In the journey to homeownership, securing a mortgage is a pivotal step that can feel complex and overwhelming. The experience, however, is profoundly ...
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The journey from mortgage application to closing table is rarely a straight line. For many borrowers, a crucial and often misunderstood part of this p...
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Choosing a mortgage lender is one of the most significant financial decisions a person will make. While interest rates and loan terms are crucial quan...
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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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The journey to homeownership is deeply intertwined with the world of high finance, and at the center of it all sits the Federal Reserve. While a commo...
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Embarking on the journey to secure a mortgage is a significant financial undertaking, and the lender you choose becomes a critical partner in the proc...
Read MoreNo, buying points is only a good financial decision if you plan to stay in the home long enough to break even—the point where the upfront cost is recouped by the monthly savings from the lower payment. If you sell or refinance before the break-even point, you will lose money.
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.
Funds are not given directly to the borrower. They are placed in an escrow account and released to the contractor in “draws” as pre-determined stages of the work are completed and verified by a third-party inspector. This protects both you and the lender, ensuring the work is done correctly and the funds are used appropriately.
You can check your credit reports for free at AnnualCreditReport.com. To improve your score: pay all bills on time, keep credit card balances low (below 30% of your limit), avoid opening new credit accounts before applying, and dispute any errors on your reports.
Start by comparing interest rates and fees from at least 3-4 different lenders. Look beyond the rate to the annual percentage rate (APR), which includes fees. Read online reviews and ask friends for referrals. Consider the lender’s customer service—are they responsive and easy to reach? Your real estate agent can also be a great source for reputable lender recommendations.
