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 you apply for a mortgage, lenders are fundamentally trying to answer one question: How likely are you to repay this large loan? While your credit...
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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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For most homeowners, their monthly mortgage payment encompasses more than just the principal and interest on their loan. A significant portion often g...
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The journey to homeownership is paved with important documents, and one of the most critical early milestones is receiving the Loan Estimate from your...
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An escrow account is a fundamental component of the homeownership journey, serving as a financial safeguard for both the lender and the borrower. Esse...
Read MoreBe polite, prepared, and direct. You could say: “I’m very interested in moving forward with your company, but I’ve received a Loan Estimate from another lender with a lower [rate/origination fee]. Is there anything you can do to match or improve upon that offer to earn my business?“ Having the competing document in hand is crucial.
Yes, this is a very common and powerful strategy. By making extra principal payments on a 30-year loan, you can pay it off in 20, 15, or even 10 years. The key advantage is flexibility: you have the lower required monthly payment of a 30-year loan, but you can choose to pay it down faster when you have extra cash. You must specify that extra payments are for “principal reduction only.“
You will typically need to provide:
Proof of income: Recent pay stubs, W-2s from the past two years, and tax returns.
Proof of assets: Bank and investment account statements.
Identification: A government-issued ID, like a driver’s license or passport.
Credit authorization: Lenders will pull your credit report with your permission.
The most common reason for a monthly payment increase is an escrow shortage due to a rise in your property taxes or homeowners insurance premiums. After the annual escrow analysis, if a shortage is identified, your lender will increase your monthly payment to cover the higher anticipated costs and to replenish the account.
The core new housing costs fall into two categories: Principal & Interest (your main mortgage payment) and Other Mandatory Costs. The mandatory costs often include:
Property Taxes
Homeowners Insurance
Mortgage Insurance (if applicable)
Homeowners Association (HOA) or Condo Fees
