Another confusing part of the mortgage loan closing. The escrow account funds are wrapped into the total closing cost on the loan estimate and they are a cash outlay at the time of the closing. But are these funds an actual transaction cost? Read on to find the answers. What is a Mortgage Loan Escrow […]
What is Conforming Loan Size Limit and Who Sets It? The Federal Housing Finance Agency (FHFA) oversees Fannie Mae and Freddie Mac and is responsible for annually adjusting the conforming loan limits based on changes in home prices and costs of living in different areas. These limits help maintain the balance between providing affordable financing […]
Paying off My Mortgage Faster – Pros, Cons & Hows Deciding whether to pay off your mortgage faster depends on your financial goals, personal situation, and priorities. While paying off a mortgage early can provide peace of mind and reduce monthly expenses, for some people, the greater financial growth from other investments or savings can […]
What is PMI for Mortgage Loans? PMI, or Private Mortgage Insurance, has been around in various forms for well over a century. It is a type of insurance that protects the mortgage lender in case the borrower defaults on a mortgage loan. PMI is typically required when a borrower makes a down payment of less […]
Getting a mortgage as self-employed Getting a mortgage for a regularly employed individual can be complicated. You must meet all the lender’s requirements pertaining to the credit score, down payment and debt-to-income ratio (DTI). Being self-employed adds a significant layer of complexity to this process. Lenders often view self-employed borrowers as higher-risk compared to traditional […]
What is a HELOC? A Home Equity Line of Credit (HELOC) is a type of loan that allows homeowners to borrow against the equity in their homes. Here are the key features and details: Revolving Credit Line: Unlike a traditional loan, which provides a lump sum, a HELOC works more like a credit card. You […]
My personal opinion on this has always been buy when can, do not wait for improved market conditions. There are opportunity costs to waiting to purchase a home and I will get to them in a bit, but first let’s discuss the current (end of March 2024) interest rates: Are current mortgage interest rates high? […]
In the world of home financing, a Federal Housing Administration (FHA) Loan shines brightly offering a ray of hope for countless prospective homebuyers. Tailored specifically for individuals with modest incomes or less-than-perfect credit scores, FHA loans offer a unique opportunity to turn the dream of owning a home into reality. Whether you’re a first-time homebuyer […]
In anticipation of the changing economic landscape and evolving real estate market, 2024 brings with it a significant shift in the conforming loan size limits. These limits, determined by federal authorities, play a pivotal role in defining the accessibility and affordability of mortgages for aspiring homeowners. As we delve into the details of the 2024 […]
The credit score you need to buy a house can vary depending on the type of mortgage loan you are applying for and the lender’s requirements. Generally, a higher credit score will make it easier to qualify for a mortgage and secure lower interest rates. Here is a rough guideline: Keep in mind that your […]
