The journey to homeownership culminates in two critical final steps: the final walkthrough and the review of the Closing Disclosure. While they occur ...
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When embarking on the journey to homeownership, most prospective buyers diligently save for their down payment, viewing it as the primary financial hu...
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The journey to homeownership is filled with critical decisions, and one of the most nerve-wracking questions that can arise late in the process is whe...
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The journey to homeownership is filled with excitement and a complex financial lexicon, with “closing costs” being one of the most significant yet...
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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...
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A cash-out refinance is a powerful financial tool that allows homeowners to access the wealth they have built in their property. Unlike a traditional ...
Read MoreA rate lock guarantees your interest rate for a specified period, protecting you from market increases. Ask how long the lock lasts, what happens if your closing is delayed, and if there is a fee to lock the rate or extend the lock.
Lenders face two primary risks over time: default risk (the borrower stops paying) and interest rate risk (market rates rise, making the lender’s fixed-rate loan less profitable). A shorter loan term reduces the lender’s exposure to both of these risks, so they offer a lower rate as an incentive for you to borrow for a shorter period.
Yes, for residential mortgages (your main home), interest-only products are regulated by the Financial Conduct Authority (FCA). Lenders must follow strict rules to ensure the product is suitable for you and that you have a credible repayment strategy. Buy-to-let interest-only mortgages are not regulated to the same degree.
Loan stacking is when you take out multiple home equity loans or lines of credit from different lenders at the same time. This is extremely risky because it can over-leverage your property to an unsustainable level, dramatically increasing your monthly payments and the likelihood of default and foreclosure. Most legitimate lenders will check for this and refuse to proceed if other recent loans are found.
You can usually switch to a repayment mortgage at any time, often without a fee. This is done by contacting your lender and requesting the change. Your lender will recalculate your monthly payments based on the remaining loan term and balance. Many borrowers do this when their financial circumstances improve to start building equity and avoid the large payment shock later.
