Lenders operate on risk. The lower their risk, the less they charge in interest and fees. And one way they analyze risk is by looking at your financial stability. Enter: seasoning requirements. Lenders include these time requirements to make sure that you don’t just qualify for a mortgage as a fluke this month, but rather … Read more
No matter how much they dislike debt, most people achieve home ownership with the help of a mortgage. But while you might need a loan to get your foot in the home ownership door, that doesn’t mean you’re stuck with it for the next 30 years. By taking small steps to pay off your mortgage … Read more
Applying for a mortgage? Keep your stress ball handy. Aside from collecting your income and asset documentation and pulling your credit report — and a dozen other data points — lenders also require an appraisal of the property you want to buy or refinance. At your expense, of course. The better you understand the process, … Read more
An 8% rental property mortgage may have seemed like a great deal 15 years ago. But rates have dropped like a rock, and your investment property’s kitchen and bathroom have seen better days. Should you sell and start over? Not if you’re willing to refinance your mortgage. Borrowers refinance their mortgages all the time, for … Read more
On a $400,000 mortgage, the difference between a 4% and a 5% interest rate comes out to almost $240 per month. That’s over $2,800 per year. You could do a lot with that kind of money. And claiming it could be as simple as locking your mortgage rate as soon as you’re ready to make … Read more
The mortgage industry is rife with jargon and acronyms, from LTV to DTI ratios. One term you’ll hear sooner or later is “conventional mortgage loan.” It sounds boring, but it couldn’t be more important. Unless you’re a veteran, live in a rural area, or have poor credit, there’s a good chance you’ll need to apply … Read more
In a contract for deed transaction, the buyer skips the traditional mortgage lender and works out a deal directly with the seller. I’ve done a contract for deed deal as the seller, and it has worked out well for both the buyer and me so far. They got financing without the credit checks or lender … Read more
With mortgage rates nearly doubling from 2021 to 2022, many homebuyers are taking a second look at adjustable-rate mortgages (ARMs). In fact, applications for ARMs have tripled since the beginning of 2022. A popular loan in the housing bubble of the mid-aughts, few borrowers have used them in recent years, given how low interest rates … Read more
Sure, adjustable-rate mortgages (ARMs) are great during the low-rate introductory period. But what happens when the fixed rate expires and starts adjusting? Higher monthly payments, that’s what. That leaves borrowers in a bind: “Should I refinance or stay the course?” Fortunately, it’s pretty easy to decide what’s best for your particular circumstances. Should I Refinance … Read more
Buying a home comes with a hundred decisions, large and small. And some are easier to answer than others. Do I have time (and patience) for a fixer-upper or should I shell out the extra cash upfront for a turnkey property? How committed am I to a big tree in the front yard? Do I … Read more
