For most homeowners, their monthly mortgage payment encompasses more than just the principal and interest on their loan. A significant portion often g...
Read More
For many homeowners, the ability to deduct mortgage interest on their tax returns is one of the most significant financial benefits of owning a home. ...
Read More
The journey to homeownership is often symbolized by the quest for the perfect mortgage rate, but the financial responsibility extends far beyond that ...
Read More
Before you embark on the journey of applying for a mortgage, there is one crucial number you must know: your debt-to-income ratio, or DTI. This single...
Read More
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 More
The moment you receive the keys to your new home is a monumental achievement, but it also marks the beginning of a new financial chapter. The transiti...
Read MoreLenders typically require you to have a minimum of 20-25% equity in your home after the combined total of your first and new subsequent mortgage is calculated. The exact amount depends on the lender and your financial profile.
Some mortgages have a “prepayment penalty,“ a fee for paying off the loan ahead of schedule. This is more common in the early years of the loan. Review your original loan documents or contact your lender directly to confirm if your mortgage has this clause.
A jumbo loan is a type of mortgage that exceeds the conforming loan limits set by the Federal Housing Finance Agency (FHFA). These loans are used to finance high-value properties that are too expensive for a standard conforming loan, which makes them “non-conforming.“
The underwriting process itself typically takes a few days to a week. However, the entire period from when you submit your full application to when you receive “clear to close” can take several weeks, as it includes the time needed for you to fulfill conditions, the appraisal, and the title search.
An escrow account is a holding account managed by your mortgage lender.
You pay a portion of your annual property taxes and homeowner’s insurance into this account with each monthly mortgage payment.
The lender then pays these large bills on your behalf when they come due.
This helps you budget for these expenses in smaller, monthly increments rather than facing one large annual bill.
