The prospect of paying off a mortgage decades into the future can feel like a financial life sentence. However, a powerful strategy exists to shorten ...
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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 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...
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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 ...
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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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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...
Read MoreYou can make an extra payment at any time, but it’s most effective early in the loan’s term when the interest portion of your payment is highest. Ensure the payment is specifically designated for “principal reduction” and is applied in the same billing cycle it’s received.
When you refinance your mortgage, your original loan is paid off, and with it, the PMI obligation on that loan. If your new loan is a conventional loan and you still have less than 20% equity, you will likely be required to pay PMI on the new loan based on its new terms.
Before you buy, your real estate agent should request an HOA resale certificate or estoppel letter. This document will disclose any current or pending special assessments. You can also directly ask the HOA property manager or board president.
Underwriters evaluate your application based on three core principles, often called the “Three C’s”:
Credit: Your credit history and score, which indicate your reliability in repaying past debts.
Capacity: Your ability to repay the new mortgage, determined by your income, employment stability, debt-to-income ratio (DTI), and other financial obligations.
Collateral: The property’s value and condition, which serves as security for the loan. This is confirmed by the appraisal.
HOA fees are regular payments (typically monthly or quarterly) made by homeowners in a community to their Homeowners Association. These fees are mandatory and are used to cover the costs of maintaining, repairing, and improving the shared/common areas and amenities of the community.
