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loan programs
 What are your goals?
Do you have a special circumstance? Are you planning construction or home improvements? Brodhead has plenty of options for all of these situations and more!
programs by goal bi-weekly payments to pay off your mortgage earlier - After you close, you can make payments every two weeks instead of every month.
- This will substantially reduce the time it takes to pay off your mortgage.
- A 30-year mortgage could be paid off in 21 years, a 20-year in 14, or a 15-year in 13!
refinance to pay off your mortgage earlier - Refinancing to consolidate debt will free up money each month.
- This money can be applied to your mortgage, paying it off faster.
- A shorter term of repayment usually translates into a better interest rate.
- This is for when you're comfortable with your monthly payments.
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refinance to change your loan type - converting an ARM to a fixed mortgage
- When rates are low, you can lock them in by refinancing.
- The stability and security of a fixed loan is another advantage.
- converting a fixed mortgage to an ARM
- When rates are high, but you expect them to drop again, refinancing can free you from being stuck with a high rate for the life of your loan.
- The periodic interest rate readjustments of an ARM will lower your payments when rates fall.
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refinance to lower your monthly payments - Restructuring your loan can get you a lower interest rate, which will lower your monthly mortgage payment.
- Refinancing to change your loan type can also result in a lower rate and monthly payments.
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refinance to consolidate debt - Many more people have equity in their homes today.
- This is from the increased appreciation in real estate in the last 4 or 5 years.
- This equity can be used to refinance.
- You consolidate your debt from car loans, second mortgages, credit lines, student loans, credit cards, etc.
- You replace those high-interest loans with a mortgage, which has a lower rate.
- This often results in tax savings.
- Mortgage loans are tax-deductible, but consumer loans (e.g. car and personal loans) aren't.
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cash-out refinance - Your mortgage is refinanced at a higher amount than your current loan balance.
- You take out the extra money in cash for your personal use.
- This may be your least expensive option, since house loans are tax-deductible, but others often aren't.
- For some, using their home as equity is the only way to borrow money.
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programs by circumstance first-time buyer loans - These are subsidized by the government.
- Your down payment will be lower.
- You may get lower rates.
- It's easier to qualify for these.
- But you may have a recapture tax if you sell the house too early.
- You may be subject to income and property value limitations, too.
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no income loans - Brodhead is a leader in this category, offering 7 different loans of this kind!
- You won't need to produce your W2 or other income verification.
- These loans are recommended for self-employed borrowers and others who choose to not report all or some of their income.
- You provide only your name, address, SSN (for access of your credit report), & contact information for an employer, if there is one.
- Banks, on the other hand, need full documentation. They won't do this type of loan.
- Ideal credit is required, though.
- Your approval is based on your credit history, the appraised value of the house, and the size of your down payment.
- Approval is quick.
- Rates are usually higher.
- The down payment required is generally higher.
- But Brodhead offers many programs where you put - not 20% - but 10% or even less down!
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no point, no fee loans - You pay no closing costs:
- no appraisal fees, title fees, or junk fees
- The program may also cover title insurance, escrow fees, settlement fees, appraisal, recording fees, notary fees, etc.
- no lender costs
- It's like paying negative points.
- On a loan with a cost of -1 point, you have 1% of the amount of the loan as credit towards your closing cost.
- Learn whether you should pay points.
- Your rate and monthly payment will be higher.
- If you keep the loan long enough (say, around 5 years) and rates never drop for you to refinance, you will pay more than if you had paid points, since you have higher mortgage payments.
- Useful when rates are declining.
- If rates drop, refinancing this way will always save you money.
- There's no need to do a break-even analysis, since there was no up-front cost that needs to be recovered.
- Some have used zero-point/zero-fee loans to refinance their ARM every year.
- There's probably no disadvantage to this type of loan if you plan to sell your house in less than 2 or 3 years.
- There may be a pre-payment penalty, though.
- If you refinance the loans early, the servicer and the investor who funds the loan could lose money.
- Avoid no-fee home equity loans with pre-payment penalties if you're planning to sell or refinance in the next 3-5 years!
- Also make sure the lender pays for your closing costs from rebate points and not by increasing your loan amount.
- Your new loan amount should be equal to your old one.
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non-conforming/imperfect credit loans - These are mortgage loans that aren't eligible for purchase or securitization by one of the government-sponsored enterprises, e.g. Fannie Mae, Freddie Mac, Ginnie Mae, etc.
- Your loan can be disqualified based on the loan amount, restrictions on the property type (e.g., the number of units or zoning requirements), problems with your credit, the type of loan, the length of repayment, etc.
- These need not be supported by full documentation, nor near perfect credit scores.
- Brodhead specializes in both conforming and non-conforming loans! Most companies won't bother with borrowers with low credit scores.
- If you pay this mortgage on time, you can reestablish your credit.
- The rates will be higher.
- The terms may be less favorable.
- It may become harder for you to get long-term fixed loans.
- Loans of this type may have prepayment penalties.
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jumbo mortgage - For home loans that exceed the limit set by Fannie Mae and Freddie Mac.
- Piggyback loans are another solution.
- The interest rate is usually higher than that for a conventional mortgage.
piggyback loans - 80-10-10 or 80-15-5
- You get an 80 percent loan-to-value first mortgage.
- The mortgage is for 80% of the appraised or sale value of the home.
- You get a 10 or 15 percent home equity loan.
- Your down payment is the remaining 10 or 5 percent.
- Since the first mortgage amount is reduced:
- for an expensive home, this is an alternative to a jumbo mortgage.
- you might not need to make PMI payments, even with only 5 or 10% down!
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bridge loans - These are for borrowers who must close on a new property before they will sell their current property.
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home improvement & construction programs home improvement loans - These are meant to increase the value, i.e. improve the quality and/or appeal, of your home.
- options:
- first mortgage
- home equity loan
- after value loan
- and others
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construction loans - These are short-term, interim loans financing construction.
- When the house is built, the loan will become a normal mortgage.
- one close construction loan
- One loan is secured that will fund all of the planned construction.
- You'll get all of the money in one payment.
- This is for borrowers with ideal credit.
- two close construction loan
- You'll get two loans, each for a portion of the construction.
- Only the amount of the first loan you'll get up-front.
- You'll get the amount of the second loan as the work progresses.
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