratio (LTV) shows your equity in the property. Your
equity is basically the amount of the property you own, expressed as a
monetary figure. Another way of thinking of your equity is that it's the
amount of money you'd receive if you sold your property at its valued price,
less what you'd have to return to your lender to repay the loan. Example:
$100,000 value minus $50,000 to repay loan = $50,000 equity. Your LTV and
equity are crucial because common wisdom among lenders is that the higher
the LTV (and the lower the equity), the higher the risk of a borrower defaulting
on his or her loan. Thus, low equity loans present lenders with greater
risk, forcing them to increase their costs.
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Will a second
mortgage allow me to borrow funds against my existing property?
restructureyourmortgage.com offers several solutions to borrow funds against
your existing property value.
Home Equity Line of Credit
If you want a reserve of funds you can draw on in the future, choose
our Home Equity Line of Credit. You'll have the credit you need when
the need arises — and you make no monthly payments until you
draw on it. Be ready for expenses like medical bills, emergency home
repairs, tuition, and more.
Home Equity Loan
If you want to borrow up to 100 percent of your home's value at a fixed
rate of interest, choose our Home Equity Loan. Use those funds for
a purchase opportunity, home maintenance, debt consolidation, or major
expenses.
High loan-to-value
If you want a large sum of cash, choose one of our High Loan-To-Value
product — 125 percent Freedom Loan. With low equity — even
no equity — restructureyourmortgage.com can still loan
you the funds you need to make home improvements, consolidate debt,
buy a car, or make an investment.
To learn more about these and other products, call us any time at 1-800-803-7656.
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How do I
know how much equity I have in my property?
Equity is the value of a homeowner's interest in real estate. Equity
is computed by subtracting the total of the unpaid mortgage balance and
any outstanding liens or other debts against the property from the property's
fair market value. A homeowner's equity increases as he or she pays off
his or her mortgage or as the property appreciates in value. When a mortgage
and all other debts against the property are paid in full, the homeowner
has 100 percent equity in his or her property.
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How do I calculate
the value of my property?
Since a mortgage is a loan secured by a piece of real property, a crucial
factor is in the correct value of the property in question.
Property value can be determined in a number of ways:
The market value of the property — that is, what a buyer will pay
for it and what other comparable properties (comps) in the neighborhood
have recently sold for.
The appraised value of the property — that is, what a trained and
licensed professional deems the property to be worth based on an inspection,
comps, and a thorough analysis of the property and its neighborhood.
Additionally, the appraiser estimates the replacement value of the property — that
is, the cost to build a house of similar size and construction on a vacant
lot. The appraiser reduces this cost by an age factor to take into account
deterioration and depreciation.
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