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TAXES AND DEDUCTIONS

NOTE: Embrace is not a tax advisor. Please consult a professional for further information regarding the deductability of interest and charges.

How do I get my mortgage interest statement?

Your mortgage lender will send you a Form 1098, also called a mortgage interest statement, by February 1 following each tax year. This should detail how much you paid for interest, principal, mortgage insurance, and more across the year. You can use this to calculate your various deductions.
Most lenders send these forms via snail mail, though you may be able to download yours online, too. Check with your servicer to see if they offer an online dashboard or customer center you can utilize.  If your loan is serviced by Rushmore, visit this link to learn more about how to access your 1098.
Homeowners are allowed to write off their property taxes, but there are some caveats to doing so. First, you must itemize your returns. This means forgoing the standard $12,400 deduction ($24,800 for a couple filing jointly), and instead writing off many smaller deductions in its place. If you do opt for this route, deductions for state and local taxes (property taxes included) are capped at $10,000. Be sure to speak with a tax professional before making any decisions.
There could be a few. If your upgrades improved the efficiency of your house — meaning reduced the amount of energy it uses — there may be other deductions you can leverage as well. If you added solar panels or another alternative energy source, for example, you can write off 26% of your costs (in 2020). If you added energy-efficient windows or doors, installed a natural gas water heater, or updated your insulation, you’ll enjoy a tax credit of up to $500.

Be sure to speak with a tax professional before making any decisions.

You can deduct interest on up to $750,000 in mortgage debt. This can be spread across both a main, primary residence and a second home. So if your first home has a mortgage of $200,000 and your second home a mortgage of $500,000 ($700,000 total), you’d be able to write off the full amount of your interest paid across the year.

The IRS does not allow you to write off interest on third homes or beyond. If you own an investment property, you’ll likely deduct its interest and other costs as business expenses. Be sure to speak with a tax professional before making any decisions.

Homeowners enjoy a slew of tax write-offs that other Americans just don’t have access to. You can deduct the interest you paid on your mortgage, your property taxes, and much, much more. See this list for a full breakdown of potential write-offs.

The exact deductions you’ll be eligible for will depend on what activities you took part in last year. Please be sure to speak with a tax professional before making any decisions. See below for more detail:

If you bought a home…
If you just purchased your home last year, then you’ll want to check your closing statement. If you paid for points (listed under Section A of the loan costs section), you may be able to write the costs of these off. If you itemize your returns, you’ll also be eligible to deduct your private mortgage insurance costs and the interest you paid on your mortgage — both at closing and across the year — and your property taxes, too.

If you sold a home…
As long as you made less than $250,000 in profits on the transaction ($500,000 if you file jointly with your spouse) and you lived in the house at least two years, you’ll be exempt from paying capital gains taxes on your home sale. This could save you significantly on your tax liability.

Additionally, you’ll also be eligible for deductions for your interest, mortgage insurance, and property taxes before you sold the house (and on your new home, if you bought another after).

If you refinanced your mortgage…
Refinancing is much like purchasing a new home. If you paid for points or prepaid interest at closing, these can be deducted from your annual tax returns. You also may be able to write off things like mortgage insurance, property taxes, and interest paid across the year.

If you stayed in the same home..
If you neither bought, sold, or refinanced last year, but instead stayed in the same home as the year prior, you’re still eligible for some write-offs. Use this list to guide you.

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FORBEARANCE

Do I need to make my mortgage payment during this pandemic?

If you are able to make your mortgage payment please do so. Yes.
Anyone who is currently experiencing financial hardship due to COVID-19 is potentially eligible for assistance.
There are many options for assistance and this varies depending on your personal situation.
Your loan servicer.

After a loan has closed, sometimes Embrace remains responsible for the Loan servicing, and sometimes the servicing responsibility is transferred to another.

If Embrace retained the servicing of your loan, then your loan would be serviced right now by Rushmore Mortgage Services on behalf of Embrace, and you should be making your monthly mortgage payments to Rushmore.

