Schedule a Consultation
Call us Today at: (214) 669-3307

Stonebriar Mortgage

Stonebriar Mortgage

Jumbo Loan Refinancing

by

In past topics, we covered jumbo loans, which are typically used to finance high-value homes and larger than standard mortgages. Many people get approved for jumbo loans that have high rates in this somewhat riskier mortgage. If you have a jumbo loan, you may want to refinance and restructure as you pay it off.  Check today and see if you can get better interest. This week, Stonebriar Mortgage is here to educate homeowners throughout California as well as Dallas, Boerne, Fair Oaks Ranch, Helotes, and San Antonio, TX about jumbo mortgage loan refinancing.

How Do I Qualify for a Jumbo Loan?

Jumbo loans are also known as non-conforming loans because they exceed limits established by government agencies. For this reason, someone may need to undergo more scrutiny to seek approval for a jumbo loan. These loans are not approved for government backing, so you will also need a good financial history to qualify to refinance a jumbo mortgage.

How to Refinance a Jumbo Mortgage

Qualifying to refinance a jumbo mortgage may prove very difficult and will come with additional fees, since some jumbo loans are quite large. The size of the loan means that interest payments can really add up over time, so it may be worth the effort to refinance and save. You can do a financial projection to see if the initial costs warrant the savings. If you decide to go for it, prepare to provide ample documentation.

Many lenders desire to see a good credit score and loan-to-value in order to approve a jumbo loan refinance. Some people have adjustable-rate mortgages and are looking to save on interest, others apply in order to pull out cash from the home. Your debt-to-income ratio must be under 43%. You will also need to show proof of other sources of cash and financial reserves. There may also be limits on the number of properties you can hold mortgages on in order to qualify. The team at Stonebriar Mortgage is here to assist homeowners in The Colony, Flower Mound, Lucas, McKinney, TX and beyond through this process.

Gathering Documents to Refinance

In the process of refinancing a jumbo loan, there is ample documentation that you will need to gather. You will want at a minimum:

  • At least two years of tax returns.
  • At least two years of W-2s.
  • At least one to two months of pay stubs and bank statements, including ample evidence of commissions earned (if needed).
  • If you are self-employed, you will need to provide profit and loss statements for your business.

Finding the Right Time to Refinance

Be sure you look closely at your credit, debt-to-income, and loan-to-value in order to learn if it is time to refinance your jumbo mortgage loan. Qualified professionals are here to help. Stonebriar Mortgage works with Allen, Frisco, Highland Park, Plano, and Prosper, TX homeowners for Jumbo Loan Refinancing. Please contact our office with any additional questions.

Reverse Mortgages

by

A reverse mortgage is exactly how it sounds; it is a loan taken out of the equity in a home you already own. Many people use a reverse mortgage to pay off debt, make home repairs, or purchase a second property. Home equity loans are another name for a reverse mortgage. While these loans can be hard to understand, the process can be quite simple. In this week’s blog post Stonebriar Mortgage helps Dallas, TX and California homeowners learn about reverse mortgages.

Understanding Reverse Mortgages

Imagine you take out a reverse payment from all the monthly payments you have made on your home mortgage. This is exactly what you do when you apply for a reverse mortgage. The lender is taking your loan out of the equity you have built in the home, and paying it back out. You will still be charged interest and fees to complete the process. Be sure that you can pay off a reverse mortgage, because if you cannot, then you may have to sell your home.

Home Equity Mortgages

Another name for a reverse mortgage is a home equity mortgage. One type of program, called the Home Equity Conversion Mortgage (HECM) is a government-sponsored program. You can apply for this program directly. Eligibility criteria include many different requirements. Some programs require a minimum age to apply. If you are older, then you have typically built more equity in homes you have owned. The amount of money you can get in this program may depend on your age.

When you apply for an HECM, you will meet with a government housing counselor. Together, you will review your income, home appraisal, credit score, debt, and abilities to handle additional financial responsibilities. The counselor will then notify you if a HECM makes sense and can also help refer you to other programs.

Other Reverse Mortgage Programs

Single purpose reverse mortgages are another alternative to an HECM. They are a program created for a single specific purpose: such as energy upgrades or home renovations. Government agencies and nonprofits typically manage single purpose reverse mortgage programs. Some agencies even create programs to help people pay off their debts.

Proprietary reverse mortgages are another type of home equity loan. These are designed by private banks, typically. If you wish to increase the value in your home or raise its worth, you can speak to a lender about the various programs available. Since the lender creates the program terms, there can be many options for your reverse mortgage.

If you want to know more about reverse mortgages, we are here to help. Stonebriar Mortgage helps Dallas, TX and California homeowners with an array of home loan needs, including equity loans. Contact our friendly team today!

What is FHA Streamline Refinancing?

by

Loans provided by the Federal Housing Administration often come with great rates and benefits. However, many existing FHA customers could refinance their loan and save even more! With a new process aimed at quick approval, the FHA has come out with a great refinancing product. This week, Stonebriar Mortgage teaches Dallas, TX and California homeowners about the benefits of FHA Streamline Refinancing.

How FHA Streamline Refinancing Works

The process of FHA Streamline Refinancing works by eliminating much of the paperwork and appraisals that are often required to refinance a loan. Certain eligibility requirements must be met. For example, you should be current on your loan payments over the last 12 months. Decent credit will also improve your odds; you will likely have this if you are in good standing on a current FHA Mortgage.

The process is so easy. Some people can even apply right over the phone, without needing professional assistance. Use caution, as you will create a new loan in the process. Ensure that the new debt-to-income ratio is something you can handle.

