The decision between a 15-year and a 30-year mortgage is one of the most significant financial choices a homebuyer can make, setting the trajectory fo...
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The choice between a 15-year and a 30-year mortgage is one of the most significant financial decisions a homebuyer or refinancer will make. This decis...
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The journey to homeownership is often symbolized by the quest for the perfect mortgage rate, but the financial responsibility extends far beyond that ...
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In the ever-evolving landscape of real estate financing, an often-overlooked option presents a unique opportunity for both buyers and sellers: the ass...
Read MoreNo, HOA fees are completely separate from your mortgage payment. Your mortgage payment typically covers your loan principal, interest, property taxes, and homeowner’s insurance (PITI). Your HOA fee is a separate payment made directly to the homeowners association.
Yes, some costs can change. There are three categories of tolerance, or how much a cost can increase at closing:
Zero Tolerance: Cannot increase (e.g., lender’s origination fee).
10% Tolerance: Can increase up to 10% in total (e.g., certain third-party fees like title services).
No Tolerance: Can change without limit (e.g., prepaid items like daily interest or homeowner’s insurance).
A rate lock is a guarantee from the lender that your interest rate will not change between the lock date and your closing, protecting you from market fluctuations. A float-down option is a paid feature that allows you to secure a lower rate if market interest rates decrease during your lock period.
Yes, HOA fees can and often do increase. The HOA board conducts annual budgets and may raise fees to cover rising costs for services, utilities, and insurance. Special assessments (one-time fees) can also be levied for unexpected major repairs that the reserve fund cannot cover.
Your Home is Collateral: Unlike credit card debt, your home secures this loan. If you fail to make payments, you risk foreclosure and losing your home.
Closing Costs and Fees: Second mortgages come with upfront costs, such as appraisal, origination, and closing fees.
Potential for More Debt: Consolidating debt frees up your credit cards; without discipline, you could run up new balances, putting you in a worse financial position.
Longer Repayment Term: Stretching debt payments over a longer mortgage term could mean paying more interest over the life of the loan, even with a lower rate.
