The journey to homeownership is often symbolized by the quest for the perfect mortgage rate, but the financial responsibility extends far beyond that ...
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The journey to homeownership is a monumental financial achievement, yet the initial mortgage payment and down payment are often just the beginning of ...
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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 excitement and a complex financial lexicon, with “closing costs” being one of the most significant yet...
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When budgeting for a new home, most prospective buyers meticulously calculate their potential mortgage payment, factoring in the principal, interest, ...
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When homeowners consider refinancing their mortgage to secure a lower interest rate or tap into their home’s equity, they often focus intently on th...
Read MorePMI is insurance that protects the lender if you default on your loan. It is typically required if your down payment is less than 20% of the home’s purchase price. The cost varies but usually falls between 0.5% and 1.5% of the loan amount annually, added to your monthly payment. You can request to cancel PMI once your equity reaches 20%.
If your forbearance is approved as part of an agreed-upon plan with your servicer, they should report it to the credit bureaus as “current” or as being in a forbearance plan, which typically does not negatively impact your credit score. However, if you were already late on payments before the forbearance was granted, those late payments would have already damaged your credit.
If you’re self-employed, you’ll generally need to provide two years of personal and business tax returns, along with year-to-date profit and loss statements. For multiple income sources (e.g., bonuses, rental income, commissions), you’ll need documentation like tax returns and account statements to verify the amount and consistency.
Generally, no. If you plan to move before reaching the break-even point (when your savings cover the closing costs), refinancing will likely cost you more money than you save. Focus on the math: if you’ll move in 2 years but your break-even is 3 years, refinancing is not financially sound.
Title insurance is a one-time premium paid at closing. The cost is typically based on the loan amount for the lender’s policy and the purchase price for the owner’s policy, and it varies by state and provider. In many areas, the seller pays for the owner’s title insurance policy as part of the negotiation, while the buyer pays for the lender’s policy. Your title agent or mortgage professional can provide a specific estimate.
