Half Your Mortgage
What Debts Are Calculated in DTI Ratios
Mortgage payments (Principal, Interest, Taxes and Insurance) are contained in the DTI calculation, but auto insurance and life insurance payments, 401(k) contributions, income tax deductions and college or private school tuition payments are not.
Can K-1 Be Used To Qualify For HELOC
A Form K-1 shows money paid to a person from a business, including the percentage of ownership that the person owns too. Banks can use K-1s to determine the total qualifying income (minus any losses) for a home loan.
Can The Home Loan Be Recast To Lower Payment & Interest
Yes. A loan recast is when the lender will reamortize the loan with the new (lower) balance. It is typically used when one has paid a lump sum toward the outstanding balance, in turn reducing the remaining monthly payments and interest. When a loan ...
Can A HELOC Reduce The Monthly Minimum Payments
Yes, it can reduce the monthly minimum payments and as time goes on the monthly minimums will continue to decrease as the principal balance is lowered. In fact, most HELOCs only charge an interest-only payment that is typically much less than a ...
Where or To Whom Does One Pay Property Taxes
The local County Treasurer is responsible for processing all property tax assessments and receiving payments.
Where or To Whom Does One Pay Homeowner's Insurance
Typically the bank will setup an escrow account to pay this, but with a HELOC the insurance is paid directly to the servicing insurance company. One will need to ask where payments can be sent and if there are automatic payments that can be made as ...
Can I Get A HELOC If My Home Is Paid Off
Yes! In fact, obtaining a home equity line of credit (HELOC) is much easier if the mortgage has been paid. Then its just about accessing the equity.
How Often Can A Homeowner Refinance Their Loan / HELOC
With conventional loans, one can often refinance immediately as there are no seasoning periods. For HELOCs and cash out refinances the seasoning period is typically 6-12 months.
Why Would Liquid Assets Needed for HELOCs
Liquid assets are things like Checking and Savings Accounts, Stocks, Bonds, CDs, Mutual Funds, Money Market Accounts, EFTs. These liquid assets would be used towards building up more equity for the property OR to pay off some personal debts, ...
Does 401(k) Proceeds Count Towards Monthly Income
Yes, a 401(k) can be used for a down payment and count as income for a home loan. The 401(k) will either be calculated based on the lump sum amount and then divided by 24. The lender calculates what a lump sum figure would be when dividing it over 2 ...
Do Hard Money Loans Show On Credit Reports & Affect DTI Ratios
Most hard money loans, such as fix and flip loans, will not show up on a personal credit report; however, this is not always the case, and this should be discussed with the lender.
How To Qualify For HELOC with Bulletproof Trust (No Taxable Income)
The Bulletproof Trust and Half Your Mortgage may be the only two programs we offer that do not compliment each other. The reason for this is because a borrower must rely on a lender to supply the home loan, and they determine almost everything based ...
Can One Qualify For A HELOC If All Income Goes Into A Trust
No, only money that does not go into a trust can be counted towards one's gross income. When redeeming in lawful money, lenders only counts 25% of those funds.
Can An Irrevocable Trust Obtain a HELOC
Perhaps, but the majority of banks will only work with revocable trusts. The few that will offer financing, either a mortgage or HELOC, will require the trust documents allow for taking out of a home loan against the real estate owned by the trust. ...
How Does Financing Work for Half Your Mortgage
We currently have (2) ways to pay: a full one-time payment via credit card(s) or 24-months pre-approved financing for up to $25K (e.g. guaranteed approval for good, bad, no credit). Each lender will require a credit check to qualify for a loan. ...
Do All Home Loans Have Escrow Requirements
Escrow accounts are a requirement on virtually all home loans, except in cases of a large down payment. FHA loans require all borrowers to have an escrow account, no matter the down payment. For VA loans, 10% down and a strong credit profile is ...
How Do Deferred Student Loans Affect One's DTI (Debt To Income) Ratio
Only when a loan is reporting as a $0 payment to the credit bureaus will it not affect a debt-to-income ratio. If it is reporting as deferred then a percentage of the balance (i.e. 0.5% or 1%) is used to determine the monthly minimum payment. If a ...
Can Someone Buy A Home If Paid Only In Cash
It is possible to obtain a home loan despite being paid only in cash. Reporting this cash income on tax returns will be sufficient evidence for the lender as proof of income; however, some lenders will require a higher credit score and offer ...
What Is The Minimum Income Required To Buy A House
There is no minimum income required to purchase, rather it's proving to the lender that one receives sufficient recurring income to cover the loan payments. To find out how much house one's income can afford, visit this calculator to learn more.
