Here are answers to some commonly asked questions. If you have a question that isn't listed, call us at 480-227-3238.
I can't afford 20% to put down on a house. +
It shouldn't be a problem. There are many programs available today that require less than 5% down. The best thing to do is call us and we'll find the right program for you.
Do you offer custom loan programs? +
Yes. Loan programs change every day and we find the best scenario for each client. Unlike big banks, which are restricted to their own products, we have access to many lenders and find the one that best fits your needs.
Can I use some of my IRA or 401(k) for a down payment? +
Yes, you can, though the rules around this change often. Your best bet is to contact your accountant, who can walk you through your options.
What's the difference between a fixed and an adjustable rate mortgage? +
With a fixed rate mortgage, the interest rate and monthly payment stay the same for the entire term (traditionally 15, 20 or 30 years). With an adjustable rate mortgage (ARM), the rate fluctuates with an index after an initial discounted period. ARMs typically cap how much and how often the rate or payment can change, and some hybrids convert from fixed to adjustable after a set number of years.
Is a fixed or adjustable rate mortgage better? +
It depends on current rates, your outlook on where rates are headed, and your appetite for risk. When rates are low, a fixed rate is usually the safer bet for most buyers, since ARM teaser rates tend to adjust upward over time. If rates drop significantly after you take a fixed loan, refinancing later is always an option.
What is private mortgage insurance (PMI)? +
PMI reimburses a lender if you default on your loan. Most lenders require it when your down payment is less than 20%. Premiums are usually paid monthly or financed. Except on some government or older loans, you may be able to drop PMI once your equity reaches 22% and you've made timely payments — your servicer sets the exact requirements.