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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If you’ve recently come into a chunk of cash—maybe an inheritance, a bonus, or the proceeds from a home sale—you might be wondering if recasting...
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When you are shopping for a mortgage, you will hear a lot about interest rates. Lenders will quote you a number, and it might look good. But here is t...
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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 ...
Read MoreYour mortgage lender is listed as the “mortgagee” or “loss payee” on your policy. This means that in the event of a claim, the insurance company may issue a check co-payable to both you and the lender. This ensures the funds are used to repair the property, protecting the lender’s collateral.
To calculate your DTI, follow these two steps:
1. Add up all your monthly debt payments. This includes your potential new mortgage payment, auto loans, student loans, minimum credit card payments, personal loans, and any other recurring debt.
2. Divide your total monthly debt by your gross monthly income. Your gross income is your total pay before any taxes or deductions are taken out.
3. Multiply the result by 100 to get a percentage.
Formula: (Total Monthly Debt Payments / Gross Monthly Income) x 100 = DTI%
A title search can take anywhere from a few days to two weeks to complete. The timeline depends on the property’s history and the efficiency of the local county records office. Complex histories with multiple previous owners or properties in counties with slower record systems can take longer.
Yes, most lenders allow you to overpay on your mortgage, typically up to 10% of the outstanding balance per year without incurring an early repayment charge (ERC). Making overpayments is a very effective way to reduce your final debt and lessen the financial impact when the interest-only period ends.
Lenders require an escrow account to protect their financial interest in your home. Since the property serves as collateral for the loan, the lender needs to ensure that the property taxes and insurance are paid. If taxes go unpaid, the local government could place a tax lien on the property, which could take priority over the lender’s mortgage. If insurance lapses, the property could be damaged or destroyed without coverage.
