- Home Equity Loan Requirements
A home equity loan is a personal loan secured by the value of your residence. It’s often the easiest form of personal credit for individuals to get. While requirements will vary, most lenders will extend a loan to borrowers who… read more…
- How to Lower Your Mortgage Payment
A mortgage payment is often one of the largest monthly bills that a household pays each month. By reducing this payment, you can free up more money to invest for your future or pay off existing debt. While earning more… read more…
- What Happens to Your Mortgage When You Die?
If you die owing money on a mortgage, the mortgage remains in force. If you have a co-signer, the co-signer may still be obligated to pay back the loan. A spouse or other family member who inherits a house generally… read more…
- What Are the Closing Costs for a HELOC?
With home values on the rise, many homeowners are tempted to access their equity for low-cost borrowing. Instead of refinancing or selling your home, you can use a home equity line of credit (HELOC) to borrow money as you need… read more…
- Mortgage Broker vs. Direct Lender: Key Differences
As you shop for a mortgage, there are many different people and companies involved in the loan process. Two of these parties are the mortgage broker and the direct lender. When thinking about the process, don’t think of it as… read more…
- Can You Use a VA Loan to Buy a Second Home?
The VA loan program is designed to help veterans and active service members purchase homes with no down payments and despite less-than-ideal credit scores and existing debt loads. Federal laws states veterans must plan to live in the home as their primary residence. However, there are ways to meet this occupancy requirement that let eligible… read more…
- What Is the Mortgage Accelerator Program?
A mortgage accelerator program can help a homeowner pay off the mortgage sooner and potentially save thousands in interest. These programs can permit homeowners to use a home equity line of credit in a complex arrangement to make large extra payments on a mortgage annually. However, fees can be high and the programs require considerable… read more…
- Why Your Mortgage Can Go Up And Fluctuate
Your mortgage loan payment can go up and fluctuate. Whether your mortgage payment changes depend primarily on three factors. The factors are the type of mortgage loan you have, changes in your property taxes and changes in your homeowner’s insurance premium. There are also some miscellaneous issues that will change your mortgage payment. We look… read more…
- How Does a Construction to Permanent Loan Work?
If you’d rather build a home than buy one, and plan on borrowing to do so, your lender might steer you toward a construction loan. This would allow you to finance the building of the home; and once it’s complete, you’d take out a traditional mortgage for the property. A construction to permanent loan, on… read more…
- How a Mortgage Rate Lock Works
A mortgage rate lock allows you to “lock in” an interest rate on a mortgage, protecting you from potential interest rate spikes. While this can be a great tool to help you save money, it may not always work for… read more…
- A Guide to the Different Mortgage Types
Potential home buyers have a lot of research to do before they purchase a home. Part of that research involves finding the right type of loan to pay for your future residence with. There are multiple types of mortgages out there, and each one is unique. Where one might offer more competitive interest rates, others might… read more…
- Fannie Mae vs. Freddie Mac: Key Differences
Fannie Mae and Freddie Mac are government-sponsored enterprises that buy and sell home loans on the secondary mortgage markets. The two help make affordable financing available to home buyers by providing mortgage lenders with liquidity. Although they have different histories,… read more…
- What Is Ginnie Mae (GNMA)?
Ginnie Mae is a corporation owned by the U.S. government that guarantees timely payments on home loans that have been made under various federal housing programs and packaged into mortgage-backed securities. Ginnie Mae helps keep home loans available and affordable for lower- and moderate-income homebuyers by making securities backed by federal home loans attractive to… read more…
- Ginnie Mae vs. Fannie Mae: Key Differences
Ginnie Mae and Fannie Mae are both key players in the home mortgage business. The two organizations help make home loans available and affordable by increasing lenders’ access to funds through the secondary mortgage market. Beyond that, however, the two organizations have key differences, including the fact that Ginnie Mae is owned by the federal… read more…
- How Is a Home Equity Loan Calculated?
Taking out a home equity loan could provide you with ready cash to make home improvements, consolidate debt or cover a large expense. Before applying for a loan, it’s important to know how to calculate home equity to determine how… read more…
- How Do Physician Loan Mortgages Work?
Lenders ordinarily don’t welcome mortgage applications from recent graduates with lots of debt, limited income and little or no employment history. However, when the borrowers are newly fledged physicians, some lenders can offer special physician loan programs that will overlook debt, be flexible about earnings and work record and even skip requirements for a large… read more…
- What Happens When You Pay off Your Mortgage?
For many homeowners, one of the milestones on the path to financial independence is being able to pay off their mortgage. With typical mortgages lasting 30 years, it can take a long time to meet this goal. But what happens… read more…
- What Is a Wholesale Mortgage Lender?
Many homeowners buy their homes through mortgage brokers. These are retail-facing third parties who help pair potential borrowers with potential lenders in the mortgage market. Brokers don’t provide the financing for a mortgage themselves. Instead, they facilitate loans provided by what is known as wholesale mortgage lenders. Here’s how it works. A financial advisor can… read more…
- Mortgagor vs. Mortgagee: Key Differences
Buying a home is a complex endeavor, especially if it’s your first time. The best way to navigate the process is to understand all the jargon within the process. For example, the mortgagee is the lender, while the mortgagor is the… read more…
- Deed of Trust vs. Mortgage: Key Differences
When buying a home, it’s easy to get lost in the terminology. Understanding key terms and requirements can become confusing. For example, some states require a deed of trust while others require a mortgage. But, what’s the difference? While your… read more…
- What Is the Escalation Clause in Real Estate?
In a real estate contract initiated by a potential buyer of a house, an escalation clause is either an addendum to the contract or built into the original contract. It is a clause that says that potential Buyer A will pay a certain amount for a house, but if another buyer, Buyer B, comes along… read more…
- How Does Seller Financing Work?
Competition in the current housing market is stiff. Low supply and high demand are just two factors complicating the home search for many prospective buyers. Not only that, but qualifying for a traditional loan can be difficult. One option outside the… read more…
- Taking Out a HELOC on an Investment Property
Taking out a home equity line of credit or a HELOC on your investment property is one financing option you can use to pay for renovations of a property or purchase another. But, qualifying for one is usually the biggest… read more…
- How to Choose a Mortgage Lender
There is no shortage of lending options these days. But with so many choices, shopping for the right lender can feel overwhelming. After all, the best mortgage loan depends on more than a low interest rate. The first step to choosing a mortgage lender is research. Comparing your options should help you find the service… read more…
- Second Home vs. Investment Property: Key Differences
Buying a second home can be significantly easier and less costly to finance than buying an investment property. Investment properties can offer you tax deductions by claiming operating expenses and ownership. Second homes, on the other hand, can also generate… read more…