Paying off your mortgage can be one of the best financial moves you’ll ever make. For most people, a mortgage payment is the single largest, monthly expense they have. Some argue that paying off a mortgage early doesn’t make sense because you lose a good tax write-off. This isn’t a well conceived idea. An expense Read more…
When you buy a home, your monthly payment includes the amount going to pay off the mortgage and a small portion to cover your homeowner’s insurance and property taxes. The money to pay your insurance and taxes goes into what is called an escrow account. Escrow is a convenient way to make sure your taxes Read more…
A 3-2-1 mortgage buydown is an option for home buyers who have relatively low incomes but possess lump sums of cash. With a 3-2-1 buydown, buyers will experience lower initial payments for the first three years than with a traditional mortgage. The interest rate on a 3-2-1 buydown is reduced 3% below the note rate Read more…
Graduated payment mortgages (GPMs) offer initial low monthly payment options for home buyers who are in a temporary low income situation. The monthly payments of GPMs start at a lower amount than conventional mortgages and gradually increase over a period of five or ten years, at which time they peak and remain the same until Read more…
Interest is the price for borrowing money. It is identified as a percentage of the principal amount borrowed over a specified period of time. When it comes to loans and investments there are two types of interest: simple and compound. Simple Interest Simple interest is calculated on the original principal only and is often the Read more…
Financial fluctuations are common and ongoing but that monthly mortgage bill is steady. If you have managed to secure some extra cash or if your income has increased, you might be thinking about devoting more of your income towards your mortgage to save on the interest costs that make up a significant part of your Read more…
What Exactly is a Prepayment Penalty? A mortgage loan is a commercial financial product. When the lender extends the loan to you, certain calculations are conducted pertaining to the profits the lender expects to generate initially and over the length of the loan’s lifespan. The profit is in the form of interest the lender earns 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...