Some Basic Tips for You Determine what you can afford Each buyer is unique - and we'll help you find out just what you can afford. Your income and your debts will typically play the biggest roles in determining your price range. It's simple to make an estimate, just run the numbers for yourself using our Affordability Calculator. Figure out your funding A range of mortgage options are available, and we'll help you determine which can work for you - some loans require little money down. You'll also need to consider closing costs and the escrow account for taxes and insurance. But don't get overwhelmed: it's a snap to figure out how much money you'll need using the Affordability Calculator. Less-than-perfect credit report? Don't worry, there are options that are ideal for those who have a few "dings" on their credit report. Work with your lender to develop an individual mortgage program based on your unique credit worthiness. Loan Programs Finding the best loan program for your needs depends on a number of factors, including: How long you'll stay in the home How much money you'll put down How you'll finance the closing costs For information on various types of loan programs available to the consumer, just visit Loan Programs Tax Benefits You may be able to deduct the interest you pay on the mortgage loan and some of the financing costs of the home, such as points. And your property taxes could be deductible. You should consult your tax advisor for more information. Buying a Second Home You'll need to identify sources for your down payment, since you're not selling your current house and using the proceeds, and you'll need to expect a larger monthly obligation for housing expenses. Work with your lender to create a customized loan program with the best combination of rate, points, and closing costs for your needs. New Home Appraisals Some situations may qualify for a more streamlined loan process. Your credit history will help determine if your loan application can be completed without an appraisal. Private Mortgage Insurance (PMI) Loan programs for down payments of 20% or less require you to purchase Private Mortgage Insurance (PMI). Selling Your Current Home You may qualify for a new loan without even selling your current home. It's simple to run the numbers for yourself on our Affordability Calculator. You may also want to discuss a bridge loan with your mortgage company. New Construction If you are working with a builder within a sub-division or development and just making carpeting, lighting and appliance selections for a brand-new home, you can probably obtain a standard mortgage loan. But if you're hiring contractors, electricians, plumbers, and painters, you probably need a construction loan, which provides funds to pay subcontractors as work progresses. For more information on construction loans, contact your real estate professional, your mortgage company, or visit our links section for a list of professionals in your area. When to Refinance Each homeowner is unique - and we'll help you determine if it's the right time for you to refinance. Effective refinancing typically means lowering your current mortgage loan rate by at least one percent. You might also want to consider changing the length of your loan or receiving cash from the equity in your house. It's simple to see what will work for you, just run the numbers for yourself using our Refinance Calculator. Benefits of Refinancing If you want to increase cash flow, refinancing to lower your monthly payment could help. To get a good idea of what your new monthly payment would be, use our Refinance Calculator. Refinancing could also allow you to shorten your loan term if you qualify. Using Home Equity Many people borrow against the equity in their homes and use the cash to make improvements. Up to 90 percent of the appraised value of your home can be used to make home improvements. The equity you can use is based on the value of the home and what you currently owe, subject to applicable state laws. You can still refinance if you don't have much equity -- up to 90 percent loan-to-value (LTV) if you want to refinance your house for a new rate and term. A reappraisal of your property may be required. Refinancing Costs You will have closing costs associated with refinancing your loan, including points and processing fees. You may have the option of rolling these costs into the loan amount to reduce your cash out of pocket. To evaluate your options, use our Refinance Calculator.