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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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...
Read MoreAt the end of the agreed interest-only term, you must repay the entire original loan amount. If you do not have the funds, you must contact your lender well in advance. Options may include: Switching the remaining balance to a repayment mortgage. Extending the interest-only period if you still meet the lender’s criteria. Selling the property to repay the loan. If no arrangement is made and you cannot repay, the lender may commence repossession proceedings.
Yes, you can. The process typically involves applying for the mortgage and, if approved, you will be required to open a membership account (usually a small savings account with a minimal deposit, often $5-$25) to fund the loan. The mortgage application itself can often be started before formal membership is established.
Paying discount points (an upfront fee to lower your interest rate) will typically lower your APR. This is because you are paying more upfront to reduce the ongoing interest cost, which is a major component of the APR calculation.
PMI is a type of insurance that protects the lender—not you—if you stop making payments on your conventional home loan. It is typically required when you make a down payment of less than 20% of the home’s purchase price.
An amortization schedule is a table that shows the breakdown of each monthly mortgage payment throughout the life of the loan. It details how much of each payment goes toward paying down the principal balance versus how much goes toward paying interest. Early in the loan, a larger portion of each payment goes toward interest.
