• The loan amount is less than 80% of the value of your home.
• The loan amount does not exceed the current conforming conventional loan amount of $300,700.

Using the equity in your home to pay off other bills can be a smart thing. If you're in the process of refinancing, consider taking some money out to pay off credit card bills, auto loans and any debt which costs you interest that is not tax deductible*. You may also be able to write off the interest you pay*.

Q. When should I "lock in" an interest rate?
We cannot predict interest rates – nobody can. But historically, rates go up much faster than they come down. So if you're thinking about buying a home or refinancing – get the good rate now (you can always refinance later if rates drop again). Any in-the-near future drop in interest rates may not be drastic enough to impact your monthly payment. Of course, every situation is different, so it's important to discuss all of your options with me.

Q. Should I pay points to get a lower rate?
If you're refinancing, paying points may not be your best option. Points paid on a refinance can be deducted from your taxes* only in small increments - 1/30th a year for a 30-year mortgage – meaning it could be several years before your lower rate makes up for the points you pay. If you're buying a home, however, points paid are a deductible expense* for that year.

Q. Are there really loans with "No Closing Costs"?
There are few loans that truly have no closing costs. Sometimes lenders will not charge application fees and agree to pay the appraisal and title fees, but they may increase the rate. Lenders can also roll the costs into the amount of your loan. So, because you're not paying costs up front, it's called "no closing cost" loans. While slightly increasing your mortgage might be acceptable to you, keep in mind that it's not really a cost-free loan.

Q. How much money will I need to bring to closing?
A general guideline is that you'll also need 2% of the purchase price of the home for prepaid interest to cover the time between the date you close and your first mortgage payment. Some states may also require prepayment of property taxes. When refinancing, however, your old mortgage will most likely have money in escrow that can cover these costs. Some borrowers get short-term loans while this escrow transfers back to them, but most pay the money at closing knowing they'll get it back when their escrow is returned.

Q. How long does it take to refinance?
Refinancing normally takes between 30 to 60 days, or as soon as 15 depending on a few things. Do you have a recent appraisal? Are you in an area that appraisers can get to easily? Are there plenty of comparables in your neighborhood? Often times, the appraisal is what takes the longest to obtain. And during refinancing booms, appraisers can be difficult to schedule. Also, have your paperwork ready. Being prepared helps tremendously to speed the process.