- 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…
- What Is a Quitclaim Deed and How Does It Work?
A quitclaim deed sometimes referred to as a non-warranty deed is a document used to transfer interest in a property. Common terms utilized alongside quitclaim deeds are “grantor” and “grantee.” In this context, the grantor is the one transferring the ownership… read more…
- How Mortgage Points Work and When to Pay Them
Mortgage points are fees that you pay your mortgage lender upfront in order to reduce the interest rate on your loan and, in turn, your monthly payments. A single mortgage point equals 1% of your mortgage amount. So if you… read more…
- What Is a Jumbo Loan?
A jumbo loan is a type of mortgage designed to finance high-value homes that require loans above the standard conforming loan limits. These limits are regulated by the Federal Housing Finance Agency (FHFA). They vary by location, but for most of the U.S., the 2025 limit currently stands at $806,500 for one-unit homes. Jumbo loans are not… read more…
- How Do Bond Loans Work?
Low- and middle-income families who want to buy homes may be able to get a bond loan. State and local authorities issue bond loans to subsidize the cost of becoming a homeowner for those who meet certain income requirements, either… read more…
- What Is Private Mortgage Insurance (PMI)?
Scrounging up the money for a standard 20% down payment on a home can be a challenge for some. If you fall short of this prespecified amount, you will likely encounter private mortgage insurance, or PMI. PMI is there to… read more…
- Choosing a Mortgage Term: 15-Year vs. 30-Year
Choosing a mortgage is an integral part of the home buying process. Opting for a 15-year mortgage term instead of the traditional 30-year term seems like a smart move, right? Not necessarily. Going with a shorter mortgage term does have… read more…
- How to Refinance a Mortgage
When you refinance a mortgage, you take out a new loan to pay off the old one. This time, you aim for a lower interest rate and better terms. However, refinancing a mortgage can be a risky process. It’s important… read more…
- Your Mortgage Preapproval Checklist
To get preapproved for a mortgage, you’ll need a few documents detailing your income, assets and debt obligations. This helps banks and other mortgagees determine exactly how much they’re willing to lend you. Getting mortgage preapproval also helps you understand… read more…
- What Is a Subprime Mortgage, and Who Should Get One?
A subprime mortgage is a type of home loan issued to borrowers with low credit scores (often below 640 or 600, depending on the lender). Because the borrower is a higher credit risk, a subprime mortgage comes with a higher… read more…
- What You Should Know About Fannie Mae Loans
When you’re buying a home, there are multiple ways that you can go about paying for it. You can secure a mortgage by finding a bank or credit union in your area that offers home loans. There are also plenty… read more…
- What Is a Mortgage and How Does It Work?
Buying a home can be both an amazing and stressful process at the same time. But tackling the huge expense of a home in one fell swoop is often difficult for an individual or family to handle. That’s where mortgages… read more…
- How to Choose a Mortgage Broker
A mortgage broker is a third party who helps potential homebuyers get the best possible rate when securing a loan to buy a home. Instead of going to each lender for a rate quote yourself, a mortgage broker does the… read more…
- Pros and Cons of a Balloon Mortgage
Your balloon mortgage loan might have seemed like a good idea when you first applied for it. Maybe it meant that your monthly mortgage payments have been lower so they fit into your budget. But now your mortgage balloon payment is… read more…
- Mortgagee: Is It the Bank or the Homebuyer?
Unlike an employee, escapee or trainee, a mortgagee is not a person. Instead, a mortgagee is the bank or credit union that loans money for the purchase of a home or property and holds the property title until the loan… read more…
- What’s the Difference Between a Mortgage APR and an Interest Rate?
A mortgage interest rate is the cost of borrowing money. It’s given as a percentage. A mortgage annual percentage rate (APR) is the interest rate plus other costs associated with a mortgage, including discount points and lender fees. This is why an APR is typically higher than the simple interest rate. It is important to have… read more…
- What’s the Difference Between a HELOC and a Home Equity Loan?
With homeownership comes home equity. Both home equity loans and home equity lines of credit (HELOCs) use the equity you’ve built up to help you pay off big expenses. You can use these loans to tackle credit card debt, tuition… read more…
- What Is a Mortgage Prepayment Penalty?
When you take on a mortgage loan, you may be so laser-focused on reducing your debt load that you get overeager and make payments ahead of schedule. But your exuberance and diligence can actually have a negative effect. If you… read more…
- What Are Gift Letters for a Mortgage?
When it comes to owning a home, shouldering the burden of a hefty down payment and paying off your mortgage over many years can be daunting. For that reason, it would be pretty hard to turn down a generous cash gift a few months prior to securing your mortgage. But how do you take this cash and… read more…