- Reverse Mortgage vs. HELOC vs. Home Equity Loan
In basic terms, home equity is the percentage of your home’s overall value that you personally own. So if you owe money on a mortgage, that part isn’t included in your equity. There are multiple ways to tap into home… read more…
- Alternatives to a Reverse Mortgage
A reverse mortgage can provide you with a steady stream of income in retirement. Reverse mortgages do have risks and they can affect your ability to pass on assets to your heirs later. Fortunately, there’s more than one alternative to… read more…
- What Is the 28/36 Rule in Mortgages?
The 28/36 rule is a rule of thumb for managing your finances and a valuable tool in determining how much house you can afford. The rule says that you should dedicate no more than 28% of your pretax, or gross,… read more…
- Should I Pay Off My Mortgage Early?
Whether you experience a sudden financial windfall or just find yourself with leftover cash in your budget each month, you might be wondering what to do with those extra funds. One option is to contribute more money toward the loan… read more…
- What to Know About Divorce and Your Mortgage
Getting divorced means determining who’s entitled to assets from the marriage, which for many couples includes a home. You’ll need to decide who gets the home, which can also mean determining who’s responsible for the mortgage. There are different options… read more…
- Reverse Mortgage Scams to Watch Out For
A reverse mortgage can provide older homeowners with an additional stream of income in retirement. Reverse mortgages allow eligible homeowners to tap into their equity, without taking a traditional home equity loan. But are reverse mortgages a scam? No, but… read more…
- Fixed vs. Adjustable Rate Mortgages
Buying a home is one of the most important purchases a person makes in their lifetime. And therefore, it’s paramount that the mortgage one attains is the right type of loan for their financial needs. When deciding on a mortgage… read more…
- What Is a Co-Op and How Does It Work?
A co-op, or cooperative, is a housing arrangement in which residents of a building with multiple apartment-style units own the building jointly. Residents don’t actually own the specific individual unit where each resides but, instead, they own shares in a… read more…
- What Are Closing Costs and How Much Are They?
Closing costs accompany mortgage loans and cover the last-minute expenses and fees to close a loan. These costs can be significant – totaling as much as 2% to 5% of the loan amount. Here’s a break down of how these costs… read more…
- Pros and Cons of Adjustable-Rate Mortgages
With inflation continuing to affect interest rates, homeowners looking for financial relief may turn to their mortgages to help their overall budget. Adjustable-rate mortgages can bring interest rates down to affordable levels for borrowers, making homeownership possible during financially challenging… read more…
- What Is a 7/1 Adjustable Rate Mortgage (ARM)?
Fixed-rate mortgages finance the majority of homes across the country, allowing homeowners to make unchanging monthly payments until they repay the loan. However, fixed-rate mortgages can have expensive interest rates. While adjustable-rate mortgages (ARM) can have volatile interest rates, hybrid… read more…
- What Is a 5/1 Adjustable Rate Mortgage (ARM)?
Loan products such as 5/1 adjustable rate mortgages give borrowers reduced interest rates for five years, giving homeowners some much-needed breathing room. This can help, especially as mortgage rates have been on the rise. During the loan’s first five years,… read more…
- What Is Earnest Money?
Today’s red-hot housing market is challenging for many buyers to navigate. Rising interest rates, bidding wars and low housing supply can make purchasing a home more strenuous than usual. However, one way that buyers can stand out is with a sizable… read more…
- How Do You Pay Back a Reverse Mortgage?
A reverse mortgage is typically paid back either when you sell the home or when the homeowner passes away. They are a relatively common way for older homeowners to supplement their retirement accounts, but they can also be a drain on your assets if you’re not careful. Here’s how they work. A financial advisor can help… read more…
- How to Use a HELOC to Pay Off Your Mortgage
A homeowner with enough home equity may be able to use a home equity line of credit to pay off an existing mortgage. That can reduce monthly payments as well as reducing the total interest cost of the loan. This strategy probably only works for homeowners who owe much less than their homes are worth,… read more…
- Should You Refinance a Reverse Mortgage?
When you need an additional stream of income for retirement, a reverse mortgage is one option you might consider. A reverse mortgage allows you to tap into home equity, without having to make any monthly loan payments. It’s possible that… read more…
- What Is a Closing Disclosure?
Whenever you’re buying a home with a loan, understanding the terms of that loan can give you peace of mind and make the closing process a lot smoother. When you receive your Closing Disclosure from your lender, knowing how to review it can help you approach the closing day with assurance. A financial advisor can help… read more…
- What Is a Junior Mortgage?
A junior or second mortgage is a loan secured by a property that already has another mortgage on it. If a borrower defaults, the holder of a junior mortgage can foreclose, but only gets paid after the first mortgage is fully paid off. Proceeds from a junior mortgage may be used for down payments, renovations… read more…
- Mortgage Servicing Rights (MSR)
Mortgage servicing rights (MSR) allow a third party to perform the day-to-day mortgage servicing duties in exchange for a flat fee, paid by the loan originator. This can and often does happen while borrowers are in the process of repaying… read more…
- How Does a Mortgage Transfer Work?
A mortgage can be transferred from one lender to another, from one servicing company to another and from one borrower to another. It is even possible for a borrower to transfer an existing mortgage from one property to another. Any… read more…
- What Are Mortgage Refinance Points?
Mortgage points are fees you pay to help reduce the cost of buying a home. When you agree to pay points your lender can reduce your mortgage interest rate, which can save you money and potentially lower your monthly payment. If you already have a mortgage and plan to refinance, you may be offered the… read more…
- What Is a Loss Mitigation Mortgage?
Defaulting on mortgage payments could prompt your lender to initiate a foreclosure proceeding against you. If you’re unable to get caught up on payments, that could result in the loss of the home. Before things get that far, however, your… read more…
- Understanding How Conventional Loans Work
When shopping for a mortgage, there are many types of loans. A conventional loan is the most common option for homebuyers. Understanding how conventional loans work can help you make a smart home buying decision. Here’s what you need to know. If you want to buy a home, a financial advisor could help you create a… read more…
- What Are Chattel Loans?
When you buy a house, the mortgage for that property is based on the combined value of the land and the building on that land. But not all buildings can be valued with the underlying land. Mobile and manufactured homes… read more…
- What Is a Mortgage Constant?
A mortgage constant, also referred to as the mortgage capitalization rate, is a percentage of the total loan paid each year. If you are in the market for a new home, this percentage can be useful for various reasons. For instance, it can help you better understand how much of your loan you are repaying… read more…