OUR SERVICE

Your Pena Lending Group consultant will conduct a thorough initial consultation that goes far beyond your ordinary loan application experience. Our Residential Mortgage Planning service takes into consideration your current financial situation as well as your future goals, and tailor makes recommendations based on current and projected real estate and financial market conditions. Once a strategy is drawn (using a suite of proprietary tools), your specific loan scenario is run through automated loan search and underwriting tools to find the best execution. After the closing of your loan, we also offer free active monitoring of your entire mortgage portfolio for life to capitalize on changes in the market and ensure your mortgage strategy is optimized.

INFORMATION ON HOME EQUITY LINES OF CREDIT & FIXED RATE SECONDS

When you have equity in your home and wish to tap into some of that for whatever reason, a home equity line of credit or home equity loan may be an option for you. It allows you to get cash at closing to consolidate bills, pay off higher rate debt, buy investment property, or simply provide an emergency source of cash for later use. These loans usually have less closing costs involved than a traditional rate and term refinance, and many Home Equity Lines of Credit even have No Closing Costs available.

Let's compare a HELOC to a Home Equity Loan:

HELOC. Has usually a variable rate (monthly) tied to the Prime Rate, but nowadays some banks offer a fixed rate for 5-20 years to mitigate interest rate fluctuation risk. Heloc margins (the percent added to the Prime Rate to make the full rate you end up paying) are heavily dependent on the CLTV (combined loan-to-value) and credit scores of the borrower, much more so than a regular refinance. Most Helocs offer interest-only payments, and allow you to pay off the balance and re-use the line over and over again for from five to ten years.

Pena Lending Group recommends to many of its clients that they get lines of credit opened even if they don't need any cash right now, for any future needs. At little or no cost, they are valuable in the event of a crisis or opportunity arises where cash is needed and difficult to obtain elsewhere.

Home Equity Loan. These loans offer cash out at fixed rates, offering much more stability than a Heloc. The disadvantage is that once you pay the balance down you cannot draw upon the loan again as you could with a Heloc.

No Closing Costs. We have access to no- or low- cost Home Equity Lines and Loans. The closing costs for these types of loans is usually very cheap in the first place, but by bumping up your rate and/or adding a prepayment penalty the banks will eliminate most or all your upfront costs.