If the servicing of your loan was transferred, then you should contact the company to whom you are making your monthly mortgage payments for further information about your options for COVID relief.

What is the contact information for
Rushmore Mortgage Services:
888.504.6700
Monday – Friday 8:00AM – 6:00PM CST
https://www.rushmorelm.com
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REFINANCE

Can you refinance with a Conventional loan?

The answer is yes. You can refinance with a Conventional loan and lower your current mortgage payment, change terms, or convert from an adjustable-rate mortgage (ARM) to a fixed-rate mortgage. The two most important things you’ll need to refinance are a good credit score and a successful appraisal of your house. A rate and term refinance could deliver big savings.
A HELOC and a cash-out refinance both use the equity in your home to get you the cash you need for other expenses. HELOCs work somewhat like a credit card. There is a draw period where you use what you need, when you need it. During the draw period, you are typically making interest-only payments, and the interest rate is usually adjustable.

With a cash-out refinance, you replace your current mortgage with a new mortgage to help with expenses such as tackling home improvements or paying off other debt. With a fixed-rate cash-out refinance, you know exactly what your rate will be and what you will pay each month.

The best option for you depends on your financial need and situation. Embrace does not offer HELOCs, but our mortgage specialists can help you decide.

No, not at all. While a 15-Yr Fixed Rate and Term Refinance is one of the lowest fixed rates available and you could save significantly over the life of the loan plus shorten the term of your loan, it might not be right for you.

There is also a 30-Yr Fixed Rate and Term Refinance, which is set at a longer term to accommodate your budget restraints (different rates and terms might apply). It can be most helpful if you need some extra cash monthly and either don't have enough equity or don't want to use it. You can then use the extra cash each month to:

  • Take care of climbing expenses.
  • Pay down other high-interest debt.
  • Provide you a little financial relief each month.
Refinancing is simply the process of replacing your existing mortgage with a new one with a lower rate and/or better terms. It can help you realize your dreams and it doesn't get any easier than with Embrace Home Loans.
There are many great reasons for refinancing, including:
  • You’d like to lower your interest rate or monthly mortgage payments
  • You need cash, fast
  • You’d like to consolidate debt
  • You’re looking to shorten your payback term
  • You want to switch from a variable-rate to a fixed-rate mortgage to create regular, predictable payments
  • You’d like to get a variable-rate mortgage with better terms
Refinancing is usually a much simpler process than buying a home. Typical steps in the process include:
  1. Research the value of your home and check your credit scores.
  2. Gather all needed documents and apply for the refinance.
  3. After your loan is approved, the underwriting process begins—the time for careful review.
  4. Sign your papers and close your loan.
Consolidating your bills by refinancing your mortgage can take other debt such as student loans, auto loans, personal loans, medical bills, and credit card balances and roll them all into one, easy payment.
When you refinance with Embrace, you can get a loan to take cash out, lower your payment, shorten your term, or even do a combination of those, depending on your qualifying numbers. 
When you use the equity in your home to get money via a cash-out refinance, you can use that money for anything you choose. You can pay off your credit cards, eliminate student loans, make home improvements, start a new business, or even put a down payment on an investment property.
During a complimentary, no-obligation mortgage review, one of our loan specialists will take a close look at your current mortgage to see if they think it’s still the best financing option for your needs and goals. Considering today’s historically low interest rates, a mortgage review makes a lot of sense. As part of your mortgage review, you’ll find out if you can:
  • Lower your interest rate
  • Reduce your monthly payments
  • Shorten your loan term
  • Refinance out of an adjustable-rate mortgage (ARM) or into an ARM
  • Use your home equity for renovations or to meet other needs
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PURCHASE

What does it mean to be pre-qualified?

