Author: Altitude Home Loans

Understanding the Different Types of Reverse Mortgages

Written by Altitude Home Loans on October 30, 2024. Posted in General.

You may wonder where to acquire an extra income source to supplement your savings as you approach retirement age. Could the perfect solution be a reverse mortgage?

Read on as Altitude Home Loans’ mortgage lenders in Tucson, AZ, outline the primary types of reverse mortgages you could add to your portfolio.

How a Reverse Mortgage Differs From a Typical One

You take out a regular mortgage when you first purchase your home. If so, the lender immediately pays for the bulk of the property price after you’ve made the required down payment.

When you take out a reverse mortgage, you receive a loan in exchange for home equity. Most people qualify for a reverse mortgage after they turn 62 and don’t have to pay it back until they move out of the property or pass away. Still, there are a few caveats, like owing the lump sum plus interest because you don’t pay the loan back in installments.

What Types of Reverse Mortgages Should You Research?

Are one of these reverse mortgage types a sufficient solution to pad your income? Learn more about the different types of reverse mortgages detailed below.

Home Equity Conversion

You might qualify for a home equity conversion mortgage if you have quite a limited income. You can use that money for anything, from paying off vehicles to medical bills. The main downside is that HECMs have steep upfront costs, so you’ll need hefty funding options.

Single-Purpose Reverse

Why not apply for a single-purpose reverse mortgage through local or state government programs or nonprofit organizations? This mortgage type protects the lender’s interests via lower interest rates for the borrower. You can also only use the loan for a specific, agreed-upon purpose.

Proprietary Reverse

Only a private lender will supply a proprietary reverse mortgage. You might prefer this loan if you own a high-value property backed by a professional appraiser or if you don’t qualify for an HCEM. Some lenders refer to this particular reverse mortgage as a jumbo reverse mortgage since it is a high-end deal.

Fixed Versus Adjustable Rates for Reverse Mortgages

If you take out any type of reverse mortgage, you’ll find it falls under one of these two categories:

Adjustable Rate

An adjustable-rate reverse mortgage has shifting interest rates. You might incur a low rate one month but then notice an increase the next. The upside is flexibility, particularly with how you draw from and use this loan.

It’s a fantastic option for long-term retirement planning.

Fixed Rate

A fixed-rate reverse mortgage is the opposite – its monthly repayment rate doesn’t change. The interest rates you’ll pay are the same over the entire loan period.

You might prefer this with a steady, predictable budget or payment plan.

Purchasing a Home in Tucson, Arizona? Contact Altitude Home Loans

The final question is, “Which types of reverse mortgages will work best for your current financial situation?” Altitude Home Loans can help you find out and answer questions, like what happens after skipping a mortgage payment.

If you’re on the hunt for your dream home in Tucson, Arizona, get in touch with our competent loan officers at 520-500-1010!

When Should You Refinance Your House Mortgage?

Written by Altitude Home Loans on September 30, 2024. Posted in General.

Is the time ripe to refinance a house mortgage? It could become your ticket to financial ease!

As the go-to mortgage lenders in Tucson, AZ, we at Altitude Home Loans know a thing or two about the subject. Keep reading as we dive into the nitty-gritty details.

Do It for the Right Reasons

Too many people reassess their mortgages without fully understanding their goals. Some of the best motivations to take the plunge include the following.

Lowering Interest Rates

Does the current market favor borrowers? If you locked in a mortgage at a higher interest rate several years ago, you might want to consider a rate-and-term refinance. You should ideally obtain a rate at least one-half of a percentage point lower than your existing plan.

Check your credit score and report before applying! You’re in a good spot when both have improved since your last mortgage. The best refinance rates go to people with the 740 score and above club.

Removing Private Mortgage Insurance (PMI)

PMI is extra insurance when your down payment dips under 20%. It protects lenders, not you, and adds to your monthly bill.

Refinance your house mortgage to eliminate this costly extra with enough home equity. The savings will roll back into your pocket instead of the lender’s.

Financing Big Purchases

Do you need to cover upcoming expenses? We’re talking about wiping out those credit card bills or avoiding student loans’ hefty interest!

Conduct a cash-out refinance and liquidate your home’s equity. People also use the funds to purchase property or renovate their homes.

Changing the Loan Structure or Term

You might want to speed up your mortgage payoff. Shortening a loan term can save you loads on interest over time. You can also switch from an adjustable rate to a fixed rate for more predictability in your budget.

