The prospect of paying off your mortgage early is a powerful financial goal for many homeowners. The idea of eliminating a significant monthly payment...
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
A balloon mortgage can appear as an attractive, low-cost entry into homeownership, but it carries a unique set of financial risks that borrowers must ...
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
A cash-out refinance is a powerful financial tool that allows homeowners to access the wealth they have built in their property. Unlike a traditional ...
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 MoreYour loan term directly impacts your monthly mortgage payment, which is a key component of your DTI ratio. A longer-term loan (like 30 years) results in a lower monthly payment, which can make it easier to meet DTI ratio requirements for loan approval. A shorter-term loan’s higher payment could make it harder to qualify.
An amortization schedule is a table that shows the breakdown of each payment into principal and interest over the life of the loan. When you make an extra principal payment, you effectively “re-amortize” the loan, moving you ahead on the schedule and reducing the total number of future payments.
Yes, in many transactions, the seller can agree to pay for some or all of the buyer’s closing costs. This is known as “seller concessions” and is often negotiated as part of the purchase agreement.
Most lenders do not charge an upfront fee for a standard rate lock period (e.g., 30-60 days). However, if you need to extend the lock period because your closing is delayed, you will likely incur an extension fee. Longer lock periods (e.g., 90+ days) may also come with a higher initial cost or a slightly higher interest rate.
A recast is a formal process where, after a significant lump-sum principal payment, your lender re-amortizes the loan, resulting in a lower monthly payment for the remaining term. Making standard extra payments does not change your monthly payment but shortens the loan’s term.
