How do I know how much house I can afford?

Generally speaking, you can purchase a home with a value of two or three times your gross annual household income. However, the amount which you can borrow will also depend upon other factors such as:

  • Employment History
  • Credit history
  • Current Assets
  • Current Debts
  • Amount of down payment

You may also be able to take advantage of special loan programs such as first time home buyers to purchase a home with a higher value.

Give us a call, and let our professional mortgage brokers help you determine exactly how much you can afford.

How much cash will I need to purchase a home?

The amount of cash that is necessary depends on many factors, but generally speaking, you will need to supply the following:

  • Earnest Money/Cash Deposit: The deposit supplied when you make an offer on the house as a sign of good faith on your purchase offer.
  • Down Payment: A percentage of the cost of the home which is due at settlement.
  • Total Settlement Costs: The total of your closing costs and prepaid costs.
What are the advantages of purchasing a home?

Unlike renting, buying a home offers you pride of ownership and fulfillment of the American dream of owning a home.

In addition, one of the largest benefits of homeownership is the tax savings you'll receive your taxes and the interest from your mortgage payments, both which are 100% tax deductible (talk to your tax advisor for specific details).

As you continue to pay your mortgage payment, you will also be contributing towards building equity in your home, compared to your rent payments which go directl into somebody else's pocket. You will also build equity faster if the value of your home increases.

Once you build enough equity, you will then have the option to borrow against the equity to pay off debts, send your child to college, renovate your home, or take a much-needed vacation.

With today's low or no down payment options, affording a home is easier than you may think, let the progessional mortgage consultants at HB&O Funding Company show you how.

How much do I need for a down payment on a home?

HB&O Funding Company offers 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!

The down payment amount required does vary by loan type, purchase price and various other factors such as credit. To find out what options we have for you, please contact one of our professional mortgage consultants.


What are the advantages of refinancing my home?

Whether it is for your individual situation or you are trying to achieve a financial objective. With today's low cost refinance options, now even a small reduction in your interest rate can still make sense.

Some good reasons to refinance are as follows:

  • Consolidate Your Debts
  • Lower your Monthly Payments
  • Cash out
  • Shorten your Term
  • Lock in your payments
  • Home improvement
  • No More PMI
  • Bankruptcy
Is it worth refinancing if I only see a 1/4% (.250) reduction in interest rate?

Generally speaking, a lower interest rate will save you money over full term of your mortgage. The goal will be to remain in your home long enough to enjoy the overall monthly savings. This point we refer to as the break even point - This point marks the time when your number of payments you need to make at the lower interest rate make up for any closing costs fees you paid to refinance into that lower rate.

The calculation is simple:

"Total cost of Closing Costs" divided by "Monthly Savings Amount" = the number of months it will take to "break even" on your refinance.

Can I obtain a cash out amount more than my home is worth?

No. The maximum loan amount you can Cash-out up to 85% of the current value of your home.

Can I eliminate PMI by refinancing?

As long as you meet the requirements, you may be able to remove mortgage insurance by refinancing your new home. The main factor is that you have made your mortgage payments on time over a specific time period (usually a year) and that your home has appreciated enough to reach the 20% equity mark.


When I apply for a loan, what happens next?

After your information has been received a mortgage consultant will personally follow up with you and confirm the information on your application. He or she will then customize a solution which best fits your short ant long term needs. Once your dicision has been confimred, your application wil be turned over to a loan processor, who will facilitate the progress of your application until closing or will notify you in writing that your loan has been declined.

What kind of information do I need to provide to start the loan process?

In General you will need to provide income, asset, and liability information, residence, and personal identification. For specific materials, please reference our Materials Needed section and choose the list which directly matches your loan goals.

In General:

How do I get started?

It's simple! Contact us by any of the methods listed below and our professional mortgage consultants will provide you a free consultation and advise you on what option will best suit your specific scenario.

What information do you collect?

Our goal is to collect the least amount of materials as possible. We only collect the information and materials which is required to get you approved and then clear of any conditions our lenders may request.

For an initial list of the materials which we will need to process your loan application, please click on the following link: Checklists

If you cannot access any one of those items, please contact your mortgage consultant for assistance or for alternatives.

How secure is my information?

HB&O Funding Company utilizes the most secure technology available on the Internet.

Please click on the following link to review our privacy policy and understand how seriously we take your confidentiality: Privacy policy.

If you are still a skeptic, please feel free to contact us directly and one of our mortgage professional will be more than happy to review these points with you and/or gather any information you may want to deliver in person.

What are your rates?

We receive this question all the time! Like our customers, none of our programs are the same. Our goal is to match you with the program that best fits your unique needs.