Both strategies bring peace of mind and financial stability. Talk to your lender, assess the current rates, and see which option best fits your goals.

Know When To Reconsider This Route

Should you refinance? It’s not always the best move for everyone. You generally want to avoid:

Discretionary purchases: Some fall into the trap of risking their home to finance luxury items like high-end vacations, extravagant cars, or other non-essential expenses.
Changing loans halfway through the term: You probably won’t save on refinancing when you’re too far along in your mortgage. It means reaching a point where the bulk of the payment goes to the principal balance rather than interest.
Selling too soon: If you need to put your property on the market in the next few months, you probably won’t have enough time to recover the refinancing costs.

Is Refinancing Worth It?

Take the time to analyze the situation by calculating the potential return, as well as accounting for closing costs and loan-to-value ratio. Altitude Home Loans always has you covered if you need assistance.

Dial 520-500-1010 to refinance your house mortgage — just have the required documents and we handle the rest! Give us a call today.

What Happens If My Mortgage Pre-Approval Expires?

Written by Altitude Home Loans on July 30, 2024. Posted in General.

Any homebuyer will benefit from a mortgage pre-approval, a document stating the loan amount you can be approved for. These documents make you look reliable to sellers, but you have a due date to work with. You may wonder, “What happens if my mortgage pre-approval expires?”

Altitude Home Loans is here to explain this process. Get in touch with us today if you need experienced mortgage lenders in Tuscon, AZ, to help you navigate the overwhelming mortgage process.

What Is a Mortgage Pre-Approval?

Take advantage of a mortgage pre-approval to expedite the homeownership process, especially since the mortgage industry plays a crucial role in most home purchases. The pre-approval document states the loan amount a bank or other financial institution has approved you for.

When you put in an offer on a house, you’ll be more likely to be considered than a homebuyer who hasn’t sought pre-approval, since you have proof you can afford the offer you’re requesting.

When Will My Pre-Approval Expire?

The validity period will be different for everyone, but you typically have up to 90 days to purchase a home before your pre-approval expires. Your document will state the expiration date, but you can always ask your loan officer if you can’t find it or need clarification.

What Happens If Your Mortgage Pre-Approval Expires

Life is never as organized as you’d like it to be, so while you may intend to use your pre-approval while it’s valid, that might not happen. But what happens if your mortgage pre-approval expires? You won’t have any penalties for letting your pre-approval expire — but there are some inconveniences.

It May Take Longer To Find a House

The unpleasant answer to “What happens if my mortgage pre-approval expires?” is that you’ll have reduced chances of buying your dream home until you have it back in place. Those with pre-approvals are typically favored over those without.

You’ll need to contact your loan officer to start the process over again. Depending on your situation, you may only need to resubmit a few documents rather than do it all over again.

Your Next Pre-Approval Rate May Change

Your new rate might change if your credit score or financial situation differs from when you last sought pre-approval for a mortgage. You may have a better or worse pre-approval based on these changes.

What To Do Next

“What happens if my mortgage pre-approval expires?” is often followed by, “Now what?” If your pre-approval expires, you need to:

Contact Your Lender: Do this sooner than later. Let them know you ran out of time and need a new pre-approval.
Submit Necessary Paperwork: Your loan officer will tell you what papers you need. You might need to submit some or all of your previous documentation along with new documents.

Call Altitude Home Loans Today

You don’t have to ask, “What happens if my mortgage pre-approval expires?” Call Altitude Home Loans in Tuscon, AZ, at (520) 500-1010 to start working with a local mortgage lender.

What Is a Conforming Loan and How Does It Work?

Written by Altitude Home Loans on June 30, 2024. Posted in General.

When you’re in the market to buy a home, you’ll typically come across various types of mortgages, including FHA, USDA, VA, and conventional/conforming loans. Among these, conforming loans are the most common, and for good reason. But what is a conforming loan?

Altitude Home Loans, one of the top-rated mortgage lenders in Tucson, AZ, delves deeper into conforming loans and how they work. Call (520) 500-1010 for more insights into Arizona mortgage laws and regulations.

Understanding Conforming Loans

A conforming loan is a type of conventional loan or mortgage that meets Freddie Mac or Fannie Mae guidelines. Conforming lenders underwrite and fund the loans and then sell them to investors like Freddie Mac and Fannie Mae.

