- 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…
- 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…
- 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…
- Understanding the Assessed Value of a Home
Not to be confused with the appraised value of your home, the assessed value is what the government uses to calculate property taxes. Meant to be utilized regardless of market conditions, the assessed value is generally 20% to 40% lower… read more…
- A Guide to Open-End Mortgages
An open-end mortgage allows you to borrow additional money on the same loan at a later date. An open-end mortgage blends some qualities of a traditional mortgage with some features of a home equity line of credit, or HELOC. It… read more…
- Home Equity Loans: How They Work and How to Get One
A home equity loan is a type of secured loan where a borrower uses the equity of their home as collateral for the bank. The amount available is generally determined by the value of the property as determined by an… read more…
- What Is a Subordinated Loan?
A subordinated loan is debt that’s only paid off after all primary loans are paid off, if there’s any money left. It’s also known as subordinated debt, junior debt or a junior security, while primary loans are also known as… read more…
- How Mortgage Insurance Premiums (MIPs) Work
Mortgage insurance premiums (MIPs) pay for insurance to protect mortgage lenders against the risk that borrowers won’t pay them back. MIPs add to a borrower’s costs, but they allow you buy a house with a lower down payment than the… read more…
- What Is Mortgage Fraud?
Mortgage fraud occurs when a potential homebuyer or mortgage lender provides false information or omits certain details in order to complete a mortgage transaction. As a homebuyer, you may encounter predatory lenders who want to scam you. And if you’re… read more…
- A Guide to Commercial Real Estate Loans
A commercial real estate loan, also known as a business mortgage, is a loan for property used for commercial purposes. The collateral for the mortgage can partially be the building itself, whether that’s an office, retail space, apartment building, warehouse or other development.… read more…