Start with the goal. Then compare the loans.
You do not need to know the name of a loan program before you call. These are the questions that help shape the conversation.
Buying a home
Start with a payment you can plan around. Discuss your down payment, closing costs, income documentation, and the property you have in mind before choosing a loan.
Questions to bring
- What would my payment include beyond principal and interest?
- Which loan types fit my situation?
- What is needed for preapproval, and what still needs final approval?
Refinancing a mortgage
A refinance replaces an existing loan with a new one. Compare the closing costs, new payment, loan length, and how long you expect to keep the home. A lower payment does not necessarily mean a lower total cost.
Questions to bring
- How much will it cost to refinance?
- How does the new term change the total interest I could pay?
- How long would it take for any monthly savings to cover the costs?
Using home equity
Home equity may help fund a renovation or another planned expense. A home-equity loan, line of credit, and cash-out refinance work differently. Each adds debt secured by your home, which may be at risk if you cannot repay.
Questions to bring
- Would this replace my first mortgage or add another payment?
- Is the interest rate fixed or adjustable?
- What fees, repayment terms, and risks should I compare?
Understanding reverse mortgages
A Home Equity Conversion Mortgage (HECM) is a reverse mortgage for eligible homeowners age 62 or older. It is still a loan: interest and fees add to the balance. Borrowers must meet occupancy requirements, maintain the home, and pay property taxes and insurance.
Questions to bring
- How would the growing balance affect my remaining equity?
- When does the loan become due?
- What counseling, costs, and ongoing responsibilities apply?
Loan availability and eligibility depend on the lender, program, property, and borrower. This information is educational, not a loan offer or commitment to lend. Ask Eric about current options and requirements.
Learn more from the Consumer Financial Protection Bureau and HUD’s HECM guidance.
Put your questions on the table.
Talk with Eric about your plans, your timeline, and what you want to understand.