Once Freddie Mac and Fannie Mae scrutinize the loans, they sell them to investors on the open markets. Because of their liquidity and government regulations, conforming loans typically feature lower interest rates than non-conforming loans.

Conforming loans have set limits and guidelines for mortgage qualification criteria, loan amounts, borrower credit profiles, down payments, and types of property. The Federal Housing Finance Agency reviews conforming loan limits every year to reflect housing market changes.

With conforming loans, you have the option of a fixed or adjustable rate. Terms lengths also vary, with 15- and 30-year terms being the most popular.

How Do Conforming Loans Work?

When trying to answer, “What is a conforming loan?” you may wonder what role Freddie Mac and Fannie Mae play in all this.

Both entities have similar guidelines and missions—to provide long-term stability and liquidity to the U.S. mortgage and housing markets. While Freddie Mac buys mortgages from small (private) banks and credit unions, Fannie Mae works with commercial (large banks).

You typically won’t have contact with either of them as they work behind the scenes.

After closing on your mortgage, the title company overnights the documents to the lender’s post-closing department. The experts there verify that you’ve signed all documents correctly and provided any requested information.

Should they find any issues, the lender will contact you to fix the errors. Once ready the lender will send the loan to Fannie Mae or Freddie Mac to purchase. The investor then checks on your loan documents and asks for any clarification they need before uploading the loan into the system and paying the lender.

This process plays a crucial role in providing lenders with more liquidity to keep writing more loans. Fannie Mae or Freddie Mac then bundles loans like yours and sells them to investors as securities.

Trust Altitude Home Loans for Your Mortgage Needs

Now that you can answer the question, “What is a conforming loan?” let our Trust Altitude Home Loans experts help you find the best mortgage options for your new home.

Whether you need to finance your new home using a Freddie Mac loan or learn more about loan-to-value ratio, trust us, your local mortgage lender, to guide you.

We have a talented team of experienced professionals committed to providing you and your family with the ultimate mortgage experience. Call Altitude Home Loans today at (520) 500-1010 to start your journey toward homeownership.

Can You Skip a Mortgage Payment?

Written by Altitude Home Loans on May 30, 2024. Posted in Mortgage.

When struggling to pay your bills and make ends meet, finding ways to cut expenses may require sacrifice and creativity. In dire circumstances, you might wonder, “Can you skip a mortgage payment?”

While it’s certainly possible to miss a mortgage payment and keep your home, not making the monthly payment can have significant consequences for your financial future. Here, the experts at Altitude Home Loans, the top mortgage lenders in Tucson, AZ, explain what can happen. You can get more insights by calling 520-500-1010.

What Happens When You Don’t Make a Mortgage Payment

First things first: Missing a single mortgage payment will not trigger foreclosure proceedings. Most lenders will not even consider foreclosure until borrowers miss two payments or are 90 days or more in arrears.

However, that doesn’t mean you can decide not to pay your home loan and expect everything to be fine. Missing just one payment can:

Affect your credit score. Most lenders report payments more than 30 days late, causing a drop in your score of up to 100 points or more.
Trigger late fees. Most lenders will charge a late fee for any payment received past the due date.
Make next month more expensive. Even when you don’t pay on time, you still have an obligation to make the payment. The mortgage company will expect you to pay the past due amount and your current payment the following month.

I Can’t Make My Payment This Month — Now What?

As soon as you realize you cannot make your monthly mortgage payment, get in touch with the lender to discuss the situation. You may be able to work out a payment agreement or other solution to prevent excess fees, damage to your credit, or foreclosure. If the issue is temporary and due to something like an emergency that drained your available funds, and you have a good track record of making payments, you should be able to arrange a workable solution.

If you find yourself asking, “Can you skip a mortgage payment?” more frequently and struggle to pay every month, you may need a more permanent solution.

Mortgage relief options to consider include the following:

Mortgage modification, which changes the loan terms to extend the life of the loan, switch from an adjustable to a fixed rate, or lower the interest rate.
Mortgage refinancing, in which you get a new mortgage at a lower interest rate to pay off the existing loan, reducing your mortgage payments every month.
Forbearance, which allows qualified buyers to reduce or suspend their payments temporarily.

If none of these options work, and your financial situation doesn’t allow you to make payments comfortably, it may be best to sell your home and find something more affordable.

Get Help From Altitude Home Loans

Choosing a local mortgage lender like Altitude Home Loans in Tucson, AZ, means you have someone close to home you can talk to when you’re having trouble with your mortgage. If you need to know “Can you skip a mortgage payment?” or are having trouble paying your loan, call 520-500-1010 for help.

