Before you embark on the journey of applying for a mortgage, there is one crucial number you must know: your debt-to-income ratio, or DTI. This single...
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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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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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When you apply for a mortgage, lenders are fundamentally trying to answer one question: How likely are you to repay this large loan? While your credit...
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In the complex landscape of home financing, the concept of mortgage points offers a strategic tool for long-term savings. Essentially, mortgage points...
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The journey of homeownership is often defined by a 30-year timeline, a seemingly fixed path laid out by the terms of a mortgage. However, many homeown...
Read MoreA longer mortgage term (e.g., 30 years vs. 15 years) decreases your monthly payment but increases your overall debt load. This is because you will pay more in total interest over the extended life of the loan, even though the principal amount borrowed remains the same.
While you interact with your Broker, the Aggregator supports the process behind the scenes by ensuring the broker has access to efficient application lodgement systems, up-to-date lender policy manuals, and dedicated support lines to resolve any issues with lenders quickly, which ultimately benefits you.
The traditional 20% down payment is ideal to avoid Private Mortgage Insurance (PMI), but it’s not always required. Many conventional loans allow for down payments as low as 3-5%. FHA loans require a minimum of 3.5%, and VA and USDA loans offer 0% down payment options for eligible borrowers.
The minimum down payment depends on the loan type:
Conventional Loans: Typically 3% for qualified buyers.
FHA Loans: 3.5% with a minimum 580 credit score.
VA Loans: 0% down for eligible veterans, service members, and spouses.
USDA Loans: 0% down for eligible buyers in designated rural areas.
While requirements vary by lender, a good credit score (typically 680 or higher) will help you secure the most favorable interest rates. Some lenders may offer products for scores in the mid-600s, but you will likely face higher rates and stricter eligibility criteria.