How to Qualify for FHA Streamline Refinancing

If you are looking to save money on your current FHA Loan payments, and are in good standing, the process to qualify for streamlining is easy. Here are some of the eligibility requirements:

  • Your current mortgage must be FHA-insured; a conventional loan will not qualify for the streamline procedures.
  • You must be current on your payment history and have had the FHA mortgage for at least 210 days.
  • Lenders may disqualify you if you have been delinquent on payments, however, some will overlook this if your mortgage is newer and the payment was under 30 days late.
  • Lenders like to see a benefit to applying for streamlining. Examples of a benefit include the ability to make payments more easily or to reduce the term of the loan. In addition, the new interest rate should be lower.
  • Many say that the new interest rate, Mortgage Insurance, and principle payments may not exceed the existing mortgage by more than $50.

Although you cannot cash-out from this refinancing option, many say the cash you save on payments is just the same as a cash-out refinance. In addition, lenders are not allowed to include closing costs in the mortgage under a streamline process. We have shared general FHA guidelines in this week’s blog post. Please note that different lenders may have updated their procedures and processes.

Stonebriar Mortgage will help you and your family work through the process of refinancing your loan. We have experience working with Dallas, TX or California customers to reap the many benefits of the FHA Streamline Refinance. Contact our friendly staff with questions today!

Interest-Only Home Loans

by

Are you looking to buy another investment property? Do you lack the cash flow to pay large monthly mortgage bills? Many buyers want to learn more about great financing to buy a home. This week, Stonebriar Mortgage helps Dallas, TX and California residents understand interest-only home loans. Read on to learn more about various programs and start comparing options. Then, contact our offices when you are ready to start looking.

Interest-Only Home Loan Programs

Many programs are available for home mortgages that offer interest-only financing. It is best to stay up-to-date with program policies, as there are innovative funding opportunities on the rise. Many people remember the awful mortgage crisis in the early 2000s, and are fearful of risks with interest-only options. However, regulations have changed in response to the mortgage problems of the past.

Interest-only mortgages will begin with lower than usual monthly payments and then increase over time. The borrower is only paying off the interest on the loan with these initial bills. This may seem illogical, but interest-only loans offer opportunities to enter the homeowner market at a rate many people can afford. You need to be cautious, and consider whether you can handle the ballooning payments down the line. In the past, banks would approve customers who could not handle this increase. Today, added safeguards are in place that may prevent this issue in the future.

How Interest-Only Home Loans Work

Interest-only mortgages are returning to the market, but remain a very small percentage of new loans approved.  A majority of these mortgages come with a 30-year term. The initial ten years of the loan are interest-only payments. These loans can be fixed-rate or adjustable-rate mortgages. The fixed-rate option helps you predict and keep the same payment throughout the entire term. However, it will be harder for you to take advantage of a lower interest rate should one become available. Conversely, you are protected if interest rates rise.

Some lenders charge a higher rate since interest-only loans may be riskier to approve. If you are able, see if you can make payments towards the principle balance of the loan during the interest-only period. This is usually allowable without a penalty, just be sure you inform the lender that the extra pay applies to principle. However, some lenders will charge penalties for trying to pay too large of a balance or the entire loan early.

How to Qualify for an Interest-Only Mortgage

Many people who are successful at securing an interest-only mortgage carry common traits. Lenders typically like to see higher income and credit scores. A larger down payment will also help convince the lender to carry more risk. Your assets will be reviewed, and it is best if you have reserves that can quickly be converted to cash if needed.

Stonebriar Mortgage is here to help homeowners in the California and Dallas, Texas area consider interest-only loans, contact our friendly team today!

Buying a Home with a Bank Statement Loan

by

Are you concerned about being able to qualify for a mortgage using traditional underwriting? Do you own your own business or are you self-employed? A bank statement loan may be the best program to finance your home. Bank statement loans use your bank statements and other records to verify your ability to repay the mortgage. If you lack W-2s or tax statements that can accurately reflect your financial standing, then this loan may be your ticket to owning a home. This week, Stonebriar Mortgage helps Dallas, TX and California homebuyers understand this unique mortgage product.

Preparing to Apply for a Bank Statement Loan

The best way to start preparing for your bank statement loan application is to meet with your accountant and gather documentation of your income, assets, debts, and businesses owned. Print out records and bank statements for the past few years, or as requested by the lender. Your tax records, credit score, and housing history may also be used to validate your application.

Qualifying for a Bank Statement Loan

Your employment record, business history, and business plans or market studies may also be helpful in predicting your ability to repay a bank statement loan. Depending on the size of mortgage you seek, a 20% or larger down payment may be requested. Good credit will also help your case; some say 680 or above is standard. Profit and loss statements and tax records of your personal or business finances are also useful in helping you qualify. Essentially, the lender is trying to project what income you will have to repay your loan—so anything you can offer is helpful.

Why Some People Choose to Use a Bank Statement Loan

People who invest heavily in real estate or other businesses for their income often use bank statement loans. If you are someone who likes to fix and flip properties, you may have unusual income patters or large debts. Income may be sporadic, or seasonal. However, you can offset this debt with the assets you own. In this is the case, you may not qualify for a more traditional mortgage program. The lender will use bank statements over a period to analyze and predict what you will be able to handle in your financial future. If you are retired, then you may have to show how your retirement and investment income will help you pay off a bank statement loan.

Stonebriar Mortgage works with a diverse array of customers to secure homes through bank statement loans. Sit down with your accountant and gather your financial history in order to get ready to search for a home. Our staff are interested in helping Dallas, TX or California customers accomplish their financial goals, contact our office today!