How Many People Can Be On a Mortgage?

Written by Altitude Home Loans on April 30, 2024. Posted in Mortgage.

There are plenty of reasons a pair may want to co-own a property’s mortgage, whether they’re partners or just roommates. They may even want several people to take responsibility for the home’s mortgage repayments, but what are the rules about how many people can be a mortgage at once?

For the curious and those wanting to share the mortgage burden with those who share their home, here’s more from Altitude Home Loans, top-notch mortgage lenders in Tucson, AZ.

How Many People Can Be on a Home Loan Together?

There is no inherent mortgage applicant limit, but lenders’ mortgage applicant eligibility requirements will often complicate matters. If you and three of your friends would like to buy a house together, no mortgage co-applicant capacity rule can stop you. The real question is whether each of you has the credit history and financial means for the process to go through.

The approval process, especially for multiple people, comes with its own hurdles. While there’s no legal limit to your mortgage applicant count, more than four borrowers on a mortgage loan is rare. Conventional loans are less stringent about putting four maximum borrowers on mortgage loans, but for a higher mortgage co-signer allowance, you’ll likely need to manually underwrite the mortgage yourself.

So, if you’re wondering how many people can be on a mortgage, you have your official answer—as many as you want. The primary benefit of multiple names on a mortgage is the cost-sharing, which gives each title deed holder more financial flexibility. Still, the challenges of a four-way co-ownership can be fearsome, so seek expert mortgage advice beforehand.

What’s The Difference Between a Co-Borrower and a Co-signer?

The difference between a co-borrower and a co-signer on a mortgage comes down to ownership. While both parties will have a responsibility toward making the mortgage payments, only a co-borrower owns the property. A co-signer isn’t on the deed, and while this doesn’t make much of a difference in what these participants do each month, it makes a tremendous difference to other things like tax and credit.

Both co-borrowers and co-signers will pay on the mortgage. There’s also the same evaluation process for these parties, alongside the same financial responsibilities. If either a co-borrower or a co-signer falls behind on the mortgage repayments, the consequences will be the same from a legal perspective.

Work With Altitude Home Loans For Your Home Buying

If you’re considering a loan, why not consider working with a local mortgage lender that you can trust? Altitude Home Loans is an expert source of information and assistance for your home purchasing, home refinancing, and loan affairs. Whether this is your first time buying a property or you’re trying to refinance one, our exemplary services can help.

How many people can be on a mortgage in your state? For these answers and much more, reach out to the industry professionals at Altitude Home Loans. Find out more about your potential future home loan options when you call 520-500-1010!

Can You Roll Closing Costs Into Mortgage?

Written by Altitude Home Loans on March 30, 2024. Posted in Mortgage.

When you save money to buy a home, that cash must cover more than the down payment. You also need to plan for the closing costs of the loan, which include the fees and expenses of issuing the loan. In most cases, these costs equal 2% to 5% of the loan amount, which has many homebuyers wondering, “Can you roll closing costs into mortgages?”

You can include these fees in your mortgage, but there are some caveats to consider before doing so. The homebuying experts of Tucson’s mortgage brokers at Altitude Home Loans can help you make the best decision for your budget. Call us at (520) 500-1010 to discuss your situation and find the best solution for your budget and financial goals.

What Does It Mean to Include Closing Costs in a Mortgage?

Closing costs can include a long list of charges, including:

Loan application costs
Loan origination fees
Underwriting and credit report fee
Title fees, including search and insurance
Home appraisal and inspection fees
Real estate agent commissions
Attorney fees
Prepaid mortgage interest
Home and mortgage insurance
Prepaid property taxes
HOA fees

Typically, the home buyer pays these costs at the loan closing.

When you see the final tally of all the charges, you might wonder, can you roll closing costs into mortgage loans to avoid paying closing costs upfront and draining your bank account? It is possible, depending on the type of loan. The lender will cover these costs for you in exchange for a larger principal amount or a higher interest rate.

Lenders can only include some closing costs in your mortgage loan. Typically, you cannot add the costs of homeowner’s insurance, prepaid taxes, or HOA fees to your mortgage.

Pros and Cons of Including Closing Costs in Your Mortgage

Rolling closing costs into a mortgage can help you keep more cash. However, doing this increases monthly mortgage payments and how much you’ll pay over the life of the loan since you pay interest on the entire amount. Ultimately, paying closing costs upfront costs thousands less than including them in the home loan.

