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...
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The journey of homeownership is often defined by a 30-year timeline, a seemingly fixed path laid out by the terms of a mortgage. However, many homeown...
Read MoreAbsolutely. You have the right to choose your own homeowners insurance provider, even with an escrow account. If you find a better or cheaper policy, you simply need to provide your lender with the new insurance company’s information and proof of coverage. Your lender will then update the records and adjust your escrow payments accordingly during the next analysis.
This is the fundamental difference in how you pay back the loan:
Repayment Mortgage: Each monthly payment covers the interest charged and a portion of the original loan amount. At the end of the term, the loan is guaranteed to be fully repaid.
Interest-Only Mortgage: Your monthly payments only cover the interest. The original loan amount remains unchanged and must be repaid in full at the end of the term through a separate repayment strategy.
Be Proactive: Submit all requested documents quickly and completely.
Be Honest: Disclose all financial information accurately from the start.
Avoid Major Financial Changes: Do not open new credit cards, take out new loans, or make large, undocumented deposits into your accounts during this time.
Stay Employed: Do not quit or change your job.
Respond Promptly: Answer any questions from your loan officer or underwriter as soon as possible.
Your credit score directly influences your ability to refinance or access a HELOC at a favorable rate. A high score gives you more options and lower interest rates, saving you money. A low score can lock you into your current loan. Managing your credit responsibly throughout your mortgage term is crucial for maintaining financial flexibility.
A title search is a detailed examination of public records to confirm a property’s legal ownership and identify any claims or liens against it. This process, typically conducted by a title company or attorney, verifies that the seller has the right to transfer ownership and uncovers issues like unpaid taxes, mortgages, or legal judgments that could affect the new owner.
