A balloon mortgage can appear as an attractive, low-cost entry into homeownership, but it carries a unique set of financial risks that borrowers must ...
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In the diverse landscape of home financing, the balloon mortgage stands as a unique and often misunderstood instrument. Unlike the ubiquitous 30-year ...
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Experiencing a financial hardship that threatens your ability to make your mortgage payment is a deeply stressful situation. Whether due to job loss, ...
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An interest-only mortgage is a type of home loan that offers a distinct, and often alluring, payment structure. For a set period, typically the first ...
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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...
Read MoreSome closing costs are negotiable. You can often shop for services like the home inspection, title search, and homeowners insurance. You can also sometimes negotiate with the seller to pay a portion of the closing costs.
Loan officer compensation is generally not allowed to be directly tied to a loan’s specific interest rate or terms (due to regulations like the Loan Originator Compensation Rule). However, their overall commission plan is based on the total revenue of the loans they close, which is influenced by the rates and fees the lender offers.
The coverage of HOA fees varies by community, but they generally pay for:
Common Area Maintenance: Landscaping, lighting, and cleaning for parks, pools, clubhouses, and lobbies.
Amenities: Upkeep and insurance for pools, gyms, tennis courts, and security gates.
Utilities: Water and electricity for common areas, and sometimes trash collection for individual homes.
Insurance: Master liability and property insurance for all shared structures.
Reserve Fund: A savings account for major future repairs like repaving roads, replacing roofs on condos, or repainting exteriors.
Management Costs: Salaries for a property management company and HOA administration.
You have several options to check your score without paying:
Your Credit Card Statement: Many credit card companies now provide a free FICO® or VantageScore® as a cardholder benefit.
Your Bank or Credit Union: Online banking portals often offer free credit score access to their customers.
Non-Profit Credit Counselors: HUD-approved agencies can help you access your reports and scores.
Free Online Services: Websites like Credit Karma or Credit Sesame provide free VantageScores, which are good for monitoring but note that most lenders use FICO® for mortgages.
A good rule of thumb is to save between 2% and 5% of your home’s purchase price. For example, on a $300,000 home, you should budget between $6,000 and $15,000 for closing costs.