A simple first step in the mortgage process is getting pre-qualified. Embrace Home Loans can pre-qualify you over the phone or online. We’ll go over your information and discuss your goals. Shortly thereafter you’ll get your pre-qualified amount — the amount for which you might expect to be approved for a loan.
Not only will a good score help you qualify for a home loan, but it will also help you get the lowest rate possible. In fact, your credit score is the most important piece of the puzzle when it comes to your mortgage rate. The higher your score, the lower the interest rate. And on a loan as large as a mortgage, just one percentage point up or down can add up to a significant amount of money.
Your credit score is calculated with a mathematical formula. It uses information in your credit report and compares it to information on tens of millions of other people. The resulting number is a highly accurate prediction of how likely you are to pay your bills. People with the highest credit scores get the lowest interest rates. Your credit score considers both positive and negative information in your credit report. Late payments will lower your credit score, but establishing or re-establishing a good track record of making payments on time will raise your score. Call 800-333-3004 to speak to a Loan Officer to get more information.
Improving your score is not impossible. There are things you can do right now to begin improve your credit score, including:
• Get copies of your credit reports and stay on top of them
• Set up payment reminders and pay your bills on time
• Focus on reducing your debt

Mortgage underwriters are basically interested in two things: can the buyer repay the mortgage and what is the value of the property should the buyer be unable to pay back the mortgage? Knowing this can help you better prepare for the underwriting process.
At closing, you’ll sit down with those involved in your real estate transaction and sign all the legal documents needed to give you ownership of your new place. You’ll also be responsible for paying closing costs, which are typically 3–4% of your home’s purchase price.
Closing costs can be divided into two main categories: the lender and third-parties out of the lender's control. Lender fees include any costs associated with processing your loan, such as prepaid interest,, discount points, origination charge, and any rate lock fees. Third-party fees include fees paid for services performed by parties other than the lender – either imposed by the state or local government, or by the individual vendors that provide the service. They also include pre-payments for taxes and insurance that are placed in an impound or escrow account. Third-party fees include appraisal fees, title service fees, and government recording fees.
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HOMEBUYING 101

Why should I buy a home?

Owning your own home gives you a sense of belonging with of your community, and the pride of knowing that you reached your goal of attaining homeownership. Interest payments are typically tax-deductible, and you’ll be building equity each month with your mortgage payments instead of lining your landlord’s pockets.
That’s a question only you can answer, because there are benefits to both. Buying could be a better deal for you if you plan on living in your home for at least three to five years. The type of loan you choose also comes into play. Give our Rent vs. Buy calculator to weigh your options.
Factors to consider include price, interest rates, location, and your financial situation. When interest rates at or near record lows, they aren’t likely to go lower, so waiting for them to drop even more is risky. Only you can determine if you’re ready to buy! Just make sure you have a stable job, and you plan on staying in the home for at least three to five years. You should also have enough money to save for a down payment and closing costs. Use our helpful mortgage calculator to see how much home you can afford.
Everyone's financial situation is different, so it’s important to figure out what you can comfortably afford to borrow, which depends on four factors:
  • Your debt-to-income ratio (your total monthly payments as a percentage of your gross monthly income)
  • Cash you have available for a down payment and closing costs
  • Your credit history
  • The value of the home you’re buying
How much home can YOU afford? Use our handy mortgage calculator and find out!
Loan-to-value (LTV) tells you how much equity you have in your home relative to how much you owe on it and what the house is worth. LTV is important to know when refinancing because it can affect your interest rate and whether or not you’ll need Private Mortgage Insurance (PMI).
Getting a home appraisal is a standard part of the mortgage process. Lenders like Embrace will give customers a loan based on the appraisal value of the property they’d like to buy or refinance. Appraisals are conducted by 3rd party companies and are not influenced by Embrace Home Loans. Home appraisals are determined by comparing recently sold, comparable homes in the same neighborhood as your home or the home you are interested in purchasing or refinancing. The appraisal company provides a report to Embrace after the appraisal is conducted.  Quite simply, when you use a home for collateral for a loan, the lender wants an appraisal report to make sure the loan will be guaranteed by the value of the property.
When you first meet or speak with a loan officer, they’ll just want to learn a few basics about you and your financial situation. Once the loan process gets started, you’ll need to provide proof of where you work, your income, any debts you may have, your assets, and how much you plan to put toward a down payment. Our loan officers will clearly explain your mortgage options and answer all your questions so you feel confident in your decision.
The time needed to complete the mortgage process varies by customer and lender because it includes gathering information from a customer, verifying that information, and processing the actual loan. The average amount of time to close on their home purchases is 47 days across all loan types, according to Ellie Mae. Purchase loans generally take longer to close than refinance loans by an average of 12 days. Factors such as the loan type and contract dates can affect closing times.
Short answer — no! It’s actually smarter to get started on the process before you find your dream home. Other lenders offer pre-qualifications. But our Approved to Move™ program gives you much greater bargaining power, because it’s the next best thing to a cash offer, which will make you very appealing to sellers. 
Your mortgage payment may include additional costs like your homeowner’s insurance and property taxes. We can add the monthly portion of each of those accounts to your mortgage payment. That money is held in an escrow account managed by a third party to make sure those costs are paid on time.
The higher your credit score, the better your financing options will be.  But you can get approved with a credit score as low as 640, as long as you meet the other loan requirements.
Actually, yes you can. If you’ve paid off all your debt, it’s possible that you won’t have a credit score when you apply for a mortgage. You’ll just need to supply some additional paperwork so the underwriter can review it personally – it’s a process called manual underwriting, and it might make the mortgage process take a little longer than usual.
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EMBRACE

