Miami Mortgage Broker

Frequently Asked Questions

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It shouldn’t be a problem. There are many programs available today that require less than 5% down payment. The best thing to do would be to call us and we can find the right program for you.

Yes, the different types of loan programs being offered are changing every day. We find the best loan scenario for all our clients. Unlike big banks that are restricted to using loan programs and rates being offered at that time by the bank, we have access to many lenders. What we do is find the lender that best fits your needs. Call us today and let us show you what we can do for you.

Yes, you can. However, the rules regarding this issue are constantly changing. Your best bet would be to contact your accountant. Your accountant can inform you of your best options in regards to this.

With a fixed rate mortgage the interest rate never changes, so the principal and interest amount you pay each month remain the same for the entire life of the loan. With an adjustable rate mortgage (ARM), the interest rate can fluctuate throughout the life of the loan based on market conditions. An ARM will have a initial interest rate that is set for a number of years, and then will adjust once that period of time has passed.  The first number in an ARM indicates the length of time that the rate will be fixed, and the second number indicates the frequency of adjustments after the fixed period has concluded.  For example, a 7/6 ARM has a rate that is fixed for the first 7 years and then will adjust every 6 months once the fixed period has concluded.  As another example, a 5/1 ARM would be fixed for 5 years then adjust every year once the fixed period has concluded. The benefit of an ARM product is that it may offer a lower interest rate than an equivalent fixed rate product, but the drawback of an ARM is that some borrowers do not want the uncertainty of what their payment may be in the future.

It depends. Most borrowers will select a fixed rate mortgage because they like the certainty of a set monthly principal and interest payment throughout the life of the loan.  This is especially true for homebuyers who plan on owning their property for a long period of time. Fixed rate mortgages are also great options when rates are low because they protect your from any increases that could take place in the future.  ARMs will occassionally have better starting rates, so these can be attractive for homebuyers who do not plan on retaining their property for more than a few years. There are also home buyers who are willing to take the risk that mortgage rates may go down in the future, and they are willing to take the risk that the ARM may give them a better rate once their loan starts to adjust. The home buyer needs to weigh the pros and cons of each option to determine which one best suits their needs.

Private mortgage insurance (PMI) policies are designed to reimburse a mortgage lender up to a certain amount if you default on your loan. Most lenders require PMI on loans when the borrower makes a down payment of less than 20%. Premiums are usually paid monthly, but there are options to have the premium built into the interest rate. Except for some government loans, you can request to have the PMI cancelled once you have 20% equity in your property based on your initial loan transaction, and the lender will drop the mortgage insurance automatically once you have 22% equity and you’ve made timely mortgage payments. The loan servicer will have the detailed requirements for canceling the mortgage insurance once you approach those milestones.

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