There are a wide variety of loans to suit almost every need. Whether you are a first-time homebuyer, investing in a second home or vacation property, need commercial or industrial space, want to remodel your home or pay for the kid’s college tuition, Michael Ryan & Associates can help you find the key to your perfect mortgage. 

The most common types of loans are:

     ü      Home Equity Line of Credit (HELOC)

     ü      Home Equity Fixed Rate Loans

     ü      Mortgage Refinancing

     ü      Reverse Mortgages 

Scroll down to learn more about each of these popular options.

Home Equity Line of Credit

There are two common types of Home Equity Loans: a Home Equity Line of Credit also called a HELOC, and a Home Equity Fixed Line of Credit. One may be the key to your perfect mortgage solution.

What is a Home Equity Line of Credit (HELOC)?

A Home Equity Line of Credit is like a credit card. You can borrow money up to your credit limit, and you only get charged interest on the portion that you borrow. You can pay down the balance, and then reuse the credit. The amount of the loan is based on several factors including the current equity your home, income and credit score.

What are the primary advantages of a HELOC?

One of the major benefits of a Home Equity Line of Credit is that you get to choose exactly what you want to do with the funds. This type of loan is a smart way to consolidate debt or pay for major expenditures. Accessing the funds from your HELOC is easy. Most allow you to write a check, use a credit card, or make a cash withdrawal at a bank. HELOCs are usually 100% tax-deductible (check with your tax advisor). 

What are common uses of a HELOC?

There are endless possibilities of how you can spend the funds from a HELOC. One of the advantages of this type of loan is that you get to decide exactly how to spend the funds. Common uses include:  

     ü      Home Remodeling

     ü      Vacation Financing

     ü      Bill Consolidation

     ü      Purchasing a Car, Boat or RV

     ü      Financing Private Tuition or College Education

     ü      Paying Student Loans

     ü      Financing a Wedding

     ü      Financing IVF treatments and adoptions

     ü      A Stand-by Emergency/Rainy Day Fund 

What are common rates, fees and limits for a HELOC?

There are a wide variety of HELOC lenders, and each lender has different programs, fees and rates. The key to the amount of the Home Equity Loan you will receive, as well as the pricing, is based on factors including the current equity your home, income and credit score. Interest rates for HELOCs can be below prime rate, and others offer a fixed rate feature on all, or a portion, of the outstanding balance. Many HELOC programs have an early termination fee. 

What are common financial advantages of HELOCs?

     ü      No Loan Fees

     ü      No Appraisal Fees

     ü      No Closing Costs

     ü      Draw Terms of 5 to 10 Years (the amount of time you can draw money out)

     ü      Pay Back Terms of 10 to 15 Years 

Home Equity Fixed Rate Loan

A Home Equity Fixed Rate Loan is quite similar to a Home Equity Line of Credit (HELOC), but offers more choices for people with less-than-perfect credit. Michael Ryan & Associates can help determine whether a HELOC or Fixed-Rate Loan is the key to your perfect mortgage.  

What are the primary advantages of Home Equity Fixed Rate Loans:

     ü      Fixed Rates (your interest rate can never go up)

     ü      You Choose Exactly How Funds are Spent (see common uses of a HELOC)

     ü      Interest May be Tax-Deductible (check with your tax advisor)

     ü      A Wide Variety of Amortization Periods (the length of time you have to pay the loan back) 

MORTGAGE Refinancing

Refinancing may be the key to your mortgage solution. Establishing a clear picture of your financial needs, goals and objectives is the first part of the process. Michael Ryan & Associates can assess your current loan situation and help determine if refinancing is the best option for you.  

What are the primary advantages of Refinancing?

     ü      Lower Monthly Loan Payments

     ü      Securing a Fixed-Rate Mortgage (if yours is currently adjustable)  

     ü      Consolidation of Expenses

     ü      Lower Monthly Expenses (combine first and second mortgages, home equity loans, credit cards etc.)

     ü      Easy Access to Cash (see common uses listed under HELOC loans) 

Reverse Mortgages 

What is a Reverse Mortgage?

A Reverse Mortgage is for Seniors (aged 62+), and is designed to help them access the equity (cash) already built up in their homes. It is called a ‘reverse’ mortgage because you borrow money from a lender, but the lender makes monthly payments to you, rather than you making monthly payments to the lender. As the homeowner receives monthly cash income, the loan balance increases. All interest is paid at the end of the loan, rather than in the beginning.  

Are there different Reverse Mortgage programs?

Yes. Michael Ryan & Associates offers nearly 30 different reverse mortgage solutions through 9 different organizations. Fannie Mae Home Keeper^®, Jumbo Cash-Out loan and the HUD-insured Home Equity Conversion Mortgage (HECM) are just three of the many programs. 

What are the primary advantages of Reverse Mortgages?

     ü      Access Equity Already Built in the Home

     ü      Financial Independence for Seniors

      ü      You Choose Exactly How Funds are Spent (including paying for medical, health care or other health-related needs. See common uses of a HELOC)

     ü      Flexibility to Withdrawal Cash as Needed (use the balance as a credit line)

     ü      No Income or Credit Requirements (the homeowner does not need to be working).

     ü      Seniors Never Risk Foreclosure (as long as property tax and insurance payments are maintained)

     ü      Loan is Paid Off When House is Sold (by the homeowner or heirs) or All Borrowers Move Out

     ü      Seniors Keep Medicare and Social Security Benefits