For most homeowners, their monthly mortgage payment encompasses more than just the principal and interest on their loan. A significant portion often g...
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When navigating the path to homeownership, few steps are as pivotal and misunderstood as the property appraisal and valuation. This critical procedure...
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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...
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The journey to homeownership is often symbolized by the quest for the perfect mortgage rate, but the financial responsibility extends far beyond that ...
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In the ever-evolving landscape of real estate financing, an often-overlooked option presents a unique opportunity for both buyers and sellers: the ass...
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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 MoreIn many cases, removing an escrow account is difficult once it’s established. However, some lenders may allow you to cancel escrow after you have built significant equity (often 20% or more) and have a strong, on-time payment history for a period of one or two years. You must request this in writing, and the lender is not obligated to agree. Government-backed loans (FHA, VA, USDA) often have stricter rules and rarely allow for cancellation.
This can vary by state and local custom. Sometimes the buyer chooses, sometimes the seller chooses, and sometimes it is the lender’s preferred partner. It is often a point of negotiation in the purchase contract. It’s wise to shop around and compare services and fees.
Both products typically involve closing costs, which can include application fees, appraisals, and title searches. However, HELOCs sometimes have lower upfront costs and may even be offered with “no-closing-cost” options, where the lender covers the fees in exchange for a slightly higher interest rate.
The old servicer is required to provide a complete history of your loan to the new servicer.
This includes your payment history, escrow balance (if you have one), and any special arrangements.
It’s a good practice to keep your own records for the first few months to verify everything is correct.
Closing costs typically range from 2% to 5% of the home’s purchase price. This question helps you understand all the associated fees, such as origination fees, appraisal fees, title insurance, and prepaid items like property taxes and homeowners insurance.
