by Christopher J. Iosua
During the past six months the media has made
the current condition of the mortgage industry very clear. Many large national
banks have closed their doors and those that have survived have severely
tightened their lending guidelines.
However, for the most part, financing for your home improvement projects
is alive and well! The challenge has and continues to be finding the
appropriate mortgage program to fit your individual situation. The following
list of programs will provide you with a comprehensive overview of potential options
to finance your home improvement projects.
Home Equity Lines of Credit
This program is frequently used for
smaller projects.
Pros: No closing costs and very low
initial rates
Cons: Rate adjusts based on movements in
prime rate.
Fixed Rate Second Mortgages
This program is frequently used for
slightly larger projects.
Pros: Can often be found with no closing
costs. No interest rate risk like the lines of credit
Cons: Rates are typically higher than a
conventional first mortgage. Terms are usually only up to 20-25 years resulting
in higher payments.
1st
Mortgage Refinance
This program is frequently used for larger
projects.
Pros: Lowest payment option
Cons: Only makes sense if you are offered
a rate at or close to your current rate without paying ANY closing costs.
Construction Loan
This program is frequently used for very
large projects including large additions and tear down\ rebuilds.
Pros: Provides funds based on the future
value of the home. This typically results in access to much larger amount of
financing.
Cons: Most cumbersome program to utilize.
Funds are not given all at once, rather on a schedule of 5-8 pre-determined
disbursements.
Christopher began his Real Estate career in the late 80's
with Merrill Lynch's real estate division. As a top producing Real Estate Agent
he developed his skills & basic understanding of the Real Estate
Industry. In 1989 he embarked on what
would become the beginning of a long career in the residential & commercial
mortgage finance industry. In 1995 he founded The Mortgage Connection, Inc.
& currently remains the company President. With closed loan volume
exceeding half a billion dollars, The Mortgage Connection, Inc. has become a
well respected source for residential & commercial mortgages
nationwide. Christopher is also a former
member of The Board of Directors for the Massachusetts
Mortgage Association.
To reach Christopher, please call 978-371-3242 or visit www.mortgageconnection.com