What is the difference between Embrace, my local bank, and a broker?

In short: no middle man. As a direct lender for Fannie Mae, Freddie Mac, and an approved issuer for Ginnie Mae, we underwrite our loans. We are not a broker or a lead reseller and we never take your call and then pass your application off to someone else. Your Embrace Home Loans Mortgage Specialist works directly with you through the entire loan process — from beginning to end. This kind of personalized service means we can truly get to know you, and provide impeccable service that perfectly fits your needs. It also means we can offer better interest rates and terms — all while keeping you completely informed with real-time, up-to-the-minute information regarding your loan. There’s simply no better way to go through the mortgage process.

Nope. It’s a great way to move into a home you love today. And down the road when rates tumble, you can refinance with an even lower rate — without any penalties.

It’s similar to paying points in order to get a lower rate, only you don’t pay. The seller or lender pays the upfront fee for you, and it’s put into an escrow account. Depending on the program you choose, you could lower your rate 3%, 2%, or 1% a year.

If you’re looking for lower payments for the first few years of your mortgage — that’s exactly what you’ll get. If you like saving money on interest — bingo. That happens, too.

Think you’ll want extra cash to buy furniture or window treatments for your new home? You’ll have it. Do you anticipate making more money a couple years down the road? Are you a stay-at-home parent planning to return to work soon? In each of these situations, Deflate the Rate is ideal.

With Deflate the Rate, our new temporary buydown program, you can get a reduced rate for the first one to three years of your mortgage. This results in lower monthly payments and long-term savings.

While your specific pre-qualified offer may have expired, you should still reach out to an Embrace mortgage specialist to speak with them about your options, learn about today’s rates, and receive a no-obligation mortgage review.
If you received an offer in the mail from Embrace, your Personal ID Number will be located next to your offer details. Have your number ready when you speak to one of our expert loan officers as it will help us pull up your specific offer in our system and save time on your application.
For more than 36 years we’ve been helping tens of thousands of people just like you purchase new homes, refinance existing mortgages, and consolidate high-interest debt. CONTACT US now to find out how we can help you make your dreams a reality.

Yes you can!  Please use the following link to make payments. If you do not have an account you must create one the first time.

You can view the status of your loan at any time by logging into our Client Portal. We recommend saving this link in your web browser for future use, but you can always find the link here or in past emails from your Embrace loan officer.
Rushmore Loan Management Services began servicing new loans funded after January 2, 2020. As of March 2, 2020, all existing customers serviced by RoundPoint (on behalf of Embrace Loan Servicing) will be transferred to Rushmore. No need to worry, though — you are still an Embrace customer and Rushmore is just one of our trusted partners.
No; we apologize for any inconvenience. If you had an electronic payment set up with RoundPoint, your electronic payment authorization will not be transferred and you will be required to establish a new electronic payment schedule with Rushmore. You’ll need to contact Rushmore directly to set up your new automatic payment. We apologize for any inconvenience, but truly appreciate your understanding during this transition.

