Borrow responsibly
As life closes in on someone who has borrowed far too much money on the strength of far too little income, there are no fire escapes.
--John Kenneth Galbraith

Face this truth: If you let them, lenders are only too willing to advance you more than is good for your family. Mortgage banks and credit-card issuers don't care if your monthly payment makes it impossible for you to sock away money in your 401(k) or fund your kid's 529 plan. You need to set your own rules, including:

1. No credit-card debt. Period. It's never okay to pay 15% to borrow for consumption.

2. Borrow only to buy assets that appreciate. A home, yes. Education, sure. A vacation, a fancy dinner or even a 50-inch flat-screen TV? No way. 

Common Questions & Answers

Refinancing is similar to a key to a buried treasure. If it fits your financial situation, it can lead to some significant financial rewards. Consider some of the top reasons why many people refinance, and unlock the power of your home's equity.

Q:What do I do if my mortgage payments increase?

A:Many homeowners have an adjustable-rate mortgage (ARM), which can switch to a higher term after its initial teaser rate. If your ARM is adjusting, you're probably going to have a higher monthly payment. In order to avoid this, you can refinance to a fixed-rate loan, or to another ARM.

Q:How do I combine my 1st and 2nd mortgages, if the rate of my second mortgage is very high?

A:It is very common to use your line of credit and then combine the two loans into one loan at an overall lower payment.   

Q:What do I do if I may sell my house in the near future?

A:Many homeowners who start with Adjustable Rate Mortgages desire to move to the stability of a Fixed Rate mortgage later on down the road. You may be in a Fixed Rate mortgage and anticipate moving within the next 5 years.  Circumstances change over the years and you never want to pay more than you have too on your mortgage. 

We can provide you with Total Cost Analysis to find out what you can save with various loan programs. 

Q:HELP!! My monthly payments are drowning me, What do I do?

A:Like a cash-strapped pirate, it's not uncommon for you, as a homeowner, to find yourself in debt. If you need to free up cash on a monthly basis, move to an ARM with a lower interest rate, or even an interest-only mortgage loan. Either one may help you clear up some short-term monetary hurdles.

Q:The last time I refinanced, the % rate was pretty high, could I find a bank with a lower rate?

A:Securing a lower interest rate is one of the top reasons people refinance.  Just be sure that the loan you choose is the best loan for you.  A loan is more than just the interest rate because a loan with bad terms can cost you more in the long run.

Q:I don’t have much money in the bank. Can I use the equity from my house?

A:A cash-out refinance allows you to tap into the equity you have built up in your home.You may want to:

·        Pay off revolving credit card accounts that have high Interest rates[18% - 24.99%]

·        Send a child to college.

·        Use the money for home improvements.

·        Personal expenses

·        Meet your retirement goals by setting up a retirement account to fund your future. 

Q:Can I Consolidate my credit card loans?

A:A debt consolidation loan can be a treasure chest for you if you carry a balance on your credit cards. Because most credit lines carry double-digit interest rates, you can consolidate all these debts into a single home equity loan or home equity line of credit. Your monthly payment will drop, and you'll be able to reap some tax savings on the tax-deductible interest payments.

Q:My credit score was very low the last time I refinanced my loan.The rate was very high.Can I find a better rate?

A:If your credit score has improved as a result of making your mortgage payments on time and in full or paying down your debt, you may be in a position to take advantage of your improved credit standing.

We can review your current credit score, the terms of your existing mortgage, and use a Total Cost Analysis to help us find the loan that benefits you the most.

Q:I’m earning more money now, How can I pay off my mortgage sooner?

A:To prepay or to save, that is the question.  To get the most out of your loan you may need to adjust the way you pay your loan and yourself.   

With an Equity Reposition Report we can show you how your money works and in every case money in the bank grows faster than extra principle payments.

If you have a home loan, you pay a tremendous amount of money in interest on it for the privilege. You could refinance your loan to a shorter-term fixed-rate mortgage, for example, moving from a 30-year to a 15-year. Your payments may increase, but you'll realize significant interest savings in the long run.

A new home loan may not be as lucrative as a sunken treasure, but the right refinance loan can go a long way to improving your financial situation. Consider the reasons above when you analyze your particular situation. If any of them align with your current needs, you'll want to set sail for a mortgage refinance.