- Should I Get a Loan Through a Mortgage Company or Bank?
Before buying a home, you will need to choose who you’re going to work with through the home buying process. This starts with your real estate agent, though your mortgage loan officer can be almost as important. They can advise you on refinancing or home equity loans if you already own a home. A financial advisor can… read more…
- Underwater Mortgage Definition & What Your Options Are
When you owe more money on your mortgage than your home is worth, your mortgage is considered to be underwater. No homeowner wants to be underwater because it can be difficult, if not impossible, to earn a profit when trying to sell an underwater home. In fact, if you need to sell when you have… read more…
- What is a Good Offer for a Home – 3 Things to Consider
So you’ve found your dream home. You’re ready to make an offer. But what is a fair price? Will there be competing offers? You don’t want to lose this house, yet you also don’t want to pay too much on… read more…
- What Is Single-Payment Mortgage Insurance?
If you buy a house with less than a 20% down payment, and finance it with a conventional loan, you are going to have to pay private mortgage insurance. PMI protects the lender against the possibility of a default. It does not protect you, the buyer, but it does give you the benefit of buying a… read more…
- Relying on an FHA Loan? Sellers May Not Be Thrilled
Mortgage loans insured by the Federal Housing Administration, better known as FHA loans, have become increasingly popular tools for home buyers. Sellers are not always as thrilled with the product because the borrowers of these loans can often bring risk to getting the transaction closed. Determining if it is a good financial tool for you might… read more…
- The Tax Advantage of Making an Extra Mortgage Payment
If you have a mortgage loan, you are well aware of the tax deduction you get each year for the interest. Once per year, all that interest you pay to your bank gives you a benefit as well. By strategizing… read more…
- Should I Get Prequalified or Preapproved for a Mortgage?
Despite sounding identical, a prequalified mortgage is not the same as a preapproved mortgage. Prequalification is generally a quick, free process where a bank takes your financial information and lets you know generally what your loan will look like. Preapproval… read more…
- Low Down Payment Mortgage Options
The days are long gone when you could buy a house without spending any money out of pocket. Lenders and regulators have determined that potential home buyers need to demonstrate some savings ability prior to taking on a mortgage for a home. Even the unexpected and regular maintenance that arises from owning a home can… read more…
- What Is an Assumable Mortgage?
You could be wondering, what is an assumable mortgage loan? Essentially, it lets you take over an owner’s loan on a property. All the terms of the original loan, including the rate, remain the same. So if you’re buying a… read more…
- Understanding the Home Appraisal Process
The home appraisal plays a key role in the home buying process, both for a purchase and for a refinance. That’s why it’s important to understand the ins and outs of the home appraisal process. In a purchase transaction, the… read more…
- The SmartAsset Guide to Mortgage Rate Sheets
Mortgage rate sheets can look intimidating and ominous, not only to consumers, but to mortgage professionals as well. In today’s market, mortgage rates not only change daily, but are based on many factors specific to the individual borrower and loan. Knowing how to read a mortgage rate sheet gives you a valuable tool as you… read more…
- 5 Types of Property Ownership
Purchasing a home or other large asset can be the thrill of a lifetime. Sometimes in the flurry of activity, there are decisions made that could come back to haunt you. No, this isn’t buyer’s remorse. Well, not the kind… read more…
- What Is a Mortgage Recording Tax?
Whenever you obtain a mortgage, some state and local governments levy a mortgage recording tax to document the loan transaction. This fee is separate from mortgage interest and other annual property taxes. Since it is state-imposed, the mortgage recording tax must… read more…
- What are Deed Transfer Taxes?
Depending on the state in which you are buying or selling a home, you may be subject to a deed transfer tax. This fee is tacked onto the deed sale or transfer for a “real” property, defined as any structure attached directly to land. This sales tax not only applies to the transfer of ownership,… read more…
- VA Loans – Part 1: An Introduction to the VA Loan
The VA Loan is not your typical housing loan. It’s a loan that’s guaranteed by the U.S. Department of Veterans Affairs (VA). Active-duty service members, veterans, Reserve members and some surviving spouses of service members are all potentially eligible for a VA loan, which comes with perks like zero down payment requirement. Let’s take a… read more…
- What Are the Different Types of Homes?
Regardless of where you want to move, there are tons of options for the types of homes you can buy. Your choices stretch from basic single-family and multi-family homes to condos and townhouses. Some jumping-off points for making a final… read more…
- FHA Loans – Part 1: What is an FHA Loan?
An FHA loan is a loan administered by the Federal Housing Administration (FHA) to those that may not be able to get financing elsewhere. The loan is designed to reduce the risk of lending to individuals with less than stellar… read more…
- Mortgages – Part 5: Pre-Closing and the Mortgage Closing Process
Before moving on to the final step, the closing process, it helps to go through a pre-closing checklist. Going through a detailed checklist makes sure everything is in order for the actual closing. Think of it as a dress rehearsal… read more…
- Mortgages – Part 4: Mortgage Underwriting & Mortgage Insurance
In the five circles of the mortgage process, underwriting is where you (the borrower) come face to face with the bank’s gatekeeper: the underwriter. The underwriter is the last major hurdle standing between you and closing the loan on your… read more…
- Mortgage Dictionary: Learn the Lingo of Loan-speak
Welcome to the SmartAsset Mortgage Dictionary. Below you will find a glossary of popular terms explained in plain English. No need to thank us, this is just what we do. APR Annual percentage rate: This number allows you to make comparisons between loans offered by different lenders by giving you the total cost of the… read more…
- How to Decide Between Fixed Rate and Variable Rate Mortgages
Once you have decided that you would like to buy a home, the first thing you need to do is figure out how to ‘finance’ the purchase. This means deciding how much of your savings you are going to use as a down payment, how much money you want to borrow (the mortgage) and choosing… read more…
- Should you buy points on your mortgage?
You probably already know that the interest rate you pay is among the most important factors contributing to the cost of your mortgage. The lower the interest rate you can get, the better for you and your finances. You may also know that points have something to do with the interest rate you end up getting with… read more…
- How to Pay Off Your Mortgage Early
When you have a mortgage, a hefty portion of each monthly loan payment goes toward interest. You might be tempted to make minimum payments toward your home loan so that you can use the rest of the money in your bank account to cover other costs. But paying off your mortgage early can save you… read more…
- Having Financial Trouble? Mortgage Loan Modification vs. the Short Sale
Are you struggling to pay your mortgage bills each month? Maybe you’ve lost a job and your income has plummeted. Or maybe you’re going through a costly divorce, or receiving treatment for an injury or illness. There are many reasons… read more…