A Home Equity Line of Credit (HELOC) is a line of credit that allows you to borrow against your home equity.

HELOCs usually have a variable interest rate that changes over time. For most HELOCs you can borrow money for a specified time. During this time, known as the “draw period,” you can make multiple withdrawals and may make monthly payments. When the draw period ends, you may no longer be able to borrow money from your line of credit, and you may make monthly payments to repay your outstanding principal and interest over a period of time. During this time, known as the “repayment period,” you may not be able to borrow additional amounts.

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FINANCING

What does it mean to be pre-approved?

Pre-approval is more involved and carries more weight than pre-qualification.  With Embrace, this process will be as simple and streamlined as possible so you can start finding your new home. We’ll calculate the specific mortgage amount for which you are approved. You'll also have a better idea of the interest rate you will be charged on the loan and, in some cases, you might be able to lock-in a specific rate. With pre-approval, you will receive a conditional commitment in writing for an exact loan amount, allowing you to look for a home at or below that price level. Obviously, this puts you at an advantage when dealing with a potential seller because it’s clear you are very close to obtaining the financing you need.
An appraisal is the step in the mortgage process when the value of your property is verified by a third-party appraiser. Fannie Mae and Freddie Mac have concluded that, in some instances, they do not need a formal appraisal and can instead rely on their data models to determine the value of your property. If your home qualifies, you will save both time and money when you refinance your mortgage.
If you applied for your original FHA home loan prior to June 3, 2013, you may be able to perform and MIP cancellation (also known as MIP Elimination). To understand how much you pay in mortgage insurance on top of your principle and interest, check your monthly mortgage statement or give an Embrace expert a call for a no-obligation mortgage evaluation.
If you’re currently required to carry mortgage insurance, there is light at the end of the tunnel: you don’t have to keep it for the entire length of the loan. You can pay your loan down faster by paying more than the required minimum each month, which will help you build equity in your home faster. Then, once you have at least 20% equity in your home, you can request to eliminate the mortgage insurance premium all together. You can also refinance with Embrace, and if your new loan-to-value (LTV) is below the required threshold, you may not have to pay mortgage insurance on your new loan at all.
High interest rates bring higher monthly payments and increase the overall interest you’ll pay over the life of your loan. A low interest rate saves you money in both the short and long term. Sometimes a bigger down payment can help you get a lower interest rate. Keep in mind that the money you pay in interest doesn’t ever go toward paying off the principal, so it’s smart to get the lowest interest rate possible and then pay off your house as quickly as you can.
Rates are complicated and can be tricky to understand. Simply CALL US and we’ll help you compare your rate quotes. We’re happy to take you through estimates line by line — ensuring you know what every item means to you and your bottom line. Comparing mortgage rates can be confusing because there are so many factors — from taxes to title insurance — that contribute to calculating your mortgage payment and closing costs. No one is expected to understand it all from the beginning, but we’ll make sure it all makes perfect sense to you in the end.

Simply put, mortgage insurance is a policy taken out on your loan that protects the lender in the event of default or foreclosure. Of course, no one expects to default on their mortgage, but life isn’t always predictable and lenders need assurance that they will get their money back in the event your financial health takes a turn for the worse.

In this scenario, the lender is the beneficiary if you default on the mortgage loan for any reason.

