FAQs

When comparing lenders, focus on fees they control, such as credit report, origination, underwriting, processing, discount points, admin, LLC review, and appraisal fees. These are found in sections A and B of the loan estimate. To simplify comparison, obtain your first rate quote. If satisfied with the payment at your target rate, ask other lenders to quote the same rate, allowing for easy comparison of total lender fees.

Flex term loans offer fixed-rate options beyond traditional 30, 20, 15, and 10-year terms. Our lenders provide loans for any preferred increment. For example, if you have 17 years remaining on a 20-year commercial loan for a residential investment property, we can offer a customized 17-year fixed loan to match your current term, rather than restarting with a new 20-year loan or switching to a 15-year fixed.

VA loans are indeed assumable. A qualified buyer can take over the seller's existing VA mortgage, including its interest rate, balance, and terms. This feature can be particularly advantageous in a high-rate environment, potentially offering significant savings to the buyer.

A mortgage recast, also known as re-amortization, is a method to reduce monthly mortgage payments without refinancing. The process involves making a substantial lump-sum payment towards the loan's principal, after which the lender recalculates monthly payments based on the new, lower balance. The interest rate and loan term remain unchanged. This results in lower monthly payments, less interest paid over the loan's life, and doesn't require a credit check or appraisal. However, it typically incurs a small fee.

To determine if refinancing is beneficial, conduct a break-even analysis. This involves comparing the total refinancing costs (including closing costs and fees) against the monthly savings from a lower interest rate or shorter loan term. Calculate the break-even point by dividing total refinancing costs by monthly savings. This result, in months, indicates how long it will take for the refinancing benefits to outweigh the costs.

The choice between a 30-year and 15-year fixed mortgage depends on your financial goals, income stability, and intended duration of homeownership. A 30-year mortgage offers lower monthly payments and more flexibility, but comes with a higher interest rate and more total interest paid over time. A 15-year mortgage typically has a lower interest rate and builds equity faster, but requires higher monthly payments. Consider your budget, income stability, long-term financial goals, and how long you plan to stay in the home when making this decision.

Bernard Guste holds a mortgage license in Louisiana. However, through partnerships with peers, assistance can be provided for loans in all states except New York and Massachusetts.

For FHA loans in Louisiana, we can accommodate credit scores as low as 500, provided there's a higher down payment, typically at least 10% of the purchase price.

A reverse mortgage is a financial product designed for homeowners aged 62 or older. It allows them to convert a portion of their home equity into cash without selling their home or making monthly mortgage payments. The loan can be received as a lump sum, monthly payments, a line of credit, or a combination. Repayment is due when the homeowner sells the home, moves out permanently, or passes away. At that point, the homeowner or their heirs can repay the loan or sell the home to settle the debt.