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 filled with critical decisions, and one of the most fundamental is choosing between a fixed-rate mortgage and an adjus...
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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...
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The relationship between your mortgage’s interest rate and its loan term is a fundamental financial dynamic that significantly impacts both your mon...
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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 loan term has a massive impact on your total interest paid. Even with a slightly higher rate, a 30-year loan will always cost you more in total interest than a 15-year loan for the same amount because you are paying interest for twice as long. With a lower rate on a 15-year loan, the savings are even more dramatic.
Third mortgages are not offered by traditional banks or major lenders. You will need to seek out private lenders, hard money lenders, or specialized alternative finance companies. Be prepared for rigorous scrutiny and less favorable terms.
Most lenders do not charge an upfront fee for a standard rate lock period (e.g., 30-60 days). However, if you need to extend the lock period because your closing is delayed, you will likely incur an extension fee. Longer lock periods (e.g., 90+ days) may also come with a higher initial cost or a slightly higher interest rate.
Ideally, start 6-12 months before you plan to buy. This gives you time to improve your credit score, save for a down payment and closing costs, reduce your debt, and stabilize your employment history without feeling rushed.
This income can be used to help you qualify, but it must be consistent and likely to continue. Lenders will typically average this “variable income” over the last two years. You’ll need to provide documentation like tax returns and pay stubs that detail these earnings.
