Frequently Asked Questions
If you’ve got any questions not answered here, please let us know.
Q How do I start the loan process with Network Mortgage?
Q What are the main types of mortgages?
The most common mortgages are fixed and adjustable-rate mortgages:
- Fixed-rate mortgages offer the stability of regular monthly payments over a given length of time, or term.
- Adjustable-rate mortgage (ARM) programs offer an initial interest rate and payment lower than a standard fixed-rate mortgage.
If you plan to be in your home for more than seven years, you may want to consider a fixed-rate mortgage, which offers predictable payments and long-term protection against rising mortgage interest rates.
If you plan to be in your home for seven years or less, an adjustable-rate mortgage (ARM) could be attractive. Keep in mind that with an ARM, your monthly payments have the potential to go up each time your interest rate adjusts.
Q What is a VA mortgage?
The Veteran’s Administration (VA) loan program is guaranteed by the U.S. Government’s Department of Veteran’s Affairs. VA loans may be available to the following individuals:
- Honorably discharged veteran
- Active duty service member
- Un-remarried surviving spouse of a military service member
- National Guardsperson
Q What is an FHA mortgage?
Q What is an HECM reverse mortgage?
Q How much cash do I need for a down payment?
That depends. There are a lot of opportunities when it comes to down payments. A few of your options may include:
- HomePath by Fannie Mae requires down payments of 3%
- Home Possible by Freddie Mac requires down payments of 3%
- Some local municipalities that offer down payments of less than 3%
- Some lender rebate programs can result in down payments as low as 1%
- United States Department of Agriculture (USDA) rural home loans require no down payment
- Veteran’s Administration (VA) loans require no down payment
Just keep in mind that many conventional loans, with down payments of less than 20%, may require private mortgage insurance (PMI).
Today, there are many loan programs that can be tailored to fit your lifestyle and financial resources. If you’d like to discuss which options may apply to your situation, you can contact us at any time.
Q What is private mortgage insurance?
Q Can I buy a home if I have lousy credit?
Q Are mortgage costs tax-deductible?
Three types of mortgage and homeowners costs may be tax-deductible:
- Discount points
- Interest paid on a home loan or home equity loan
- Property taxes
After the year that you buy your house, only your mortgage interest and annual property taxes are deductible. Be sure to consult your tax advisor for advice about your specific situation.
Q What are the benefits of refinancing?
Q When does it make sense to refinance?
In general, one or more of the following conditions should be present before you should consider refinancing:
- Mortgage interest rates are falling
- Your home has significantly appreciated in market value
- You’ve been making payments on your original 30-year mortgage for less than ten years
Q Can I refinance to take cash out of my house?
Q Can I consolidate debt when refinancing my mortgage?
Yes. Cash-out refinancing can help homeowners consolidate high-interest, non tax-deductible debt. Because your mortgage interest rate is likely to be lower than your credit card rates or personal bank loans, consolidating debt may reduce your overall monthly debt payments. In addition, your mortgage interest may be tax-deductible, while your credit card interest is not.