- Fixed vs. Adjustable Rate Mortgages
Buying a home is one of the most important purchases a person makes in their lifetime. And therefore, it’s paramount that the mortgage one attains is the right type of loan for their financial needs. When deciding on a mortgage… read more…
- What Is a Co-Op and How Does It Work?
A co-op, or cooperative, is a housing arrangement in which residents of a building with multiple apartment-style units own the building jointly. Residents don’t actually own the specific individual unit where each resides but, instead, they own shares in a… read more…
- Despite High Rates, Advisors Say Now May Be a Great Time to Buy a Home
The conventional wisdom suggests that now is a terrible time to buy a home. In September, the average rate for new 30-year mortgages hit 6.29% according to the St. Louis Federal Reserve, almost triple their 2021 low of 2.65%. At… read more…
- What Are Closing Costs and How Much Are They?
Closing costs accompany mortgage loans and cover the last-minute expenses and fees to close a loan. These costs can be significant – totaling as much as 2% to 5% of the loan amount. Here’s a break down of how these costs… read more…
- Pros and Cons of Adjustable-Rate Mortgages
With inflation continuing to affect interest rates, homeowners looking for financial relief may turn to their mortgages to help their overall budget. Adjustable-rate mortgages can bring interest rates down to affordable levels for borrowers, making homeownership possible during financially challenging… read more…
- What Is a 7/1 Adjustable Rate Mortgage (ARM)?
Fixed-rate mortgages finance the majority of homes across the country, allowing homeowners to make unchanging monthly payments until they repay the loan. However, fixed-rate mortgages can have expensive interest rates. While adjustable-rate mortgages (ARM) can have volatile interest rates, hybrid… read more…
- What Is a 5/1 Adjustable Rate Mortgage (ARM)?
Loan products such as 5/1 adjustable rate mortgages give borrowers reduced interest rates for five years, giving homeowners some much-needed breathing room. This can help, especially as mortgage rates have been on the rise. During the loan’s first five years,… read more…
- What Is Earnest Money?
Today’s red-hot housing market is challenging for many buyers to navigate. Rising interest rates, bidding wars and low housing supply can make purchasing a home more strenuous than usual. However, one way that buyers can stand out is with a sizable… read more…
- What Is a Kick-Out Clause and How Does It Work?
A kick-out clause is a clause written in real estate contracts, usually in the context of home sales. It applies when someone has made a contingent offer to buy the house. The kick-out clause says that the seller can continue… read more…
- Where Is the Housing Market Headed?
The housing market can be something of a rollercoaster for buyers who are hoping to find great deals while battling rising interest rates and steep competition for properties. Home prices have been on a steady incline, with prices up 10.9%… read more…
- How Do You Pay Back a Reverse Mortgage?
A reverse mortgage is typically paid back either when you sell the home or when the homeowner passes away. They are a relatively common way for older homeowners to supplement their retirement accounts, but they can also be a drain on your assets if you’re not careful. Here’s how they work. A financial advisor can help… read more…
- How to Use a HELOC to Pay Off Your Mortgage
A homeowner with enough home equity may be able to use a home equity line of credit to pay off an existing mortgage. That can reduce monthly payments as well as reducing the total interest cost of the loan. This strategy probably only works for homeowners who owe much less than their homes are worth,… read more…
- How Does Equity Sharing Work?
Equity sharing allows homebuyers with low or no down payment to buy a home. Investors also get tax benefits and a low-risk investment. These qualities make equity sharing an attractive alternative to other home buying options like taking out a… read more…
- How to Choose a Realtor: 7 Things to Consider
Homebuyers face a dizzying array of hoops to jump through, with mortgage pre-approval and hiring a home inspector as just a few examples. However, throughout your search for the home of your dreams, one party will consistently be at your… read more…
- Should You Refinance a Reverse Mortgage?
When you need an additional stream of income for retirement, a reverse mortgage is one option you might consider. A reverse mortgage allows you to tap into home equity, without having to make any monthly loan payments. It’s possible that… read more…
- Final Walkthrough Before Closing Checklist
With preapproval, attending showings, committing to a down payment and engaging in bidding wars, buying a home can be arduous. If you have made it to the final walkthrough, congratulations! The final walkthrough is a crucial step where you check the… read more…
- How Much Do Property Managers Charge?
Real estate property managers typically charge around 8% to 12% of monthly rent for basic tasks, including collecting rent, communicating with tenants and arranging for repairs. They may also collect an array of fees for various additional services, ranging from placing new tenants to overseeing evictions. Property owners can generally select and pay for only… read more…
- Tips for Winning a House Bidding War
Being a responsible, well-prepared prospective homebuyer is no longer enough to qualify and purchase a home, especially in competitive markets. In the current seller’s market, the buyers need to be swift and savvy to purchase a house. The current low… read more…
- What Is a Closing Disclosure?
Whenever you’re buying a home with a loan, understanding the terms of that loan can give you peace of mind and make the closing process a lot smoother. When you receive your Closing Disclosure from your lender, knowing how to review it can help you approach the closing day with assurance. A financial advisor can help… read more…
- How to Buy a House as an Unmarried Couple
Buying a home is a big step financially and for some people, it’s the largest investment they’ll ever make. If you’re an unmarried couple buying a home together, you’ll still need to go through the usual mortgage process. But there are some unique considerations to keep in mind that may affect your decision to buy. If… read more…
- Definition of a Seller’s Market
If you’re shopping around for a home, you may be wondering whether this is a seller’s market, which favors homeowners over homebuyers. Let’s break down the characteristics of a seller’s market and what you need to look out for when… read more…
- What Is a Junior Mortgage?
A junior or second mortgage is a loan secured by a property that already has another mortgage on it. If a borrower defaults, the holder of a junior mortgage can foreclose, but only gets paid after the first mortgage is fully paid off. Proceeds from a junior mortgage may be used for down payments, renovations… read more…
- Determining the Adjusted Basis of a Sold Home
Selling a home can put a large sum of money in your pocket but there’s one important thing to consider: Taxes. Whether the sale of a home is taxable or not can depend on the amount of the gain realized and the property’s adjusted basis. The last thing you want is to get hit with… read more…
- How Long Does It Take to Close on a House?
As a prospective homebuyer, you may be well acquainted with the pain of making it to closing day. Few things are more frustrating than finding your dream home only to have your loan application gummed up in underwriting because of… read more…
- Mortgage Servicing Rights (MSR)
Mortgage servicing rights (MSR) allow a third party to perform the day-to-day mortgage servicing duties in exchange for a flat fee, paid by the loan originator. This can and often does happen while borrowers are in the process of repaying… read more…