Borrowing more money also increases the loan-to-value ratio, the amount you owe vs. the value of the property, reducing equity. You’ll have to pay for private mortgage insurance longer and have less leverage to take out a home equity loan or line of credit.

How to Reduce Closing Costs

Instead of rolling the closing costs into the loan, you can reduce them with a few proven strategies, including:

Negotiating with the seller to cover the costs
Shopping around for the best prices on services like inspections and title searches
Taking out a no-closing-costs loan

You will likely have to pay some closing costs, but the final bill will be lower.

Let Altitude Home Loans Help You Purchase Your Dream Home

Taking out a mortgage to buy a home can be complex, but Altitude Home Loans is here to help. Our experienced brokers can guide you through the mortgage process steps and answer questions like “Can you roll closing costs into mortgages?” Call (520) 500-1010 to learn more and start your mortgage application.

Benefits of Working with a Local Mortgage Lender

Written by Altitude Home Loans on February 29, 2024. Posted in Mortgage.

Buying a home means making several decisions — and not just about finding the perfect property. Choosing the right people to guide you along the path to homeownership also matters, as they’ll ensure you get the best information, service, and insights.

Your home buying team includes your mortgage lender, and you need one who wants to be your partner, not just a banker. Although national mortgage companies might seem appealing, they can’t offer the service and experience of a local mortgage lender. Here, the team at Altitude Home Loans, the best mortgage lenders in Tucson, Arizona, explains why a local company is your best choice.

Once you review this information, if you still have questions or want to start a home loan application, give us a call at (520) 500-1010.

Why You Should Choose a Local Mortgage Lender

There are many practical advantages to seeking a home loan from a lender in your community. Here are some of the most important.

Personalized Service

When you choose a local mortgage lender, you’re more than an account number. You’ll enjoy face-to-face communication with an expert who’s on your side and ready to walk you through the complexities of taking out a mortgage. Instead of dealing with service lines or customer service representatives who can’t take the time to get to know you and work with you to find solutions, you get a community-focused partner committed to reducing the stress and anxiety of the process.

Impeccable Reputation

Working with a local mortgage lender can make you a more competitive buyer in multiple-offer scenarios. Some realtors and sellers won’t work with buyers who use huge national companies due to previous bad experiences. When a buyer has pre-approval from a trusted community source, they have more confidence that the transaction will go smoothly.

Local companies also recognize that their reputation matters and go the extra mile to ensure exceptional service. They know that customers will recommend their services to others, so they take care to nurture strong relationships that turn into referrals and repeat business. This means you can expect quick response times, fewer closing delays, and a smooth and streamlined experience from start to finish.

Local Knowledge

Working with a neighborhood broker means tapping into their breadth of local market knowledge and neighborhood expertise. This insight can mean access to products and solutions better tailored to your needs. Local companies also have established relationships with realtors and other professionals like appraisers, inspectors, and title companies, which can get you into your new home faster and with more confidence.

Discover the Advantages of Working with a Local Lender When You Call Altitude Home Loans

If you’re shopping for a home in the Tucson, Arizona, area, or you have questions to ask a mortgage lender, get in touch with Altitude Home Loans at (520) 500-1010. Our team of knowledgeable local mortgage lenders is happy to help you navigate the home buying process and find the best solutions for your needs and financial situation.

What Is an Origination Fee on a Mortgage?

Written by Altitude Home Loans on January 30, 2024. Posted in Mortgage.

One of the first things you’ll learn when buying a home is that the mortgage application process comes with several different steps and, unfortunately, fees. One of these is the origination fee.

As the best mortgage lenders in Tucson, Arizona, Altitude Home Loans knows that homebuyers tend to have a lot of questions about the mortgage application process. Here, we’ll answer, “What is an origination fee on a mortgage?”

Mortgage Origination Costs Defined

The origination fee helps cover different overhead costs that the lender has to pay when processing your loan. These can include payment for underwriters, appraisals, bankers, and more. By charging the origination fee, the mortgage company can earn more profit, generating enough money to provide mortgages to other homebuyers.

While an origination fee is common, not all mortgage lenders charge it. If you don’t see origination fees on your mortgage application, it’s likely because your loan has a higher interest rate.

Mortgage Origination Fee Explanation: How Does It Work?

What is an origination fee on a mortgage, and how does it work?

