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 ...
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An interest-only mortgage is a type of home loan that offers a distinct, and often alluring, payment structure. For a set period, typically the first ...
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The journey to homeownership is filled with critical decisions, and one of the most nerve-wracking questions that can arise late in the process is whe...
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For many homeowners, managing multiple high-interest debts can feel like a constant financial battle. Between credit card bills, personal loans, and o...
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Embarking on the journey to secure a mortgage is a significant financial undertaking, and the lender you choose becomes a critical partner in the proc...
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Accessing the equity in your home can feel like discovering a hidden treasure chest. After years of mortgage payments and, ideally, rising property va...
Read MoreGenerally, no. A standard mortgage loan is intended solely for purchasing the physical structure and the land it sits on. Furnishings are considered personal property, not part of the real estate. However, some new construction loans may allow certain “soft costs” like landscaping to be included if they are part of the builder’s original plan and increase the home’s value.
Most lenders require a minimum of $100,000 in personal liability coverage. However, financial experts often recommend carrying at least $300,000 to $500,000 to protect your assets from lawsuits if someone is injured on your property. An umbrella policy can provide additional coverage beyond your homeowners policy limits.
You can usually switch to a repayment mortgage at any time, often without a fee. This is done by contacting your lender and requesting the change. Your lender will recalculate your monthly payments based on the remaining loan term and balance. Many borrowers do this when their financial circumstances improve to start building equity and avoid the large payment shock later.
You’ll typically need: recent pay stubs (last 30 days), W-2 forms from the past two years, federal tax returns from the past two years, bank and investment account statements (last 2-3 months), proof of any additional income, and a government-issued photo ID.
The “5” refers to the number of years your initial fixed interest rate will last. The “1” means that after the initial 5-year period, the interest rate can adjust once per year for the remaining life of the loan. Other common structures are 7/1 ARMs and 10/1 ARMs.
