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Stonebriar Mortgage

Stonebriar Mortgage

Taking Advantage of Cash-Out Refinancing

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Do you need extra cash flow to pay off major debts, repair your home, go to college, or make other upgrades to your house? At Stonebriar Mortgage, we help Dallas, Texas and California residents with various types of cash-out refinance options for their home. Cash-out refinance is used when people lend against the equity already built in their home. This week, we are here to tell you about various cash-out refinance options. Read on to learn more about why people might use them.

The Nuts and Bolts of Cash-Out Refinance

It is important to understand that completing a cash-out refinance means you will start a new loan. You will have to pay closing fees and may end up with very different loan terms than with your current mortgage. The current mortgage will not necessarily go away, either. However, if you have paid off more of your home and need extra cash flow, then this may be worth the cost. Do you need to make repairs you cannot afford or want to make another major investment in life? You can compare the costs of using a cash-out refinance instead of using other options to finance you needs.

Using a Cash-Out Refinance Loan

When you choose to use a cash-out refinance, make sure the benefits outweigh the costs. Look into other financing for your needs, such as student loans, debt restructuring, store financing, and other options. Interest rates may be lower or higher with the various choices. If you have a lot of high interest debt, then using a cash-out refinance loan may help you pay it off faster. In some cases, the interest on your new loan will be lower. However, you may be able to balance transfer your debt to a new credit card and this may cost less than a new home loan.

The Pitfalls of Using a Cash-Out Refinance Loan

As stated, there may be cheaper ways to finance your needs. For example, you may need to install upgrades or replace a major appliance in your home. It may be cheaper to look at in-store financing options. Some retailers offer 0% financing and credit cards that come with rewards programs. There are no closing costs associated with opening a new credit card, and usually no fees. In a cash-out refinance, fees are a certainty.

You will also take out equity that you had built in your home, essentially borrowing money you already paid, including interest. However, in some situations it makes the most sense to create cash flow from what you have already invested. For example, if you are using the funds to purchase a second home.

Stonebriar Mortgage is here to help homeowners in the California and Dallas, Texas markets consider a cash-out refinance. Contact our offices today!

What Are Portfolio Loans?

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When a bank decides not to sell a loan on the market, they are keeping it in their portfolio. This is known as a portfolio loan. Banks choose to do this so that they can profit from all the interest as payments are applied. Portfolio loans may also give the company more control over the terms of their loan program. This may be helpful if you cannot qualify for a more conventional source of financing. Read on to learn more about why you want to take advantage of this program. Contact Stonebriar Mortgage for your home purchase needs in the Dallas, Texas or California market.

The Portfolio Loan Application

Check with the bank who provides the loan for their specific application process. Many banks use automated underwriting software. If you lack the traditional documents to meet the automated standards, then a manual underwriting process may be best. Show your worth as a borrower through business assets or investments. Many small banks operate portfolio loan programs to attract an entrepreneurial or investment-savvy borrower into their business. For this reason, they may offer you better rates and loan terms, so that you stay with their company and open other accounts.

Benefits of Using a Portfolio Loan

Obviously, this loan could benefit you if you cannot qualify for a traditional loan program. Many people also appreciate the more personalized customer service they get from working with a smaller bank or credit union.  In a larger bank, you may deal with an array of people over the life of the loan, and struggle to build trust.

Many investors are attracted to portfolio loans for fix and flip properties. The manual underwriting standards may adapt to their unique needs. For example, if you have a high debt-to-income ratio or an unusual credit history, the lender can still work with you.

Risks of Using a Portfolio Loan

Some portfolio loans will carry additional risk, especially if you already carry a lot of debt. The manual underwriting process could subject you to increased interest rates and fees. In addition, a higher down payment may be asked. You can always explore refinancing the loan later if you are not getting your preferred terms. Read the bank agreements closely, since many customize policies. Note if there are any sections where you are being asked to waive certain consumer rights. You should also note any penalties for taking actions such as paying off the loan early, selling at a certain point, refinancing, or more.

Whatever your decision, the friendly staff at Stonebriar Mortgage are here to help. We can discuss your interests and guide you in the portfolio loan process. We are here to support Dallas, Texas and California homebuyers.

