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What Clients Ask The Most

What You Should Know

We always make sure our clients are satisfied and totally onboard with everything we do. If something isn’t clear after going through our site, take a look at these commonly asked questions regarding mortgages, refinancing, and other related subjects. Still can’t find what you need? Feel free to contact us for more assistance and information.

How do I buy a house with bad credit?

The thought of buying a house can be overwhelming. Starting the home buying process with bad credit can make it seem nearly impossible to get a loan.


But did you know there’s such a thing as bad credit home loans? Your credit might not be as much of a roadblock as you think.

Most borrowers don’t know this, but there isn’t a specific minimum credit score required by any lender to buy a house.


The Catch-22 is a conventional mortgage lender is free to set their own requirements when it comes to your credit score.


And though government-backed loans give mortgage lenders some peace of mind, they still have credit score requirements, even if they are usually much lower.


But if you have a credit score lower than 500, you might find getting a mortgage a bit hard and will probably need to focus on increasing your score first.

When should I refinance?

Your mortgage may be one of the biggest and most important investments you make in your entire life – and it can also help you reach your future financial goals. A mortgage refinance can be a wonderful tool to help you reach those goals sooner.

Refinancing can allow you to change the terms of your mortgage to secure a lower monthly payment, switch your loan terms, consolidate debt or even take some cash from your home’s equity to put toward bills or renovations.


Let’s take a deeper look at some of the reasons you may want to refinance.

1. You Need To Change Your Loan Term

2. You Need Cash To Pay Off Debts

3. You Want To Do Home Improvements Or Renovations

4. You Want To Allocate More To Retirement Saving

5. You Want to Convert An ARM To A Fixed-Rate Mortgage

Whether you want to lower your monthly payment, adjust your loan term or access cash for home improvements or to pay off debts, a refinance could help you move closer to your financial and personal goals. PHILANYA can help you look at your options!

Should I get a fixed rate or adjustable rate loan?

One major decision you’ll have to make when you’re about to buy a home is whether to get a fixed-rate mortgage or an adjustable rate mortgage (ARM). Let’s look at some of the differences and similarities between the two.

ARMs are 30-year loans, meaning you’ll pay back the money you borrowed over 30 years. An ARM interest rate changes after the fixed period expires. At the beginning of your loan, you’ll get a low, introductory interest rate that’s below market rates. The low rate will stay the same for a certain period of time, with the most common being 5,7 and 10 years. After the fixed-rate period ends, your interest rate will adjust up or down based on an index.

Mortgage lenders use a special series of number structures to tell you about your loan and interest periods. For example, the most common type of ARM is a 5/1 loan. The first number tells you how long the fixed interest rate lasts. The second number tells you how often your interest rate can change yearly.

A fixed-rate mortgage has the same interest rate throughout the life of your loan. Your monthly payment of principal and interest won’t change, though your overall payment can change, depending on how your taxes and homeowners insurance fluctuate.

A fixed-rate mortgage is the most popular type of financing because it’s the most predictable type of loan.

Don’t hesitate. Get in touch for direct advice on home loans and refinancing options.