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 MoreLarge Cash Requirement: The need to cover the equity gap in cash can be a major hurdle. A “Subject-To” Trap: If the assumption is done “subject-to” the existing mortgage without lender approval, the original borrower may still be liable, and the lender could call the loan due. Property Issues: The buyer inherits any liens or title issues associated with the property. Slow Process: The assumption process can be slower than a traditional mortgage.
Rate locks typically last for 30, 45, or 60 days, which aligns with the average mortgage processing timeline. You can also find locks for shorter (e.g., 15 days) or longer (e.g., 90, 120 days) periods. The length you need depends on the complexity of your loan and your closing date.
The cost can be substantial. On a $300,000, 30-year fixed-rate mortgage, a borrower with a “Fair” score might get a rate of 7.5%, while a borrower with an “Excellent” score might get 6.25%. The borrower with the lower score would pay over $100,000 more in interest over the 30-year term. This highlights the immense financial value of a good credit score.
A “no closing cost” loan typically means the lender covers your closing costs in exchange for a slightly higher interest rate. Negotiating fees, on the other hand, is the process of asking the lender to reduce or eliminate their specific fees without necessarily adjusting the rate. You can often do both: negotiate fees down and then decide if you want to pay them upfront or take a higher rate to cover them.
A good rule of thumb is to set aside 1% to 2% of your home’s purchase price each year for maintenance and repairs.
For a $300,000 home, this means budgeting $3,000 to $6,000 annually.
This fund is for ongoing upkeep like HVAC servicing, gutter cleaning, and unexpected repairs like a broken appliance or a leaky roof.
