What’s the Difference between a Mortgage Credit Score and a Consumer Credit Score?

Many folks are unaware that there are mutliple credit scoring models out there. This video takes a quick look at the difference between your mortgage credit score and your consumer credit score.

How Do Interest-Only Payments During Construction Work?

Many are confused on exactly how interest-only payments during construction really work. Here are the basics: At closing, there may be multiple disbursements: 1. Your builder may request an initial disbursement. This is usally 5 - 10% of the cost to build. 2. You may be purchasing your lot or land, or you may be paying off your land. 3. You may be using equity you have in your lot to pay your closing costs. Calculating the Monthly Interest Payments: 1. Monthly period ends on the 15th of the each month. 2. The balance at that time will dicatate the amount of the monthly interest payment due. 3. Statements are generated and delivered to the client by the 20th. 4. Interest Payments are due on the 1st of the month, and considered late if not received by the 16th. Draws may not be taken every single month a home is under construction; therefore, the interest payment could remain the same for more than a single month.Once your home is complete, if you are in a single-close construction to permanent loan, your loan will convert to a fully-amortizing payment, which includes principal and interest, and if you are escrowing, property taxes, homeowners insurance, and any applicable private mortgage or flood insurance payments.

Student Loan Savings Calculator

CLICK the Play button on the video above to access the calculator (CLICK the Question Mark button to the right of each question for a deeper explanation). 1. Enter your Annual Income (before Taxes) 2. Enter your FEDERAL (not private) Student Loans Balance 3. Enter you Monthly Minimum Credit Card Payment(s) 4. Enter your Monthly Car Payment(s) 5. Enter the Total Monthly Payments for any other Monthly Installment Loans 6. Enter the Average Student Loan Interest Rate on Your Student Loans (if you're not sure, use 6.5%) 7. Enter the size of your family. Any available savings will appear in the middle of the screen. Schedule a Call if you need more information!

Student Loans Resume on October 1st – What Are Your Options?

If you currently have outstanding student loans, the Financial Responsibility Act of 2023 will likely negatively impact you directly, and it may also directly impact your ability to buy your first home, upgrade to a bigger and better home, or access the equity in your existing home to find relief for your monthly budget. It's likely that you haven't made a payment on your student loans since 2020. With rising inflation, higher credit card and auto loan debt, the impact could be very damaging. If you're currently pre-approved to buy or refinance, this could invalidate your pre-approval. But it's not all doom and gloom - there are ways to mitigate the impact of this "unpausing" on your monthly payments. ****The calculator to the right (if you are on a desktop computer), or below this (if you're on your Smartphone), will help you determine if you can lower these monthly student loan payments before they even start in October. Before using the calculator, I recommend logging into your student loan servicer's website, so you know what your monthly payments will be on your loans when they resume October 1st. I have partnered with LoanSense to help you take advantage of the federal student loan options available to you. LoanSense is a consumer advocacy group that helps student loan borrowers take advantage of these programs to save on their monthly payments, or to get them on the right track to loan forgiveness options that may be available for their loans. Here are examples of student loan options: 1. Standard Repayment Plan - Payments are a fixed amount that ensures your loans are paid off within 10 years (or within 10-30 years for consolidation loans). This is not an income-driven plan. It is not a good option for those seeking Public Service Loan Forgiveness (PSLF). 2. Graduated Repayment Plan - The graduated repayment plan starts with lower payments that increase every two years. Payments are made for up to 10 years (between 10 and 30 years for consolidation loans). This is not an income-driven plan, which means you will not qualify for Public Service Loan Forgiveness or interest relief as you would on an income-driven repayment plan. 3. Extended Repayment Plan - Payments may be fixed or graduated and will ensure your loans are paid off within 25 years. If your extended plan is graduated, then payments will rise over time. You will pay back significantly more interest than on a 10-year plan. This is not an income-driven plan, which means you will not qualify for Public Service Loan Forgiveness or interest relief as you would an income-driven repayment plan. 4. Revised Pay as You Earn Repayment Plan (REPAYE) - This is an income-driven plan. Your monthly payments will be 10 percent of your discretionary income. Payments are recalculated annually based on your updated income and family size. Unlike PAYE, though, the monthly payment can exceed the 10-year standard plan payment. 5. Pay as You Earn Repayment Plan (PAYE) - This is an income-driven plan. Your monthly payments will be 10 percent of discretionary income, but never more than you would have paid under the 10-year Standard Repayment Plan. Payments are recalculated annually and are based on your updated income and family size. 6. Income-Based Repayment Plan (IBR) - This is an income-driven plan. Your monthly payments will be either 10 or 15 percent of discretionary income (depending on when you received your first loans), but never more than you would have paid under the 10-year Standard Repayment Plan. Payments are recalculated annually based on your updated income and family size. 7. Income-Contingent Repayment Plan (ICR) - This is an income-driven plan. Your monthly payment will be the lesser of 20 percent of discretionary income or the amount you would pay on a repayment plan with a fixed payment over 12 years, adjusted according to your income. Payments are recalculated annually based on your updated income and family size. 8. Income-Sensitive Repayment Plan - This is an income-driven plan. Your monthly payment is based on annual income, but your loan will be paid in full within 15 years. 9. Deferment - You are in deferment on your 6-month grace period. Interest accrues during this period. This means your balance will increase, and you’ll pay more over the life of your loan. Any period of deferment will not count toward loan forgiveness. We recommend you enter into an income-driven repayment plan to lower your payment. 10. Forbearance - You are in forbearance, and interest accrues during this period. This means your balance will increase, and you’ll pay more over the life of your loan. Any period of forbearance will not count toward loan forgiveness. We recommend you enter into an income-driven repayment plan to lower your payment.

Cost of Waiting to Build

In this quick two-minute video, I wanted to put some numbers to analyze the Cost of Waiting to Build. I know many of you are interested in building, but are waiting for interest rates to come down. I've put together some numbers to compare and see what happens if interest rates drop by 1%. You'll see the net impact it could have for someone looking to build right now versus waiting. This will hopefully give you some food for thought on whether it's the right move to wait or move forward now.

Can I Finance Both My Land and Home with Construction Financing?

Many people ask me if it's possible to finance both the purchase or payoff of their land plus the cost to build using construction or construction-to-permanent financing. Here's the answer!

How a Mortgage Credit Inquiry Impacts Your Credit Score When Getting Pre-Approved

Are you ready to get pre-approved for a mortgage, but concerned about the impact a credit pull will have on your credit score? This minute plus video explains what the real effect is.

Ready to Build but Don’t Know Where to Start?

Here's a short video to explain the Top 3 steps you need to take if you want to build your custom dream home!

Portfolio Products for Outside the Box Financing Stategies

OneTrust Home Loans offers one of the broadest product mixes of portfolio loan products available anywhere in the country, for those that need a mortgage loan with flexibility that may not fit into standard mortgage underwriting guidelines.