Mortgage FAQ

What are the advantages of purchasing a home?
Buying a home gives you personal benefits such as a sense of buying a stake in your community, and pride for achieving the American dream of home ownership. However, there are some strong financial benefits as well.

One of the largest benefits of homeownership is the tax savings you receive. Interest payments on a home mortgage are 100% tax deductible (consult your tax advisor to learn more). And as you continue to pay your mortgage payment, you are building equity in your home, as opposed to a rent payment that goes into somebody else's pocket. You build equity faster as the value of your home increases, and you can borrow against that equity to pay off debts, send your child to college, make home improvements, or take a much needed vacation. With today's low or no down payment options, affording a home is a lot easier than you may think.

How much do I need for a down payment on a home?
We offer a variety of different loan programs including first-time home buyer programs, and low or no down payment options. Imagine getting into your very own home with little or no money down!

Each loan program we offer has different rules about the down payment amount required. Down payments can also vary by the amount you want to borrow, as well as factors like credit history. To find out what options we have for you, contact one of our experienced loan specialists for a no-obligation quote, or click "Apply Now" on the top left of your screen to begin your application.

Should I get pre-qualified before looking for a property?
You don't have to apply for a loan before looking for a property, but it's a good idea to get pre-qualified or pre-approved for a home loan before you find a home to purchase. When you get pre-approved, you know ahead of time how much house you can afford, what you can expect your monthly payment to be, and how much money you will need for the down payment and settlement costs at closing. Also, many realtors will take your offer more seriously if you have been pre-approved.

Sterling Mortgage Resources offers a FREE, no obligation home mortgage pre-approvals.

Will I have to pay PMI?
Private mortgage insurance (PMI) is required for all loans that exceed 80% loan-to-value (LTV). If you put less than a 20% down payment on your purchase loan, you will likely be required to pay mortgage insurance until your LTV reaches 80% or below. Once you dip below 80% loan-to-value, you can refinance your home loan to eliminate the insurance. We may be able to help you avoid the expensive costs of PMI with one of our home mortgage programs.

Is it a good idea to refinance my home?
You may be tired of making one mortgage payment for your first mortgage, and another payment for your second mortgage. Perhaps it's time to reduce your current interest rate to a lower fixed or adjustable rate, or maybe you have an adjustable rate that you want to convert into a fixed rate mortgage. You may want to cash out some of your equity, or lower your overall mortgage payment. Refinancing may also allow you to get rid of private mortgage insurance (PMI) if you now have 20% equity in your home. To talk about the possibilities, call one of our loan specialists or apply online for a no-cost, no-obligation quote.

Can I refinance for no cost or low cost?
Absolutely. With the wide variety of loan programs available, you may very well be able to refinance your existing loan at no cost or minimal cost to you. You may see immediate savings, and you won't have to sacrifice your bank account or equity to get a great rate. Many people have taken advantage of our no cost refinance programs. Why shouldn't you be one of them? Ask one of our experienced loan consultants about our flexible financing options, or apply online to get matched with a loan program that fits your goals.

Is it worth refinancing if I only see a small change in my current rate?
A lower interest rate will save you money if you plan to stay in your home for more than a few years. You can use our mortgage calculators to see how much you will save by refinancing. However, even if you don't pick a lower interest rate, refinancing can still save you money by allowing you to roll in higher interest debt, or giving you the flexibility of an interest-only option.

Can I obtain a cash-out refinance loan for more than my home is worth?
We do not currently provide any loan programs at this time that allow you to refinance your home for more than it is worth.

Can I eliminate PMI by refinancing?
If you meet two specific conditions, you may be able to remove mortgage insurance by refinancing your new home. You can qualify if you have made your mortgage payments on time every month for a specific time (usually a year), and you have reached a point of having 20% equity in your home, either through appreciation or paying down your mortgage.