- USDA Home Loan Requirements
If you’ve only compared mortgage rates published by banks and private lenders, you could be missing out on loans backed by the federal government. For example, there are mortgages that are issued and guaranteed by the Department of Agriculture. USDA… read more…
- What’s the Ideal Debt-to-Income Ratio for Mortgages?
Mortgage lenders use the debt-to-income ratio to evaluate the creditworthiness of borrowers. It represents the percentage of your monthly gross income that goes to monthly debt payments, including your mortgage, student loans, car payments and minimum credit card payments. The debt-to-income ratio… read more…
- What Is a Good Loan-to-Value (LTV) Ratio?
Basically, your loan-to-value (LTV) ratio is the flip side of your down payment, assuming that the purchase price equals the appraised value of the home. So if you are putting down 20%, your LTV is 80%. If there is a difference between the appraised value and the price you agreed to pay, the lender will… read more…
- Can You Use a Reverse Mortgage to Buy a New Home?
Reverse mortgages are popular among seniors. Through the Home Equity Conversion Mortgage (HECM) Program, retirees can turn their home equity into a monthly source of income without moving out of their houses. And with their extra cash, seniors can remodel their homes and pay for their living expenses. If you’re interested in buying a new… read more…
- How to Get Rid of Mortgage Insurance
Putting 20% down on a house may not be feasible for everyone. That’s why many homebuyers get stuck paying private mortgage insurance (PMI). Having to pay mortgage insurance can make owning a home more expensive. But you may not be responsible for… read more…
- Are Property Taxes Included in Mortgage Payments?
Paying property taxes is inevitable for homeowners. The amount each homeowner pays per year varies depending on local tax rates and a property’s assessed value (or a yearly estimate of a property’s market value).If you’re unsure of how and when… read more…
- Can You Get a Mortgage If You’re Unemployed?
Going from renting to buying is a high priority for many Americans. We’ve all been taught that homeownership is a key piece of the American dream. But if you’re between jobs, is homeownership out of reach? Let’s take a closer… read more…
- How to Make Extra Mortgage Payments
By consistently paying your mortgage bill on time, you’re showing your lender that you’re a responsible borrower. That may be obvious, but what’s often overlooked is the art of making extra mortgage payments. Paying more than you’re required to can… read more…
- What Is Landlord Insurance?
Say you own an investment property that you rent out to tenants. You probably want some form of insurance coverage for your property. Landlord insurance rolls multiple forms of coverage into one policy. It covers things like property damage, rent… read more…
- What Is a Land Loan, and How Do You Get One?
A land loan is an option for prospective homeowners who want to buy a piece of land and then build their own home there. Land loans aren’t as common as mortgages, so you may have to shop around a bit to… read more…
- All About Lender-Paid Mortgage Insurance
Don’t have enough cash for a down payment? If you can’t put at least 20% down on a house, you might have to pay for private mortgage insurance. Luckily, there are ways to get around that. One solution is to find out whether you qualify for lender-paid mortgage insurance. Depending on your arrangement, lender-paid mortgage… read more…
- 6 Mistakes to Avoid When Paying Off Your Mortgage Early
If you can afford to pay off your mortgage ahead of schedule, you’ll save some money on your loan’s interest. In fact, getting rid of your home loan just one or two years early could potentially save you hundreds or… read more…
- 4 Questions to Ask Before Getting an Adjustable Rate Mortgage
Before you can apply for a home loan, you’ll need to choose a mortgage product. Fixed-rate mortgage loans are popular among first-time homebuyers. But to some people, an adjustable rate mortgage (ARM) might seem more attractive. If you’re thinking about… read more…
- 3 Reasons to Avoid Changing Mortgage Lenders
Working with a mortgage lender isn’t always easy. Some of their decisions might even annoy you. For example, if your lender keeps pushing back your closing date or changing your loan terms, you may be wondering whether it’s okay to… read more…
- When’s a Good Time to Close on a Mortgage?
Closing is the final step in the home-buying process, and once you’ve signed your name on all of the required documents, your dream property will finally be yours. If you’ve been searching for a home for months, you may be… read more…
- How Does Your Mortgage Grace Period Work?
Making on-time mortgage payments is a must if you want to stay on your lender’s good side. But many first-time buyers don’t realize that you have a certain amount of wiggle room in which to pay. Mortgage contracts often come… read more…
- 5 Factors Mortgage Lenders Will Likely Consider
Things have tightened up in the housing market since the housing crisis and lenders are looking at mortgage applications more closely. Lenders consider many factors before deciding whether to approve applicants. Once you know what they’re looking for, you can boost your… read more…
- Should You Escrow Property Taxes and Insurance?
Escrow accounts help homeowners set money aside each month to cover insurance premiums and property taxes. When the bills for these come in each year, the mortgage lender uses money in the escrow account to cover the payments. So you… read more…
- Are You Eligible for a Principal Reduction Modification?
If you’ve been struggling to pay a mortgage loan backed by Fannie Mae or Freddie Mac, relief may soon be on the way. The Federal Housing Finance Agency (FHFA) recently announced that it would roll out its Principal Reduction Modification… read more…
- 3 Ways to Avoid Getting Ripped Off By Mortgage Brokers
Enlisting the help of a mortgage broker can make the home buying process run more smoothly. Brokers connect buyers with lenders so they can secure the most favorable mortgage loan terms possible. While they have a financial incentive to help… read more…
- How Mortgage Amortization Works
If you’re a homeowner and you’ve begun the process of paying off your mortgage, you’re dealing with something called mortgage amortization. Amortization is the act of eliminating debt by making regular payments over time according to a set schedule. Having… read more…
- What to Know About Getting a Second Mortgage
Homeowners who have enough equity in their homes may be able to take on second mortgages. Getting a second mortgage can be beneficial to someone who might need to use the money to pay off outstanding debts or remodel their home. At the same time, it can also be a risky move. Before you start… read more…
- 10 Things to Avoid Before Applying for a Mortgage
As a homebuyer, you don’t want anything to jeopardize your chances of closing on the home you’ve selected. Many folks can’t buy homes without applying for a mortgage, and if you need one, it’s important to prepare so you’re a… read more…
- What Does a Real Estate Attorney Do?
In certain states, you can’t buy or sell a house unless a real estate attorney is present. So unless you live in a place like Georgia, Vermont, Kentucky or Maine, for example, you might be wondering whether you need to… read more…
- All About the Affordable Loan Solution Mortgage
Industry standards say that homebuyers should expect to make at least a 20% down payment. In reality, however, not everyone can afford to do that. Down payment assistance plans and mortgages with zero or low down payments can relieve some… read more…