Your credit score is far more than just a number; it is the cornerstone of your financial profile and a critical factor in the mortgage application pr...
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Navigating the mortgage landscape requires understanding the fundamental categories of home loans, primarily the distinction between conventional conf...
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When purchasing a home, particularly a condominium, townhouse, or a property in a planned community, prospective buyers must account for more than jus...
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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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When you begin the journey of purchasing a home, you quickly learn that your credit score is more than just a number—it is the financial passport th...
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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 MoreFormally known as an Exterior-Only Inspection Appraisal, this is a less common type where the appraiser does not enter the home. They value the property based on exterior observations and public records. Lenders may only use this for certain low-risk loans (like some refinances) or when an interior inspection is not feasible.
You must ask the seller or their real estate agent directly. They should know the type of loan they have. The listing may even advertise “Assumable Mortgage” as a key feature to attract buyers.
Rates are determined by your credit score, loan-to-value (LTV) ratio, the amount of equity you have, your debt-to-income (DTI) ratio, and the overall perceived risk of the loan. Because they are in second position, rates are almost always higher than first mortgage rates.
Long-term mortgage management is the ongoing process of strategically handling your mortgage over its entire lifespan, typically 15 to 30 years. It’s not just about making monthly payments; it’s about actively monitoring your loan, understanding your equity, and making informed decisions to save money, reduce risk, and achieve your financial goals faster. Proper management can save you tens of thousands of dollars in interest and help you build wealth through home equity.
The loan term has a massive impact on your total interest paid. Even with a slightly higher rate, a 30-year loan will always cost you more in total interest than a 15-year loan for the same amount because you are paying interest for twice as long. With a lower rate on a 15-year loan, the savings are even more dramatic.
