Frequently Asked Questions
Q: What does it mean to refinance a mortgage?
Refinancing is simply the process of replacing your existing mortgage with a new one to lower your payment or reduce your term depending on your payoff goals. We also specialize in valuations and equity analysis depending on your short term and long term goals. These goals may be to take cash-out to invest elsewhere, payoff high interest debt, create a retirement vehicle, college expenses, etc. U.S. Mortgage Funding has the skills and know-how to help you with a no-cost mortgage analysis. Leave a message on our website or call us direct U.S. Mortgage Funding. Contact U.S. today at 1-312-448-8763 or via our contact page for more information.
Q: What is the typical refinance process?
Refinancing is usually much simpler process then buying a home. Typical steps in the process include:
- Research the value of your home and check your credit scores.
- Gather all needed documents and aply for the refinance.
- After you loan is approved, the underwriting process begins - the time for careful review.
- Sign your papers and close your loan.
Contact U.S. today at 1-312-448-8763 or via our contact page for more information.
Q: Am I better off renting or buying a home?
The decision to rent or buy a home differs for everyone, as there are benefits to both. Buying a home could be a better deal for you depending on how long you plan to live in your home and the loan you choose. Contact U.S. today at 1-312-448-8763 or via our contact page for more information.
Q: What are the advantages of a home purchase?
A home purchase gives you personal benefits such as a sense of investing in your community and pride for achieving the dream of homeownership. There are some strong financial benefits as well, especially the tax savings you may enjoy. Interest payments on a mortgage are typically tax deductible (consult your tax advisor for more information). As you continue to make mortgage payments, you'll build home equity, as opposed to paying rent to someone else. Contact U.S. today at 1-312-448-8763 or via our contact page for more information.
Q: How much can I afford to borrow?
Everyone's financial situation differs; it is important to recognize what you can comfortably afford to borrow. In general, the loan amount you can afford depends on four factors:
- Your debt-to-income ratio, which is your total monthly payments as a percentage of your gross monthly income
- The amount of cash you have available for a down payment and closing costs
- Your credit history
- The value of the property you are purchasing
For a better understanding of how much you can afford, Contact U.S. today at 1-312-448-8763 or via our contact page for more information.
Q: How much do I need for a down payment?
Your down payment requirements will depend on your lender, the type of home loan you choose and the type of property you are buying. Your required down payment can range anywhere from 1%-20% (or more if you desire) of the home's purchase price. Lenders offer a variety of different loan programs, including low down payment options. Each loan programs has different rules regarding the down payment required. Down payments can also vary by the amount you want to borrow, as well as factors like credit history. Contact U.S. today at 1-312-448-8763 or via our contact page for more information.
Q: What is the difference between a fixed-rate mortgage and an adjustable-rate mortgage?
An ARM is a loan that starts off with a low fixed interest rate for an initial period of time (anywhere from 1-10 years), and then the rate adjusts periodically to reflect changes in market interest rates. As a result, your monthly payment could either go up or down depending on interest rates when your loan adjusts. With a fixed-rate mortgage, the interest rate remains the same throughout the life of the loan, and your monthly principal and interest payments won't change. As a tradeoff for the security of knowing that your monthly payment won't increase, fixed-rate mortgages typically have a slightly higher initial interest rate than adjustable-rate mortgages. Homeowners who plan to remain in their homes for a longer time or prefer steady rates and monthly payments may prefer a fixed rate. One of our Mortgage Bankers can help you compare mortgages and choose one that works with your individual goals. Contact U.S. today at 1-312-448-8763 or via our contact page for more information.
Q: What is a conforming loan?
A conforming loan is a mortgage whose amount is under the maximum amount for loans that the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac) are legally allowed to buy. Contact U.S. today at 1-312-448-8763 or via our contact page for more information.
Q: What is an FHA loan?
An FHA loan is a loan insured by the Federal Housing Administration (FHA). The FHA is a division of the U.S. Department of Housing and Urban Development (HUD) that insures residential mortgage loans made by private lenders and sets standards for underwriting mortgage loans. Contact U.S. today at 1-312-448-8763 or via our contact page for more information.
Q: Do you have low out-of-pocket cost options?
With the wide variety of loan programs available today, there are many home finance options. With a minimal out-of-pocket cost loan, you'll see immediate reductions in your payments, and you won't have to sacrifice your savings or equity to get a great rate. Closing costs on these loans may be added to the principal balance or reflected in a higher interest rate. Contact U.S. today at 1-312-448-8763 or via our contact page for more information.