Posts by Alexander Jaffe
Prepayment
Prepaying will cut down on life of loan interest and pay off your loan more quickly. That’s because interest is charged each month based on your outstanding balance. And so by paying your balance down early, you’re making subsequent monthly payments allocate more to principal and less to interest. Prepaying does not lower your monthly…
Read MoreEscrow Analysis
Expect an escrow analysis once per year, mailed to you. Please be sure to read it to understand how your mortgage payment is changing. The escrow analysis looks back at property tax and insurance costs incurred over the last year. It’ll recalculate what should be your monthly payment to your escrow based on that. Escrow…
Read MoreUnsecured family loan
Both FHA loans and Home Possible loans (but not Home Ready loans) allow a relative to provide an unsecured loan for a buyer’s down payment or closing costs. Fannie Mae disallows loans from family members unless it’s secured against collateral. Learn more: https://alexjaffe.com/family-lending For a Home Possible loan, the loan term needs to be greater than…
Read MoreBank Statement Underwriting
Our bank statement program allows us to use 12 or 24 months of bank statements in lieu of tax returns to calculate income. This can be a helpful alternative for self-employed purchasers! This is a conventional 30-year fixed loan and is available starting with a 20%+ down payment. Two years of being in business, self-employed,…
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