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...
Read More
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...
Read More
The journey to homeownership is filled with critical decisions, and one of the most fundamental is choosing between a fixed-rate mortgage and an adjus...
Read More
Navigating the world of home financing begins with a fundamental understanding of mortgage types and terms. A mortgage is more than just a loan; it is...
Read More
The relationship between your mortgage’s interest rate and its loan term is a fundamental financial dynamic that significantly impacts both your mon...
Read More
For many homeowners, the monthly mortgage payment includes an unwelcome guest: Private Mortgage Insurance, or PMI. This additional fee is a common req...
Read MoreThe process varies by lender. Typically, you can do this through your online mortgage account portal, by phone, or by mailing a check. It is critical to include clear written instructions (e.g., “Apply to principal reduction only”) and to verify the payment was applied correctly on your next statement.
The cost of PMI varies but typically ranges from 0.5% to 1.5% of the original loan amount per year. This cost is divided into monthly payments added to your mortgage statement. For example, on a $300,000 loan, you might pay between $125 and $375 per month.
Failure to pay a special assessment is treated similarly to not paying your regular HOA dues. The association can:
Charge late fees and interest.
Place a lien on your property.
In some states, pursue foreclosure on the lien, which could lead to the loss of your home.
Be prepared to provide additional documentation. For a job change, an employment contract or offer letter may suffice. For credit issues, you may need to provide a written letter of explanation and documentation showing the issue has been resolved (e.g., a paid collection account receipt).
Your credit score is a numerical summary of your credit risk. A higher score signals to the underwriter that you are a responsible borrower, which can lead to a smoother approval process and a better interest rate. A lower score may result in a higher rate, a requirement for a larger down payment, or even denial.
