Why top real estate producers rely on Keith Brown

"Keith Brown is the Fairfax mortgage lender I've counted on for years. His pre-approvals stick, he uses local appraisers, and his loans close on time." Learn more »

Why homebuyers trust Keith Brown

"Keith Brown got us a great rate on the right type of loan. When there was an underwriting issue, he solved it so we closed on time with no surprises." Learn more »

Call Keith at 703-449-6821 or GET STARTED TODAY!

NMLS ID#195682

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Which type of home loan or refinance is right for you?

How much mortgage can you afford? Are you eligible for a VA or FHA loan? What type of conventional mortgage programs might answer your needs? Are 5-7 year ARMs worth considering? What is a jumbo mortgage and what rate differences apply? How can I reduce or work around expensive Mortgage Insurance with a downpayment of less than 20%.

To find the right answers, Keith Brown looks at your credit, income, debt and how long you plan on being in your home.  He can then draw on the direct-lending resources of Intercoastal Mortgage to secure you the best rates and terms. You end up with a mortgage that’s the best fit for your budget and your plans for the future.

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Combination Loans:

Combination loans involve the use of a 1st and 2nd trust to purchase or refinance a home.

Pros:

-On down payments of less than 20%, a Combination Loan can help you avoid mortgage insurance. Normally this would be accomplished by taking a first trust at an 80% Loan-To-Value (LTV) and taking out a 2nd trust for the remaining amount. A minimum down payment of 5% is required for most Combination Loans. This is commonly referrd to as an 80-15-5 loan. (80% first trust, 15% second trust and 5% down)

-On high loan amounts, a Combination Loan can help avoid having to do a Jumbo loan.  

Cons:

-Qualifiying for a 2nd trust is much stricter. Normally debt ratios are capped at 40% with minimum credit scores of 720 and strong Reserves required.

-2nd trust rates can be expensive. It is not unusual with 5-10% down to see a 2nd trust carry a rate of 2 to 3% above the 1st trust rate.

-Depending on the down payment amount and loan-to-values, there may be an add-on to the rate on the 1st trust due to the extra risk perceived in carrying a 2nd trust.  The result is that a 2nd trust loan carrying mortgage insurance (MI) could actually be a cheaper deal-especially if using a Single Premium or Lender Paid MI option. If placing less than 20% down, always compare MI options with Combination Loan options to make sure you are getting the best deal.


Second Trusts

A second trust is a loan that can be added to a first trust (the main mortgage) to avoid the need for mortgage insurance by making the total amount of the mortgages less than 80% of the home’s value.  Second trusts can also be created as separate loans used for a refinance, debt pay off, home improvement or any other financial need. Keith Brown can structure your second trust as a home equity loan for a fixed rate and term, or as a home equity line of credit with adjustable rates.