How much money you need depends on the type of loan and the purchase price. We recommend that you have at least 3.5% for a down payment on an FHA loan. You’ll also want to be aware of closing costs, which are typically between 2% and 6% of the purchase price. There are also benefits to putting more down in some scenarios – such as the ability to get a Conventional loan without mortgage insurance if you have a down payment of 20% or more.
A typical monthly mortgage payment includes the principal, interest, homeowners insurance, property taxes, and private mortgage insurance (PMI) if you put down less than 20%. You can pay more on your mortgage each month, but make sure you specify that you want the extra money to go toward the principal only (vs. prepaying interest).
The best way to start any mortgage process is with the help of a lender that's 100% on your side — and that's Embrace Home Loans. Simply call 800-333-3004 or fill out our quick, no-obligation and confidential GET A QUOTE FORM now. Your Mortgage Specialist will start working right away to find your ideal mortgage and will be with you every step of the way. This streamlined, personalized approach means the entire process will be as simple and stress-free as possible. In fact, it can all be wrapped up in as little as 21 days after receiving all your documents. There's just no better way to take the next steps toward a better financial future.
Private mortgage insurance (PMI) is an insurance policy that protects your lender in case you default on your mortgage. You may be required to purchase it, especially if you plan to make a down payment of less than 20% of your home's purchase price, which means you have a loan-to-value ratio (LTV) greater than 80%. PMI is purchased through a third-party insurance company and paid via your monthly mortgage payments. How much it costs depends on several factors, but once your LTV is below 80%, you can refinance your mortgage to get rid of the PMI.
Paying discount points means you can lower or “buy down” your interest rate (as well as your monthly payment) over the life of your loan. One point equals 1% of your loan amount. When you pay a point, you are essentially paying part of your interest to the lender up front. So if you have the funds, buying down your rate is a good way to reduce the total amount of interest you’ll pay over time.
Think interest rates are on the way up? Then “locking in“ your interest rate before you close may be a great idea. This simply means your lender "freezes" your interest rate—typically between 15-90 days—before you close.
No, but they are very close. The interest rate is how much it costs to borrow the money from your lender. The APR is the total cost of your mortgage and accounts for additional fees like closing costs, origination charges, lender points, and private mortgage insurance (PMI).
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LOAN TYPES

Can I take advantage of Embrace’s No Down Payment program if I have owned a home before?

The No Down Payment program from Embrace Home Loans is not exclusive to first-time homebuyers – so if you have owned a home previously, you may still qualify. You do need to have a FICO score above 660+ and be looking to purchase a single-family home to take advantage of this program.
At Embrace Home Loans, we have the loan that's right for you and the expertise to pinpoint precisely which kind of loan that may be. From conventional mortgages — both Fixed and Variable-rate — to easier-to-qualify-for loans like FHA insured, VA or HARP 2, we offer a broad range of options, and will not rest until we find the ideal loan for you.

The most common types of mortgages are Conventional loans and FHA loans. Understanding your options and the requirements for each mortgage can help you figure out which one is right for you. Because there are many different types of loans, every borrower should choose the mortgage and the lender that’s best for their specific needs.

Conventional
Many homebuyers prefer a Conventional loan with a fixed rate because the costs accompanying the loan are usually lower and you can often purchase a more expensive home. But because this type of mortgage is not backed by the government, they’re sometimes harder to qualify for than other loans. If you have a solid credit score, a Conventional mortgage may be a great mortgage option.

FHA
FHA loans are backed by the government so they’re one of the easiest types of mortgages to qualify for. At Embrace, we accept FICO® scores of 580 and above, along with down payments as low as 3.5%. On top of that, the down payment and closing costs can often be covered with gift funds. An FHA loan can be ideal for first-time homebuyers or borrowers who have challenging credit.

USDA
For homes in an area designated as rural by the U.S. Department of Agriculture, a USDA loan is often the way to go. And believe it or not, many suburban neighborhoods qualify as rural. With our USDA loans, you can enjoy zero down payment, below-market mortgage rates, and no private mortgage insurance.

VA
Veterans and those in the military love our VA loans. A VA loan is easier to qualify for than other types of mortgage loans, and it requires little or no down payment. Because VA loans are backed by the Federal Government through the U.S. Department of Veterans Affairs (VA), they also have better interest rates than traditional mortgages.