Can Someone Buy A Home With No Reportable Income (Missing 2 Years of Income Statements)
Yes, it’s possible to get a home loan without verifiable / reportable / taxable income (primary residence only); however, it requires a great credit score, a large down payment, low debt-to-income ratio, and substantial net worth / assets to support ...
Joint Home Loan Application (One Has Good Credit - The Other Has Bad Credit)
If one person has good credit and the other spouse has bad credit, most think to just apply using only the good credit score. The trouble is, submitting only one partner’s information on a loan application will have the underwriters considering only ...
Why Do Anti-Steering Laws Prevent Someone From Telling Someone Which HELOC & Bank Is Best
Anti-steering laws regulate and prohibit industries from steering individuals to use their owned or affiliated entities regarding banking, prescription drugs and many other life-changing decisions. These laws are the reason an advisor cannot ...
What Is a Debt-To-Income (DTI) Ratio & How Is It Calculated
Before a lender approves any mortgage application, the underwriting department verifies one's ability to repay the loan first. The mortgage isn't the only payment that a borrower will have - there are car loans, student loans, personal loans, credit ...
What Is A Front-End Ratio / Housing Ratio
A front-end ratio or housing ratio divides one's total monthly mortgage payment, also known as a PITI (Principal, Interest, Taxes and Insurance), by one's monthly income. For example a monthly mortgage payment of $1,000 with a gross monthly income of ...
Combined-Loan-to-Value (CLTV) vs Loan-to-Value (LTV) Ratio
CLTV and LTV are both similar figures describing how much equity one has in their home versus how much is still owed on the mortgage. LTV only takes into account the first mortgage, while CLTV factors in the first mortgage and any subsequent home ...
What Does A Title Company Do
The title company's job is to find out if the property title is “unencumbered”, meaning no one other than the seller has ownership rights to it (i.e. no liens, no debts, no alternative deeds). Contact the title company after a bank HELOC is chosen to ...
Can a Veteran Affairs Loan (VA), United States Department of Agriculture's Loan (USDA) or The Federal Housing Administration Loan (FHA) Be Refinanced Into a HELOC
Yes, every home loan can be refinanced into a HELOC.
Mortgage Insurance (MI) + Private Mortgage Insurance (PMI) vs Mortgage Protection Insurance (MPI) + Mortgage Insurance Protection (MIP)
Both Mortgage Insurance (MI) and Private Mortgage Insurance (PMI) are a type of mortgage insurance one might be required to pay for with a conventional mortgage, which only protects the lender should the borrower stop making payments on the loan. ...
What Is The Monthly Payment For The HELOC
That depends. An outstanding balance will have a minimum monthly payment, which will fluctuate each month during the draw period because the payment is based on a few different factors, including: The total amount of funds withdrawn or transferred ...
When Will The Account Post The Payment Made For The HELOC
Payments are credited to the account according to the lender's terms and conditions. When payment is made online, it may take up to 1 business day to credit. When payment is made by mail or phone, the payment is credited when the lender receives them ...
Where Can We See Payments Made for The HELOC
All transactions and payment history can be found online through the lending institution's online banking portal.
Can A Payment Be Skipped With A HELOC
No, one must make at least the minimum monthly payment.
How Is The Annual Percentage Rate on The HELOC Determined
The HELOC APR is typically a variable interest rate and can change as often as monthly based on the index rates (e.g. Prime Rate). Some APRs may be a fixed rate determined at the time the feature is set up.
Why Did The APR Change on The HELOC
The APR on a HELOC is often tied to an index (e.g. Prime Rate). When these rates change, so does the HELOC's APR.
How Often Does The APR Change For The HELOC
It could change as often as monthly depending on the changes to the United States Prime Rate. These changes in APR are always effective on the first day of the monthly statement period and remains effective for the entire statement period.
Is There An Annual Fee For Every HELOC
Yes, virtually all HELOCs have an annual fee. Thankfully this fee is usually $100 to $250 (highest ever seen was $1000).
Can The HELOC Loan To Value Be Changed Later
For most lenders, this is a 'yes' but any increase/decrease in the credit limit will require a new application to be completed.
How Can Someone Close Their HELOC Account
Talk with the loan officer or lender to make sure there are no early penalty or fees. Once there is a $0 balance for the HELOC, visiting a branch or calling the lender's Customer Support will provide an employee who can provide assistance in closing ...
Can Someone Keep Their HELOC After Selling The Home
No. When the home is sold, the loan must be repaid in full. Most homeowners arrange to pay off their HELOC at the closing of the home's sale. One should not borrow funds from the HELOC once the sales process has begun.
We Need Help Lowering Our HELOC Payments Due To Loss / Income / Medical Issue
One can get the HELOC payment down a bit by contacting the lender and asking them to recast the loan by stating, “Can this loan be recast with the remaining principal balance, over a 30 year term, so it drops the minimum payments?”
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