A balloon mortgage can appear as an attractive, low-cost entry into homeownership, but it carries a unique set of financial risks that borrowers must ...
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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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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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In the complex landscape of home financing, the concept of mortgage points offers a strategic tool for long-term savings. Essentially, mortgage points...
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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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When embarking on the journey of homeownership, most prospective buyers focus intently on the mortgage itself—the interest rate, the monthly payment...
Read MoreFirst-time homeowners often underestimate utilities that were previously included in rent. Be sure to account for: Water and Sewer Trash and Recycling Collection Natural Gas or Propane Increased electricity usage (for a larger space)
Jumbo loan underwriting is significantly more rigorous. Lenders will conduct a deep dive into your finances, including:
Verified Assets: You must have sufficient cash reserves, often enough to cover 6 to 12 months of mortgage payments.
Low Debt-to-Income (DTI) Ratio: Most lenders prefer a DTI ratio of 43% or lower.
Detailed Documentation: Expect to provide extensive documentation on income, assets, and employment.
The loan term (e.g., 15, 20, or 30 years) directly impacts the APR. Because fees are amortized over the life of the loan, a shorter-term loan (like a 15-year mortgage) will often have a higher APR than a 30-year loan with the same fees, as the costs are spread over fewer years.
It can. Some lenders may be hesitant if you are still in a probationary period, as your employment is not yet guaranteed. It’s often best to wait until you have successfully passed probation. However, some loan programs may be more flexible if you have a strong overall financial profile.
An Adjustable-Rate Mortgage (ARM) almost always has a lower initial interest rate than a fixed-rate mortgage. This “teaser” rate is the primary incentive for borrowers to choose an ARM, as it results in lower initial payments.
