When embarking on the significant journey of securing a mortgage, one of the first and most crucial decisions is choosing where to obtain your loan. T...
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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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The journey to homeownership is deeply intertwined with the world of high finance, and at the center of it all sits the Federal Reserve. While a commo...
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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 relationship between your mortgage’s interest rate and its loan term is a fundamental financial dynamic that significantly impacts both your mon...
Read MoreA fixed-rate mortgage is often the best choice for someone who: Plans to stay in their home long-term (e.g., 10+ years). Values stability, predictability, and peace of mind over potential initial savings. Has a fixed income and needs to ensure their housing costs will not rise.
Common closing cost fees include:
Loan origination fee
Appraisal fee
Credit report fee
Title search and title insurance
Home inspection fee
Attorney or settlement agent fees
Prepaid property taxes and homeowners insurance
Recording fees
A repayment strategy is your proven plan for repaying the original loan amount (the principal) at the end of the mortgage term. Lenders will now insist on seeing a credible strategy before approving an interest-only mortgage. It is crucial because without one, you face the risk of losing your home. Your home may be repossessed if you do not keep up repayments on your mortgage.
If you’re self-employed, you’ll generally need to provide two years of personal and business tax returns, along with year-to-date profit and loss statements. For multiple income sources (e.g., bonuses, rental income, commissions), you’ll need documentation like tax returns and account statements to verify the amount and consistency.
The interest rate is the cost you pay each year to borrow the money, expressed as a percentage. The Annual Percentage Rate (APR) is a broader measure of the cost of your mortgage, as it includes the interest rate plus other loan costs such as points, broker fees, and certain closing costs.
