- What Is the Escalation Clause in Real Estate?
In a real estate contract initiated by a potential buyer of a house, an escalation clause is either an addendum to the contract or built into the original contract. It is a clause that says that potential Buyer A will pay a certain amount for a house, but if another buyer, Buyer B, comes along… read more…
- How to Choose a Mortgage Lender
There is no shortage of lending options these days. But with so many choices, shopping for the right lender can feel overwhelming. After all, the best mortgage loan depends on more than a low interest rate. The first step to choosing a mortgage lender is research. Comparing your options should help you find the service… read more…
- Mortgage Broker vs. Loan Officer: Which Is better?
Getting a home loan is a big financial decision. This is why it’s important to work with someone who can get the lowest rate and best terms on your mortgage. When looking for a mortgage, you’ll need to choose between… read more…
- Why You Might Not Want to Pay Off a Mortgage
If you own a home, it’s often thought that you should pay off your mortgage as quickly as possible. This is often advisable. A mortgage is frequently the largest amount of debt most people will ever owe, and even a… read more…
- Second Mortgage vs. Home Equity Loan: Which Is Better?
Owning a home can yield valuable benefits, including the opportunity to accumulate equity in the property. Equity is the difference between what you owe on the home and its fair market value. There are different ways you can tap into… read more…
- Guide to Getting a Mortgage for a Rental Property
Buying a rental property is one way to create another stream of income. Likely, you must finance the property with a mortgage. But, it’s usually harder to qualify for a mortgage for a rental property than when buying a home.… read more…
- How to Avoid PMI
Private mortgage insurance (PMI) protects lenders against risk of default on loans to homebuyers. Reducing risk to lenders can mean lower interest rates and better access to credit for borrowers, but it can also add significantly to the cost of a mortgage. Here’s how to borrow money to buy a home while avoiding PMI or… read more…
- What Is a Satisfaction of Mortgage?
Paying off your mortgage is a huge milestone and accomplishment for any homeowner. You may want to jump right into celebrating, but first you need to make sure all the proper documentation is in order. A satisfaction of mortgage is a crucial document in the mortgage repayment process. It shows that your home outright belongs to… read more…
- When Is Your First Mortgage Payment Due?
Mortgage payments are typically due on the first day of the month. However, if you buy a new home, when is your first mortgage payment due after you close on your loan? It’s not an exact science, but knowing when… read more…
- Home Equity Loan vs. Mortgage: Key Differences
Mortgages and home equity loans both allow borrowers to use their homes as collateral. However, they have some significant differences. For one, to get a home equity loan a borrower already must own a home and, furthermore, must have sufficient equity in the home. A traditional mortgage, also known as a purchase mortgage, is used… read more…
- How and When to Make a Mortgage Recast
When homeowners seek to reduce their monthly mortgage payments, they generally focus on refinancing their homes. The problem with this approach is that it resets the clock on your mortgage. This can stretch out your payments over a longer period of time. While you save monthly, it can cost you more in the long run.… read more…
- How Much Does Mortgage Insurance Cost?
Not every potential homebuyer can afford the traditional 20% down payment. In fact, many Americans struggle to pull together enough finances for a substantial down payment on a mortgage. However, that doesn’t mean your dream home is out of reach. When that happens, potential buyers can still purchase their property with the help of mortgage… read more…
- Average Mortgage Balance By Age
Homeowners may wonder if they’re carrying too large a mortgage and, if so, how to reduce it. Mortgage sizes tend to vary by generation, so one way to assess whether your mortgage may be oversized given your age is by finding out what the average mortgage for your generation is. Then, if your mortgage is… read more…
- What Is a Blanket Mortgage?
Most homeowners use traditional mortgages when buying their primary or vacation home. However, when you own multiple properties, it makes sense to explore other options that may be better suited to your situation. One of the strategies that real estate investors use is something called a blanket mortgage. In this article, we’ll define what a… read more…
- How to Pay Off a Mortgage in Five Years
While homeownership is called “the American Dream,” owning a home also means taking out a mortgage for most people. And you don’t truly own your home until the mortgage is paid off, so many families want to pay their mortgage… read more…
- What Is a Conditional Approval Mortgage?
The conditional approval of a mortgage loan does not guarantee final approval, but it’s a stronger signal that the applicant will be approved than prequalification. After you apply for a mortgage, your application goes through several steps before it is approved or denied. When you reach the step of conditional approval mortgage in the underwriting… read more…
- Mortgage Origination Fees: What You Need to Know
For most, your home is not only your greatest investment but your most expensive one. And that expense includes not just the purchase price but a list of other costs that some buyers gloss over when they sign on the… read more…
- What Is a No Closing Cost Mortgage?
A no closing mortgage, sometimes called a zero closing cost mortgage, is one in which your lender provides the money to pay for the closing costs on your house. In exchange, you typically pay a higher interest rate or the… read more…
- Bridge Loan vs. HELOC: Which Do You Need?
Bridge loans and home equity lines of credit (HELOCs) are short-term financing tools commonly used in real estate. While bridge loans offer temporary funding to cover the gap between buying a new property and selling an existing one, HELOCs allow borrowers to tap into their home’s equity as a revolving line of credit. Both options… read more…
- Warranty Deed vs. Quitclaim Deed
A warranty deed, as its name suggests, comes with warranties. The person or persons transferring the property, whether it’s being bought as a residence or as an investment guarantee they own it and have the authority to transfer any rights to it that are enclosed in the deed. A quitclaim deed is both more and less… read more…
- What Are the FHA Loan Requirements?
Federal Housing Administration (FHA) loans are a government-insurance mortgage product offered to qualified borrowers across the country. These loans, which are offered by private lenders and secured by the FHA, may make homeownership more accessible and affordable. This is especially… read more…
- FHA Loans: A Guide for Home Buyers
There are many different types of mortgage loans to consider when buying a home. One option is an FHA loan; for those who qualify, these government-insured mortgages can offer competitive terms and rates that make homeownership possible for more buyers. Let’s… read more…
- What Does ARV Mean in Real Estate?
Real estate investors often consider the after-repair value, or ARV, of a piece of real estate when deciding whether a deal is worth pursuing. The ARV is an estimate of what the property will be worth after all the needed… read more…
- Coronavirus Relief for Mortgage Payments
In response to the financial meltdown sparked by the coronavirus pandemic, Congress passed a historic $2 trillion stimulus package and President Trump signed it into law on March 27, 2020. The Coronavirus Aid, Relief, and Economic Security (CARES) Act included several provisions protecting homeowners and renters. That meant that if you lost your job due to… read more…
- What Are Rent-to-Own Homes?
Owning a home is an important goal for many people. But with mortgage, downpayment and credit requirements, many can’t yet afford to buy as soon as they’d like. For some in this situation, rent-to-own homes are an attractive option. It… read more…