The question of when to negotiate fees and rates is not merely a logistical one; it is a strategic decision that can define the trajectory of a profes...
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Embarking on the journey to homeownership is an exciting venture, but it can also feel overwhelming. Amidst the excitement of browsing online listings...
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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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The prospect of securing a mortgage can feel like accepting a non-negotiable set of terms handed down from a powerful financial institution. However, ...
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The pursuit of homeownership and financial leverage often leads borrowers through a series of loans, starting with a primary mortgage and potentially ...
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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 MoreBeyond the initial installation, budget for: Weekly/Bi-weekly Maintenance: Mowing, edging, and blowing ($50 - $150 per visit). Seasonal Clean-ups: Leaf removal, pruning, etc. Water: For irrigation, which can significantly increase your utility bill. Replenishment: Mulch, soil, and fertilizer typically need refreshing annually.
Title insurance is a one-time premium paid at closing. The cost is typically based on the loan amount for the lender’s policy and the purchase price for the owner’s policy, and it varies by state and provider. In many areas, the seller pays for the owner’s title insurance policy as part of the negotiation, while the buyer pays for the lender’s policy. Your title agent or mortgage professional can provide a specific estimate.
Home equity is the portion of your home that you truly “own.“ It’s calculated by taking your home’s current market value and subtracting the remaining balance on your mortgage. For example, if your home is worth $400,000 and you owe $250,000 on your mortgage, you have $150,000 in equity.
The process is generally simple:
1. Check Eligibility: Contact your lender to confirm they offer recasts and that your loan type qualifies (e.g., conventional loans often do; FHA/VA may not).
2. Make a Lump-Sum Payment: You must make a significant principal payment, which often has a minimum requirement (e.g., $5,000 or more).
3. Submit a Request & Pay Fee: Formally request the recast from your loan servicer and pay the associated processing fee.
4. Lender Re-amortizes: Your lender applies the payment and creates a new amortization schedule based on the lower principal.
5. Confirmation: You will receive confirmation of your new, lower monthly payment and the date it takes effect.
Congratulations! With your largest monthly expense gone, you can:
Supercharge your retirement and investment accounts.
Save for other large goals, like college funds or a vacation property.
Build a more substantial cash cushion.
Enjoy the financial security and peace of mind that comes with owning your home free and clear.
