The mortgage business can be confusing. That’s why we’ve tried our best to answer some of the most common questions we get when dealing with a new client:

Why would I choose a mortgage broker over a regular bank?

Good question! Banks offer many different services to their customers. And yes, it’s true they’re a great resource for mortgages, home equity and refinance loan packages; however their rates are generally not as competitive as the ones a mortgage broker is able to extend. That’s because it costs money to offer additional banking services to customers. Aside from offering you lower rates, opting to work with a broker is also quite popular. Did you know that there are over 20,000 mortgage brokers in the United States who account for 50% of the mortgages that were lent?

What’s so great about debt consolidation?

The simple truth is credit card companies have their best interest in mind, instead of their customers’. It’s a well-known fact that if you have $3000 charged to a typical credit card that accrues 19.8% annual interest, it will take you 39 years—and $13,538 additional dollars, to pay it off in full (assuming 2% payment of balance or $15 rate whichever is greater). Credit cards are expensive and the costs are not contained.

Credit card companies keep you in debt with:

• High cash advance charges (they can run as high as 32%)
• Misleading interest rates (12% advertised may compound up to 21%)
• Costly balance calculation methods (steer clear of daily averages)
• Phantom grace periods (be warned, interest adds up very quickly)
• Backdated interest charges (you pay interest on your interest. Despicable huh?)
• Endless, very low, minimum payments (why would they want you to pay off their balances if they can make several thousand dollars more over the long term?)
• Various fees on top of an annual fee (call add $100 or more to your cost).

Doesn’t it make sense to pay off the credit card now?

Am I limited to what I can do with my cash if I choose a “cash out” option?

Nope, there’s no limitation or stipulation on how you spend your cash out dollars. We’ve had customers use the money to buy a new car or to build a cabin in the mountains. Many have sent themselves and their kids to college too. So the options are unlimited.

My adjustable rate mortgage payments are too high. What can you do for me?

One of the most common reasons why people refinance is to lower that monthly mortgage payment. Call a Carolina Coastal Mortgage Funding specialist today to get a complete analysis of your personal situation to help decide which alternative is best for you.