Jumbo
A Jumbo loan is used to finance a property that’s too costly for a Conventional conforming loan. Our Jumbo mortgages are simpler than many others, and they’re usually easier to qualify for. We offer as little as 10% and 20% down payment for loans up to $2 million and $3 million, respectively. We also offer Jumbo options for borrowers with credit scores below 740.

Sometimes buying a home that fits your needs, budget, and lifestyle can be a challenge, especially in an environment with low interest rates and high demand. Luckily, we can help with that. Embrace has several exclusive mortgage loan programs that make buying a home more convenient and doable.

Approved to Move™
When you find the house of your dreams, you want to be ready. With Approved to Move™, you get a fully underwritten approval before you find a home. Sellers love Approved to Move™ because it’s virtually as good as a cash offer, which helps you stand out from other potential buyers.

Guaranteed On-Time Closing (GOTC)
Whether it’s your first home purchase or your tenth, no one wants to miss their closing. With our Guaranteed On-Time Closing (GOTC) program, we’re so confident that we’ll meet the date, we put money on it. $2,500 to be exact.

Extended Rate Lock
Interest rates are always on the move and even a small change can have consequences. Our Extended Rate Lock program gets rid of those worries. We can lock your mortgage rate for up to 9 months, allowing you to buy or build a home with confidence.

Programs for homebuyers with limited income
Having a limited income shouldn’t stop you from getting a mortgage loan to purchase a home. That’s why we offer Fannie Mae’s HomeReady® and Freddie Mac’s Home Possible®. With these programs, your FICO® Score can be as low as 620 and you can put down as little as 3% — and many types of down payment sources, such as gift funds, are acceptable.

Thinking about making some changes to your home? We can help make it happen. We offer two types of 203(k) loans, the FHA Full 203(k) and the FHA Limited 203(k), along with Fannie Mae’s HomeStyle renovation loan. Instead of managing two different loans, you can finance the expense of home repairs or a remodel with one mortgage refinance. And this way, you can take advantage of a low interest rate, too.

There are a number of good reasons to refinance your mortgage loan, especially when interest rates are low — and it’s not as complicated as it sounds. We offer several refinance loans, such as our cash-out refinance, debt consolidation refinance, and rate-and-term refinance, along with others.

Want lower monthly payments or a shorter loan term? Play with our refinance calculator to discover how a refinance loan might benefit you.

How can I find out if I qualify for a mortgage loan?

We’ve made it simple. If you’re not sure whether you qualify or you’re wondering how much loan you can afford, the first step is to get pre-qualified.

Embrace is the first mortgage lender to offer pre-qualification through text. Now, you can get pre-qualified in minutes right from your phone. Text PREQUALME to 22722. There’s no obligation, no cost, and no impact to your credit score.

Learn more about the mortgage loan process here.

How is my monthly payment calculated?

To calculate your monthly payment, we use your loan type, home price, interest rate, and loan term. Use our mortgage calculator to estimate your monthly mortgage payment. It will show different examples of what your loan size and monthly payment might be.

What documents do I need to provide to apply for a mortgage loan?

When applying for a home loan, you’ll need to provide documentation for income verification, credit verification, and financial history. The following docs will be required:

  • W-2 and tax return
  • Proof of income, such as pay stubs
  • Driver's license or ID
  • Credit report
  • Bank statements of assets, including gift funds
  • Rental history

Get started on your 15-minute loan application today!

