A Residential property can be described as a property that is zoned to be a single-family dwelling, one to four units, townhouse, condominium, planned unit development (PUD) and co-ops are all acceptable types of properties to qualify as a residential property.

Residential properties can be financed three basic ways:

Residential refinances are done for a variety of reasons, among the most common are lowering interest rates, lowering housing payments, reduce the amount of years that will be paid on a mortgage, sometimes to access equity within the home that would allow them to complete home improvement projects, consolidate debt outside of their home, pay for a child's schooling, maybe invest in other real estate or other projects, maybe just take a well deserved family vacation. These are just some of the reasons and benefits of a residential refinance.

Rate and Term Refinance
This is when a homeowner replaces their current mortgage, sometimes both a first mortgage and second mortgage, with another mortgage loan for the purpose of getting a better interest rate and/or loan term. Often times this is referred to as a no cash-out refinance.

Cash-Out Refinance
This is done by paying off an existing first mortgage, and sometimes a second mortgage, in addition, additional money is "cashed-out" of the equity within the home for a myriad of reasons, such as home improvements, debt consolidation, schooling, investing and just about anything else you can think of. In effect the new mortgage loan will be larger than the existing mortgage or mortgages.

Regardless of the reason that you are looking to refinance, you should know all of the facts and weigh the pros and cons carefully.

A Home Equity Loan uses a home's equity as collateral and is sometimes referred to as a second mortgage. There are two basic types of home equity loans, a closed ended loan and a line of credit. With a closed ended home equity loan your interest rate is typically fixed and you receive your total loan amount upon funding and then pay off your loan over a predetermined period of time. A Home Equity Line of Credit (HELOC) gives you access to a line of credit in which you can draw from as funds are needed.

Like a refinance loan, a home equity loan allows you to consolidate your debt by paying off existing debt, perform home improvements, invest in real estate and just about anything else. These loans are often tax-deductible too*.

*Please consult a tax advisor

A Construction Loan is a short-term, interim loan for financing the costs of building a home. This may include cost of construction, the cost of the lot and, loan expenses required by the lender.

There are two basic types of construction loans, first, a two-time close loan and second, a one-time close loan. A two-time close loan refers to a construction loans that is for the purpose of building the home and then, upon completion, it is necessary to refinance the construction loan into a long term loan. A one-time close means that your short term loan will convert to a permanent long term loan upon completion, eliminating the need for two loans. There are advantages to both types of loans.