Compare Home Mortgage Loan Options - Answers to Frequently Asked Questions
Find out more about the Beneficial Fixed-Rate Mortgage Loans
Looking for a home mortgage or mortgage refinance loan? You should ask these questions no matter where you refinance, but with us you get the answers right up front.
Q. What types of home loans can I get from Beneficial?
Q. What is the difference between conforming loans and non-conforming loans?
Q. Do your conforming loans offer cash-out refinancing options?
Q. Who would benefit from a conforming loan?
Q. Can I consolidate my debt with a conforming loan?
Q. What are the rates and terms of a Beneficial conforming loan?
Q. Which property types qualify for conforming loans?
Q. What are the requirements for a conforming loan versus a nonconforming loan?
Q.What types of home loans can I get from Beneficial?
A. We offer you two types of home refinance loans: conforming loans and non-conforming loans. Both loan options offer fixed interest rates, which means your monthly mortgage payment won't change over time.
Q.What is the difference between conforming loans and non-conforming loans?
A.
- Conforming loans: A conventional mortgage that conforms to the loan amounts and underwriting criteria established by government-sponsored enterprises. Conditions of those underwriting criteria may require some borrowers to escrow for taxes and hazard insurance and have mortgage insurance to protect against loan default. As a result, conforming loans often offer lower interest rates and lower monthly payments than non-conforming loans.
- Non-conforming loans: A non-conforming conventional mortgage has different underwriting criteria and may provide more flexibility than conforming loans. For example, escrow is optional and mortgage insurance is not required. Also, a variety of property types (i.e., 2-4 unit buildings, second homes, or investment properties) qualify for non-conforming loans.
Q.Do your conforming loans offer cash-out refinancing options?
A. When you borrow more than what's needed for your mortgage and take the extra in cash, it's called a cash-out refinancing loan. Cash-out options are subject to state limits and the purpose of the loan (i.e. debt consolidation, home improvement, etc.). If you qualify, you can use the money for anything you want including major expenses, medical bills, credit card debt consolidation or tuition.
Q. Who would benefit from a conforming loan?
A. If you prefer a fixed interest rate and fixed payments (excluding taxes and insurance) for the life of your loan, a conforming mortgage loan may be right for you. For homeowners who qualify, conforming loans typically offer lower interest rates and lower payments than non-conforming loans.
Q. Can I consolidate my debt with a conforming loan?
A. Yes. When you refinance your home you can consolidate high-interest debt with your mortgage. Mortgage interest rates are typically lower than credit card rates, so you could benefit from considerable savings. Plus, your mortgage interest may be tax deductible (consult your tax advisor). Find out more by visiting our debt consolidation page.
A. Conforming loan amounts vary by state and are based on a borrower's credit history, requested loan size, and real estate market. The minimum and maximum loan amounts for conforming loans have recently been updated. Amounts range from $30,001 to $417,000. Jumbo conforming loans are available in some real estate markets and can reach as high as $650,000.
Q. What are the rates and terms of a Beneficial conforming loan?
A. Depending on what's right for you, you may qualify for a 16-to-30-year fixed-rate mortgage. Your interest rate will depend on a variety of things, such as your credit history, assets, employment record, etc.
Q. Which property types qualify for conforming loans?
A. Our conforming loans are only available for single-family, owner-occupied homes-such as houses, condos, townhouses, duplexes, etc. We do not provide conforming loans for vacation homes, second homes, 2-4 unit properties or investment properties.
Q.What are the requirements for a conforming loan versus a non-conforming loan?
A.
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CONFORMING LOAN |
NON-CONFORMING LOAN |
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Mortgage Insurance |
Required on mortgageswith a loan-to-value ratio over 80% |
Not required |
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Escrow |
Required on mortgages with a loan-to-value ratio over 80%; optional for other mortgages |
Optional |
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Additional Protection |
Flood and earthquake insurance where applicable |
Not required |
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Prepayment Penalties |
None |
Depending on state and loan product, prepayment penalties may apply. |
A.
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Beneficial is one of the oldest, largest and most recognized names in the consumer finance industry. We have helped millions of customers get a fresh start in life, make a major purchase, send a child to college or meet unexpected expenses.
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We have several responsible lending best practices in place to protect you. For example, our "Best rate available" policy ensures that you get the lowest possible rate that you qualify for, for a particular real estate product.
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Our Net Tangible Benefits Test is a practice we use to make sure any loan transaction benefits you. Some of those benefits may include lowering your rate, reducing your loan term, saving $100 or more in monthly mortgage payments or consolidating delinquent debts.
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10-day Satisfaction Guarantee - We back up your loan with a 100 percent cancellation policy, so if you change your mind, you can cancel your loan and repay it in full within 10 days, and we will reimburse any interest charges and fees.
A. Apply Now. You can also call or visit your local Beneficial branch. Find a location near you.