The moment you receive the keys to your new home is a monumental achievement, but it also marks the beginning of a new financial chapter. The transiti...
Read More
Embarking on the journey to homeownership is an exciting venture, but it can also feel overwhelming. Amidst the excitement of browsing online listings...
Read More
When purchasing a home, particularly a condominium, townhouse, or a property in a planned community, prospective buyers must account for more than jus...
Read More
The relationship between your mortgage’s interest rate and its loan term is a fundamental financial dynamic that significantly impacts both your mon...
Read More
When embarking on the journey to homeownership, most prospective buyers diligently save for their down payment, viewing it as the primary financial hu...
Read More
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 MoreThe process involves applying for a new mortgage that is greater than your current mortgage balance. At closing, the old loan is paid off, and you receive the excess funds. For example, if your home is worth $400,000 and you owe $200,000, you might refinance into a new $300,000 loan. After paying off the $200,000 old loan, you would receive approximately $100,000 in cash (minus closing costs and fees).
Potentially, yes. If your switch causes a significant delay and you cannot get an extension from the seller, they may have the right to cancel the contract and keep your earnest money, especially if a backup offer is waiting.
No, it is not advisable to use all your savings. You should preserve a separate emergency fund to cover unexpected life events, job loss, or urgent home repairs. A good rule of thumb is to only use a portion of your savings specifically allocated for the home purchase.
Lenders typically require an escrow account to protect their financial interest in your property. By ensuring that property taxes and insurance are paid on time, the lender prevents situations like tax liens (which take priority over the mortgage) or uninsured damage from a fire or storm, both of which could jeopardize the value of the property that secures the loan.
Be prepared to provide additional documentation. For a job change, an employment contract or offer letter may suffice. For credit issues, you may need to provide a written letter of explanation and documentation showing the issue has been resolved (e.g., a paid collection account receipt).
