Redwood Meadows Residents
Can I roll my upfront lease payment into my mortgage?
Yes, maybe or no … it will all depend on your homes equity (equity = the difference between the current market value of your home and the amount you owe the lender who holds the mortgage) plus your personal qualification criteria.
Yes
✓ You qualify for a higher mortgage amount based on your verified income (via income tax returns, job letter/pay stubs),
✓ You have excellent credit,
✓ You are not carrying a large amount of debt,
✓ Your property is in good/great condition,
✓ Your current mortgage is for much less than 80% of your home’s current value,
If you meet this criteria … yes, you should qualify to include an upfront lease payment into your mortgage. This can be done by *refinancing your existing mortgage or potentially looking at a 2nd mortgage.
Maybe
✓ You are unsure if you qualify for a higher mortgage amount based on your verified income (via income tax returns, job letter/pay stubs),
✓ You are not sure of your credit standing, ✓ You are carrying some debt,
✓ You are unsure of your home’s current value,
✓ You estimate your current mortgage is for less than 80% of your home’s current value,
If you meet his criteria … you may qualify to include an upfront lease payment into your mortgage but you should reach out to a mortgage professional to review your personal circumstances. If you do qualify, this can be done by *refinancing your existing mortgage or potentially looking at a 2nd mortgage.
No
✓ You do not qualify for a higher mortgage amount based on your verified income (via income tax returns, job letter/pay stubs) due to a reduction in income or recent job loss,
✓ You do not have good credit,
✓ You are carrying a large amount of debt,
✓ Your property is in poor condition,
✓ Your current mortgage is for greater than 80% of your home’s current value,
If you meet any of this criteria … no, I am sorry but it is doubtful you will qualify to refinance your mortgage. I would suggest you speak with your everyday bank and ask about personal or unsecured borrowing options.
*Refinancing is the process that repays your existing mortgage and starts a brand new mortgage, usually for a higher loan amount and/or for a better interest rate. If a refinance is not an option (too high of a prepayment penalty from your existing mortgage for example) then we may consider a 2nd mortgage for the extra funds you need.
Submitted by Candace Perko
