Today’s higher mortgage interest rates have many homeowners hesitant to sell their houses and buy new ones. But the skyrocketing home prices of recent years mean that many of those owners are sitting on substantial home equity. Here’s how that equity can soften the blow of higher interest rates. Two factors increasing home equity Your… Read more »
Today’s mortgage interest rates are a good bit higher than those of a few years ago, and that’s keeping many buyers on the sidelines, waiting for a better rate. Should you wait until interest rates drop to buy a house? Experts generally say no. Here’s what you need to consider. No crystal ball of interest… Read more »
Today’s higher interest rates are squeezing would-be home buyers. Less than three years ago, rates were below 4 percent. Now they are above seven, and monthly payments have soared. This has driven home sales down and generated fresh interest in creative financing programs. If you’re in the market for a home, consider these alternatives to… Read more »
If you are a homeowner behind on your mortgage payments, you may be able to extend the term of your mortgage to 40 years under a federal program that began May 8, 2023. The Department of Housing and Urban Development (HUD) will allow homeowners who are behind on payments on their Federal Housing Administration (FHA)… Read more »
In its battle to tamp down inflation, the Federal Reserve has increased the interest rates banks charge each other, which ripples through other lending markets, including mortgages. Further increases are possible. Are you helpless in the face of these mortgage rate increases? Not necessarily if you maintain a good credit score. Here’s what you can… Read more »
Several types of insurance can come into play if you own a home. One of them is mortgage protection insurance. What does this insurance cover? Should you buy it? Here’s what you need to know. Paying off the mortgage The purpose of mortgage protection insurance (MPI) is to pay off the homeowner’s mortgage should he… Read more »
If you’re trying to get a mortgage, you may hear the lender refer to a broker price opinion. Is that the same thing as an appraisal, or a comparative market analysis? Not really. Let’s explore the differences in these three ways of valuing a house. Three ways toward valuation A broker price opinion (BPO) is… Read more »
Significant financial misfortune may lead you to do the unthinkable: file for bankruptcy. You may fear that this means the American dream of homeownership is out of reach, but all is not lost. Homeownership after bankruptcy is possible. Types of bankruptcy Federal law allows individuals to file two types of bankruptcy: chapter 7 and chapter… Read more »
When you apply for a mortgage, your lender will have you complete the Uniform Residential Loan Application (URLA). This form, designed by the federal government and used nationwide, can be daunting for first-timers. Being informed helps relieve confusion, so read on. The basis of the form Two government-sponsored agencies, the Federal National Mortgage Association (Fannie… Read more »
Special financial assistance is available for teachers seeking to buy a first home, refinance a home, or even repair an old home or add energy-saving improvements. This help translates to potentially lower closing costs and fees and a streamlined path to homeownership. National Education Association With membership, the National Education Association, or NEA as it… Read more »
Barns are no longer just spaces for livestock and farm equipment. Today, living in converted barns or brand-new, barn-like homes has become popular. Here’s what you need to know about the growing trend of barndominium living. The rise of the barn living It’s been common for people to convert barns into temporary places to live… Read more »
Whether you are self-employed, a freelancer or have a variable income stream, you’ll face special challenges getting a typical mortgage and may need to apply for a bank statement loan. What is a bank statement loan, and how do these loans work? What is a bank statement loan? A bank statement loan is a product… Read more »
Illness, job loss and other problems related to the current coronavirus pandemic have left many homeowners and renters unable to pay their mortgages or monthly rent payments. Fortunately, the federal Coronavirus Aid, Relief, and Economic Security Act (CARES), which took effect in late March, provides some welcome relief to homeowners, renters, and the owners of… Read more »
Getting your first home mortgage can be intimidating. Let’s eliminate fear of the unknown by answering some common questions. Q: Can I get a mortgage even though I have bad credit? Yes, though you’ll get better interest rates with a good credit rating. With conventional financing you can get a loan with a FICO credit… Read more »
Homeowners face stiff penalties both for paying off their mortgages early and for making their monthly payments late. Here’s how mortgage prepayment and late payment penalties work and what you can do to avoid them. The cost of mortgage prepayment Prepayment penalties are charged when a borrower pays all or part of a mortgage ahead… Read more »
Experts stress the importance of maintaining good credit before you apply for a mortgage. But after you get that mortgage and close on a new house, what happens to your credit score? Keep working hard on your credit score It takes years of acquiring and faithfully paying off smaller amounts of debt to build the… Read more »
If you’re in the market for a home, particularly your first one, it’s advisable to meet with a mortgage lender at the beginning of the process. Having a mortgage pre approval letter from a lender will save time for you, your agent and the seller. What do you need to provide the lender to get… Read more »
If you make only the monthly payments set by your mortgage company, in the end, you will pay a significant amount of interest. Making biweekly mortgage payments can save you money by reducing interest and shortening the term of the loan. Here’s how. Chipping away a little at a time Paying off a mortgage over… Read more »
It’s true. Mortgage rates had risen slightly over the past several months, but is that reason enough to halt your search for a new home? Not likely, because mortgage rates have since dropped and are still at historic lows. It’s a Numbers Game Simply put, the lower your rate, the lower your house payment. Federal… Read more »
The trend in home buying has moved away from large down payments. In fact, today’s average down payment is just 6 percent, with zero-out-of-pocket deals more common than you might think. Accumulating savings while working can be difficult, especially for young first-time buyers with large amounts of student loan debt and beginner-level salaries. Here are… Read more »
