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...
Read More
When navigating the path to homeownership, few steps are as pivotal and misunderstood as the property appraisal and valuation. This critical procedure...
Read More
The choice between a 15-year and a 30-year mortgage is one of the most significant financial decisions a homebuyer or refinancer will make. This decis...
Read More
Before you embark on the journey of applying for a mortgage, there is one crucial number you must know: your debt-to-income ratio, or DTI. This single...
Read More
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...
Read More
The journey from mortgage application to closing table is rarely a straight line. For many borrowers, a crucial and often misunderstood part of this p...
Read MoreRecasting: You make a large lump-sum payment toward the principal, and the lender re-amortizes your loan based on the new, lower balance. Your interest rate and term stay the same, but your monthly payment is reduced. There is usually a small fee. Refinancing: You replace your existing mortgage with a completely new loan, often to secure a lower interest rate or change the loan term. This involves closing costs and a full credit check.
Yes, absolutely. While your general emergency fund (3-6 months of living expenses) covers income loss, a separate home maintenance fund is specifically for unexpected household repairs, like a broken water heater or a leaking roof. This prevents you from derailing your overall financial stability when a home-related crisis occurs.
Understanding the incentive structure helps you be a more informed consumer. It clarifies that your loan officer’s goal is to get your loan closed, which generally aligns with your goal. It also helps you understand that they are not rate-based salespeople and can build trust in the advice they provide.
A cash-out refinance involves replacing your existing mortgage with a new, larger one. You receive the difference between the two loans in cash. For instance, if you owe $200,000 on a home worth $450,000, you might refinance into a new mortgage for $315,000, paying off the original $200,000 and walking away with $115,000 in cash to use for renovations.
While FHA loans are accessible, they have some drawbacks:
Lifetime Mortgage Insurance: The annual MIP typically lasts for the entire loan term if your down payment is less than 10%.
Loan Limits: You cannot borrow more than the FHA limit for your county.
Property Standards: The home must meet stricter FHA minimum property standards.
