The journey from mortgage application to closing table is rarely a straight line. For many borrowers, a crucial and often misunderstood part of this p...
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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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In the complex journey to homeownership, navigating the labyrinth of loan options, lender criteria, and intricate paperwork can be a daunting task for...
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The journey to homeownership is paved with important financial decisions, and understanding mortgage rates is arguably the most critical. A mortgage r...
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When budgeting for a new home, most prospective buyers meticulously calculate their potential mortgage payment, factoring in the principal, interest, ...
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The underwriting process is the critical, behind-the-scenes heart of any loan application, where a lender meticulously assesses risk before granting a...
Read MoreA home equity loan or line of credit adds a second monthly payment on top of your existing primary mortgage. This increases your fixed monthly housing costs, which can strain your budget, especially if you experience a job loss, unexpected medical bills, or a reduction in income.
Your deductible does not directly affect your mortgage terms. However, you should choose a deductible you can comfortably afford to pay out-of-pocket if you file a claim. A higher deductible usually lowers your premium but means you pay more upfront for repairs.
This depends on your financial goals and risk tolerance. Compare your mortgage’s after-tax interest rate to the potential after-tax return on investments. If your mortgage rate is high, paying it down offers a guaranteed “return.“ If you can earn a higher, reliable return by investing, that may be the better path.
A non-conforming loan is necessary when a borrower’s needs or financial profile falls outside the “one-size-fits-all” conforming box. Common scenarios include:
Needing to borrow more than the conforming loan limit for their area (a Jumbo loan).
Having unique or difficult-to-verify income (self-employed borrowers).
Having a lower credit score or a higher debt-to-income ratio than conforming standards allow.
Purchasing a unique property type that doesn’t meet GSE standards.
Rebuilding credit is a marathon, not a sprint. The timeline depends on the severity of the issues:
Raising your score by a few points by lowering your credit utilization can happen in just one billing cycle.
Recovering from a series of late payments typically takes at least 6-12 months of consistent on-time payments to see significant improvement.
Rebuilding after a major event like bankruptcy or foreclosure is a longer process, often taking 2-5 years of perfect financial behavior to reach a “good” score range.