Unless you plan on paying with cash, you’ll likely need to apply for a mortgage when purchasing a new home. Like other types of loans, mortgages require you to pay additional fees during the application process, including the origination fee.

Understanding mortgage loan origination fees starts with knowing how much they cost. Typically, a mortgage lender will charge between 0.5% and 1% of the total cost of your loan. For example, if your mortgage is $300,000 and your origination fee is 1%, you’ll pay $3,000 for the fee.

A Breakdown of Origination Fees in Mortgages and Other Closing Costs

You will typically pay the origination fee with your other closing costs. Like the origination fee, the other closing costs are fees that help pay for the application process. Your lender determines the amount of these fees.

Although each lender will have a different fee structure, the following are the most common types of closing costs.

Application Fee

Separate from the origination fee, the application fee is a deposit that you get back when you close on your house. However, you may not get this money back if you don’t close, depending on the lender.

Credit Check Fee

This fee is typically only $30 and covers the cost of the lender checking your credit score for the application process.

Escrow Fee

During the application and underwriting process, your money goes into an escrow account to protect your funds from unauthorized access. The fees help cover the costs of holding this account.

Get Help Decoding Mortgage Origination Fees With Altitude Home Loans

While applying for a mortgage includes several different steps, understanding what fees you’re responsible for paying and why they’re necessary can help you budget and enjoy a smoother process.

What is an origination fee on a mortgage? To learn more about the importance of mortgage origination charges or the truth about mortgage loans, call Altitude Home Loans at (520) 500-1010. Get more information today.

What Is a Mortgage Credit Certificate?

Written by Altitude Home Loans on December 30, 2023. Posted in Mortgage.

Buying a home is an investment. The initial down payment plus closing costs often present substantial challenges for first-time homebuyers.

As a result, several programs exist to enhance homeownership prospects for Americans, especially those in the low- to moderate-income bracket.

One such program, the mortgage credit certificate, lowers the barrier to entry for those planning to purchase a home for the first time. But what is a mortgage credit certificate? As the best mortgage lender in Tucson, Arizona, Altitude Home Loans explains what you need to know about MCCs if you’re ready to buy a home.

Mortgage Credit Certificate Described

Mortgage credit certificates are certificates that mortgage lenders issue to qualifying first-time homebuyers. An MCC allows you to offset a percentage of your mortgage interest via a tax credit. To qualify for the MCC program, you must have a low to moderate income.

An MCC may also help you qualify for a higher mortgage loan by increasing the monthly income that you can list on your application. You can use the credit to assist you in making monthly payments as long as the home remains your primary residence.

An MCC is not a loan but rather a federal tax credit. Participating lenders provide information to their clients about the tax credit and apply to the State Housing Finance Agency for the certificate on their behalf.

How MCCs Work

What is a mortgage credit certificate? Unlike tax deductions, MCCs provide a dollar-for-dollar tax credit to qualifying recipients to increase their ability to afford housing payments.

Sometimes, an MCC may help a borrower who might not otherwise qualify for a loan by reducing their net monthly mortgage payment. Qualifying home buyers who receive MCCs can then take a nonrefundable federal tax credit equal to a percentage of their annual mortgage interest.

You may opt to take the tax credit when filing your tax returns or amend your W-4 withholding form to reduce the amount of federal income tax withheld from your paychecks.

Tax credit percentages vary between states but typically range from about 10% to 50% of the total mortgage interest (up to a maximum of $2,000 for each MCC recipient). You may also deduct the remaining interest obligation as a standard home mortgage interest deduction.

Benefits of MCCs

Mortgage credit certificates offer advantages like:

MCCs increase a borrower’s payment affordability.
MCCs help lenders reach and qualify more borrowers with low-to-moderate incomes.
Borrowers can couple MCCs with most first mortgage loans

Potential Challenges of MCCs

Mortgage credit certificates come with some potential downsides for borrowers:

The application, benefits, and limitations of MCCs can be difficult to understand.
Borrowers may be subject to recapture tax.
State MCC programs depend on the availability of funds allocated to mortgage credit certificates.

Learn About the Mortgage Application Process With Altitude Home Loans

A tax or mortgage expert can ensure you properly take advantage of the MCC program and maximize your tax deductibility.

Call our Altitude Home Loans home-buying experts at (520) 500-1010 to learn the truth about mortgage loans or for answers to questions like, “What is a mortgage credit certificate?”