Before the housing crisis, it wasn’t uncommon for home buyers to finance 100% of the mortgage or for lenders to offer low down payment options. Today, lenders are wary of borrowers who do not possess enough money for a down payment. With the increasing rise of foreclosures, the demand for cash upfront increases with every Read more…
Private mortgage insurance (PMI) is charged to borrowers when their down payment is less than 20% of the home price. Generally if a potential home buyer is borrowing a mortgage for anything more than 80% of the purchase price, he/she will be required by a lender to pay PMI. The payments are requested because lenders Read more…
Mortgage debt ratios tell lenders how much debt you have in relation to your household income. Usually called debt-to-income ratios, these numbers are used to qualify or reject a mortgage application. A high debt-to-income ratio signifies a greater chance of missed payments and a stronger possibility of foreclosure. There are two types of debt ratios: Read more…
Not sure what mortgage points are? Confounded by the concept of buying mortgage points? The following questions and answers will help you figure out what’s what in the world of mortgage points. What are Mortgage Points? Mortgage points are fees. Different lenders charge different fees, and you’ll find the amount charged can vary tremendously between Read more…
Are you debating whether or not to buy mortgage points? Are you confused as to how mortgage points can help you save money in the long run? Are you unsure if the money you’d have to put down to buy points will pay off over the life of the loan? The following pros and cons Read more…
Purchase offer contingencies are a set of conditions listed in the contract that protect the buyer and the seller. If the contingencies are not met, the sale can be postponed or possibly canceled. The contingencies often cover a wide variety of areas including home inspection, insurance and financing. Contingencies can cover anything the buyer or Read more…
Lease to own homes are common among sellers who have not yet sold their homes but are anxiously seeking a financial solution. Desperate sellers often agree to offer a “lease to own” scenario when they close on a new house but have not yet sold their current home. These homes become the ideal scenario for Read more…
Since buying a home is one of the most important financial decisions of your life, it should be made carefully and with as much information as possible. During the home hunting process, you will undoubtedly come across many properties. It’s easy to get confused and you may end up buying a home that’s not actually your Read more…
Facing something monumental like buying a home can seem overwhelming. But as with any major undertaking, having a plan or at least a checklist to help keep you organized is one of simplest and smartest things you can do. Let’s start with choosing your new home. Keep in mind that a little compromising here and Read more…
Once you’ve found the home you want, getting through the loan approval process is the next big hurdle. But understanding it, step by step, can alleviate some of the anxiety. It usually starts with a face-to-face meeting with a mortgage lender to talk about the loan process. This is a time to get your questions Read more…
Interest rates move in curves: up, down, up and down again. When should you refinance? Every time the rate hits Read more...
One of the biggest purchases you will probably make it your life is your home. Your home may also be Read more...
The home loan business has experienced significant changes since the real estate crash of 2008. Most notably it has become Read more...
1. What is HUD? HUD stands for the United States Department of Housing and Urban Development. It’s a government agency Read more...