Finance/Business Letters To The Editor

Letter to the Editor – Jan 2021

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

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