Question 1

What credit score do I need to buy a home?

Accepted Answer

There is no single magic number — it depends on the loan. Conventional loans usually look for about 620 or higher, FHA loans can go as low as 580 with 3.5% down (or 500–579 with 10% down), and VA and USDA loans have more flexible credit guidelines set by the lender. As a broker, EON compares programs across many lenders to match your credit profile. All loans are subject to underwriting and credit approval.

Question 2

How much down payment do I need to buy a home?

Accepted Answer

Often a lot less than 20%. Eligible VA and USDA loans can be 0% down, FHA is as low as 3.5%, and conventional loans range from 3% to 20%.

A smaller down payment usually means paying mortgage insurance until you build enough equity. EON helps you find the lowest down-payment option you qualify for and weigh the trade-offs.

Question 3

How long does mortgage pre-approval take?

Accepted Answer

Once you share basic income, asset, and credit details, a pre-approval can often come together quickly — sometimes the same day. Exact timing depends on your documentation, the lender, and the loan program.

You don’t need a full application to start — a short request or a quick call is enough for a useful first step, at no cost and no credit pull.

Question 4

Why use a mortgage broker instead of one bank?

Accepted Answer

A bank can only offer its own products. As a mortgage broker, EON shops your loan across a broad lender network — which often opens up more options when your credit, down payment, property type, or timing don’t fit one narrow box.

You fill out one application, and we bring back choices to compare.

Question 5

What types of home loans does EON offer?

Accepted Answer

For purchases: Conventional, FHA, VA, USDA, Jumbo, DSCR (for investors), and renovation loans. For existing homeowners: rate-and-term refinance, cash-out refinance, and home equity options.

We compare lenders to match the program to your goals.

Question 6

What is mortgage refinancing?

Accepted Answer

Mortgage refinancing means replacing your current home loan with a new one — often to get better terms or meet a financial goal. People refinance to lower their interest rate, reduce their monthly payment, shorten their loan term, or change their loan type. There are two common types. A rate-and-term refinance changes your interest rate, loan term, or both, without taking out equity. A cash-out refinance replaces your mortgage with a larger loan and gives you part of your home's equity as cash — for things like home improvements, debt consolidation, or other major expenses. At EON Mortgage Simplified, we compare loan options from multiple lenders to help you find the refinance that best fits your goals.

Question 7

When does refinancing make sense?

Accepted Answer

Refinancing can make sense when you want to lower your rate or monthly payment, shorten your loan term, switch from an adjustable rate to a fixed rate, remove mortgage insurance, or tap your equity for cash. Whether it is worth it comes down to your rate, your remaining balance, how long you plan to stay in the home, and the closing costs. We are happy to run the numbers with you so the answer is a clear yes or no.

Question 8

What is a cash-out refinance, and how is it different from a HELOC?

Accepted Answer

A cash-out refinance replaces your existing mortgage with a new, larger loan and gives you the difference in cash. It usually comes with a fixed interest rate and a new loan term. A HELOC (home equity line of credit) is a separate loan that works alongside your existing mortgage. It is a revolving line of credit you can borrow from as needed, and it usually has a variable interest rate. A cash-out refinance can be a good fit when today's rates are lower than your current rate, or when you want to combine your mortgage and equity into one loan. A HELOC can be the better choice when you want to keep your current first mortgage and only tap your equity when you need it.

Question 9

How much does it cost to refinance?

Accepted Answer

Refinance closing costs usually run a few percent of the loan amount and vary by lender, loan size, and state. In some cases, part of the cost can be rolled into the loan instead of paid upfront. We review the full estimate with you before you commit. Figures are estimates, not an offer.

Question 10

Will refinancing restart my loan term?

Accepted Answer

Yes — when you refinance, your existing loan is paid off and replaced with a new one, so you get to choose a fresh loan term such as 10, 15, 20, or 30 years to fit your goals. A new 30-year loan does reset the clock, but you can pick a shorter term to stay on your original payoff timeline. Refinancing may also help you secure a lower interest rate, reduce your monthly payment, access your home's equity, or switch to a different loan program, depending on your eligibility. We compare term options so the new payment and payoff timeline match your plan.

Question 11

How long does a refinance take?

Accepted Answer

A refinance typically takes about 2–4 weeks. The timeline depends on the complexity of your loan, how quickly you provide documentation, appraisal requirements, the lender's processing times, and the loan program you choose. For a refinance on your primary residence, federal law also gives you a three-business-day Right of Rescission (right to cancel) after closing before the loan is funded. All loans are subject to underwriting, credit approval, and program guidelines.

Question 12

What is a HELOC and how does it work?

Accepted Answer

A HELOC (home equity line of credit) is a revolving credit line secured by the equity in your home. It works a bit like a credit card: you are approved for a limit, borrow what you need, repay, and borrow again during the draw period — and you pay interest only on the amount you have actually drawn.

Question 13

What is the difference between the draw period and the repayment period?

Accepted Answer

A HELOC has two stages. During the draw period (often about 10 years) you can access funds and often make interest-only minimum payments. When the draw period ends, the repayment period (often 10 to 20 years) begins: the line closes to new borrowing and you repay principal plus interest, so the monthly payment usually goes up — sometimes noticeably.

Question 14

How much can I borrow against my home's equity with a HELOC?

Accepted Answer

Lenders usually cap your combined loan-to-value — all the loans on your home divided by its value — at around 80%. A rough estimate: home value times 80%, minus your current mortgage balance. For example, on a $400,000 home that is $320,000; subtract a $250,000 balance and about $70,000 could be available. Your actual line depends on your credit, income, the appraised value, and the lender.

Question 15

HELOC vs. home equity loan vs. cash-out refinance, which should I choose?

Accepted Answer

All three let you tap your equity, but in different ways. A HELOC is a flexible revolving line at a variable rate. A home equity loan is a one-time lump sum at a fixed rate. A cash-out refinance replaces your existing mortgage with a larger one. The right choice depends on whether you want ongoing access, a fixed and predictable payment, or to reset your first mortgage.

Question 16

What is a HELOAN, and how is it different from a HELOC?

Accepted Answer

A HELOAN (home equity loan) gives you a one-time lump sum at closing with a fixed rate and a fixed monthly payment, like a second mortgage. A HELOC is a revolving line you draw from as needed, usually at a variable rate. Both sit behind your existing first mortgage. Choose a HELOAN when you know the exact amount and want a predictable payment; choose a HELOC when you want flexible, ongoing access.

Question 17

Are HELOC rates fixed or variable?

Accepted Answer

HELOC rates are usually variable — tied to the prime rate plus a margin set by the lender — so your rate and payment can move as the prime rate changes. Many lenders also let you lock a portion of your balance at a fixed rate. Contact EON for a personalized quote.

Question 18

Is the interest on a HELOC tax deductible?

Accepted Answer

It may be — generally only when the funds are used to buy, build, or substantially improve the home that secures the loan, subject to IRS limits, and only if you itemize. Interest on money used for other purposes usually is not deductible. Tax rules depend on your situation, so please check with a qualified tax advisor.

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