When embarking on the significant journey of securing a mortgage, one of the first and most crucial decisions is choosing where to obtain your loan. T...
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In the complex journey to homeownership, navigating the labyrinth of loan options, lender criteria, and intricate paperwork can be a daunting task for...
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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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Understanding how a loan officer is compensated is a crucial, yet often overlooked, part of the mortgage journey. Many borrowers focus solely on inter...
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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 MoreThe main risk is payment shock. If interest rates rise significantly at the time of your rate adjustment, your monthly mortgage payment could increase dramatically. With a fixed-rate mortgage, you are protected from this risk for the life of the loan.
The 1% Rule is a common industry guideline that suggests you should budget for annual maintenance costs equal to 1% of your home’s purchase price. For example, on a $400,000 home, you would set aside $4,000 per year (or about $333 per month). This is a good starting point, but the actual amount can vary based on the home’s age, condition, and location.
This depends on your goals and current interest rates. Refinancing is often better if you can get a lower overall rate on your entire balance or want a single monthly payment. A subsequent mortgage is usually preferable if you want to access equity without disturbing a low-rate first mortgage or need funds quickly, as the process is often faster.
When inflation rises, central banks often raise interest rates to combat it. If you have a fixed-rate mortgage, your rate and payment are locked in and will not increase, even if new mortgage rates soar. You are effectively shielded from the impact of rising interest rates in the broader economy.
If a problem is discovered, notify your real estate agent immediately. Depending on the severity, your agent will communicate with the seller’s agent to find a resolution. Options may include:
The seller completing a last-minute repair.
The seller providing a credit at closing to cover the cost of the repair.
In extreme cases, delaying the closing until the issue is resolved.