A second mortgage is a lien taken out on a property that already has another mortgage attached to it. In the case that the loan goes into default, the first mortgage will be paid off first before the second mortgage. Therefore, a second mortgage is typically riskier for lenders and will often come with a higher interest rate. Interest-only payments means that for a period of time, the payments you make on the loan go 100% towards the interest that is accruing on the mortgage. And a balloon payment means that, at the end of the term of the loan, the balance of the mortgage is due all at once.
• Applicants must meet the standard loan program credit qualification requirements.
• The property must meet renovation loan requirements.
• An appraiser’s estimate of what the property value will be with completed improvements must support the mortgage amount.
• Down payment and closing cost requirements may vary depending on the loan type.
Complete a VA Form 26-1880, Request for a Certificate of Eligibility: You can apply for a Certificate of Eligibility by submitting a completed VA Form 26-1880, Request For A Certificate of Eligibility For Home Loan Benefits, to VA along with proof of military service. Embrace may also be able to obtain a Certificate of Eligibility for you in some cases.
Depending on the financing option you choose, improvements can range from basic repairs to minor updates and upgrades to more extensive remodeling and renovations, including bringing severely damaged or neglected properties up to habitable, insurable standards.
Properties that are sold “as-is” often would not qualify for a standard FHA loan. 203(k) loans, however, are designed to improve, update, and modernize the home.
Yes, your eligibility is reusable depending on the circumstances. Normally, if you have paid off your prior VA loan and sold the property, you can have your used eligibility restored for additional use. On a one-time only basis, you may have your eligibility restored if your prior VA loan has been paid in full even if you still own the property. Also, if you still own the property associated with a prior VA loan, you may still be eligible for another VA loan. Contact an Embrace loan officer for more information. You must contact the VA Eligibility Center with the appropriate information in order to have your ability restored.
Standard Form 180, Request Pertaining to Military Records, is used to apply for proof of military service regardless of whether you served on regular active duty or in the selected reserves. This request form is NOT processed by VA. Rather, Standard Form 180 is completed and mailed to the appropriate custodian of military service records. Instructions are provided on the reverse of the form to assist in determining the correct forwarding address.
It depends. If a veteran has already used a portion of his or her eligibility and the used portion cannot yet be restored, any partial remaining eligibility would be available for use. Contact Embrace to help determine whether the remaining balance would be sufficient for the loan amount requested, and whether any down payment may be required.
The children of an eligible veteran are not eligible for the home loan benefit. An unmarried surviving spouse of a veteran who died on active duty or as the result of a service-connected disability is eligible for the home loan benefit. If you wish to make an application for the home loan benefit as a surviving spouse, please reach out to us. In addition, a surviving spouse who obtained a VA home loan with the veteran prior to his or her death (regardless of the cause of death), may obtain a VA guaranteed interest rate reduction refinance loan. For more information, contact an Embrace Loan Specialist today.
Conventional mortgages are typically underwritten according to the guidelines set by Fannie Mae and Freddie Mac. These come in two different types: fixed-rate and variable-rate mortgages.
FHA insured loans are mortgages that are insured by the Department of Housing and Urban Development — which means the government is essentially guaranteeing it will pay the mortgage if you cannot. FHA insured loans require a much lower down payment on a house than most other financers…usually just 3.5%. Plus, qualifying for an FHA insured loan is often easier than qualifying for a conventional mortgage — making it attractive for homebuyers and homeowners alike.
A fixed-rate mortgage is perfectly predictable because you never have to worry about your interest rate or your mortgage payments going up. That means they are easy to budget for over the long term (usually 15 or 30 years). Variable-rate mortgages, also known as adjustable-rate mortgages (ARMs), are more complicated than fixed-rate mortgages. Their initial interest rate will usually be lower than a fixed-rate mortgage. However, the interest rate of the mortgage will change over time, and as a result, your payments may go up or down accordingly. Many factors, like how long you intend to keep your home, go into determining which is right for you.  An Embrace loan officer will help you determine the exact loan that’s right for you based on your unique needs.
VA Loans are specifically for Veterans and are backed by the Department of Veterans Affairs (VA). These loans allow Veterans to buy a home with little or NO down payment and are easier to qualify for than conventional mortgages. To be eligible, you need to have served at least 181 days of active duty or at least 6 years in the National Guard.

With so many mortgage options out there, it can be hard to know how each would impact you in the long run. The most common mortgage loan types are:

  • Adjustable-rate mortgage (ARM)
  • Federal Housing Administration (FHA) loan
  • Department of Veterans Affairs (VA) loan
  • Fixed-rate conventional loan
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