Jumbo Loans

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Are you looking to buy a beautiful home in Dallas, Texas or California? Are you afraid you won’t be able to secure the financing that you need? A jumbo loan may be just the solution for you. This type of mortgage product can be used to finance home loans that exceed restrictions set by Government-Sponsored Entities (GSEs) like Fannie Mae and Freddie Mac. Stonebriar Mortgage is here to discuss jumbo loans for Dallas, Texas and California dream homes. Read on below for more information.

Jumbo Loan Essentials

There are two types of loans: conforming and non-conforming. If a loan is non-conforming that means it exceeds limits set by the GSEs. The limits for conforming loans are updated annually to reflect current home prices, and may be adjusted for more expensive areas, like in California. A non-conforming loan will not get approved for government backing.

In addition, a higher down payment may be required to secure this larger mortgage. You may even be able to provide enough money down to bring the loan into conforming standards for other government programs, such as FHA or VA loans. It is good to explore your options and apply, then adjust down payments and apply again if rejected.

Applying for a Jumbo Loan

When you go to apply for a jumbo loan, there will be a deep review of your finances. The lender will want to verify if you are able to repay the large loan amount using several factors. Here are some of the items considered:

  • Your credit score: usually you will need a good one to get approved.
  • Current debt owed and your debt-to-income ratio.
  • Whether the loan is within conforming or non-conforming rates.
  • Whether you can get Private Mortgage Insurance (PMI).
  • Whether you can offer a down payment (usually they want to see 10-20%).
  • Your current cash reserves and assets.
  • Your home ownership or rental history.

Jumbo Loan Packages

When you secure a jumbo loan, you will need to obtain Private Mortgage Insurance (PMI). PMI protects the lender in case you default on your payments. The cost of this insurance will be factored into your monthly payments. Once you pay down more of the loan, you can negotiate to have the PMI requirement dropped.

Interest rates for a jumbo loan may be higher, due to their increased risk. Perhaps you can investigate an adjustable-rate mortgage, then, apply to refinance the loan down the line if you do not like the rates that you are given. There will be closing costs associated with securing the original loan and with refinancing the loan again.

Whether or not you decide to get a jumbo loan, Stonebriar Mortgage is here to help Texas and California residents secure their dream home. Contact our friendly team today with any questions.

What are Jumbo Loans?

by

Are you looking to buy a beautiful home in Dallas, Texas or California? Are you afraid you won’t be able to secure the financing that you need? A jumbo loan may be just the solution for you. This type of mortgage product can be used to finance home loans that exceed restrictions set by Government-Sponsored Entities (GSEs) like Fannie Mae and Freddie Mac. Stonebriar Mortgage is here to discuss jumbo loans for Dallas, Texas and California dream homes. Read on below for more information.

Jumbo Loan Essentials

There are two types of loans: conforming and non-conforming. If a loan is non-conforming that means it exceeds limits set by the GSEs. The limits for conforming loans are updated annually to reflect current home prices, and may be adjusted for more expensive areas, like in California. A non-conforming loan will not get approved for government backing.

In addition, a higher down payment may be required to secure this larger mortgage. You may even be able to provide enough money down to bring the loan into conforming standards for other government programs, such as FHA or VA loans. It is good to explore your options and apply, then adjust down payments and apply again if rejected.

Applying for a Jumbo Loan

When you go to apply for a jumbo loan, there will be a deep review of your finances. The lender will want to verify if you are able to repay the large loan amount using several factors. Here are some of the items considered:

  • Your credit score: usually you will need a good one to get approved.
  • Current debt owed and your debt-to-income ratio.
  • Whether the loan is within conforming or non-conforming rates.
  • Whether you can get Private Mortgage Insurance (PMI).
  • Whether you can offer a down payment (usually they want to see 10-20%).
  • Your current cash reserves and assets.
  • Your home ownership or rental history.

Jumbo Loan Packages

When you secure a jumbo loan, you will need to obtain Private Mortgage Insurance (PMI). PMI protects the lender in case you default on your payments. The cost of this insurance will be factored into your monthly payments. Once you pay down more of the loan, you can negotiate to have the PMI requirement dropped.

Interest rates for a jumbo loan may be higher, due to their increased risk. Perhaps you can investigate an adjustable-rate mortgage, then, apply to refinance the loan down the line if you do not like the rates that you are given. There will be closing costs associated with securing the original loan and with refinancing the loan again.

Whether or not you decide to get a jumbo loan, Stonebriar Mortgage is here to help Texas and California residents secure their dream home. Contact our friendly team today with any questions.