During your home buying process, you might have heard the term cash to close. While cash to close might evoke images of showing up to closing with a duffle bag full of cash, that idea can be misleading since virtually no one uses paper money for cash to close. Though your down payment and mortgage
Mortgages
Buying a home is often the most significant purchase you’ll make and one of the tenets of the American Dream. Though some people might assume that a disability can make it difficult or impossible to get a home loan, individuals with disabilities have plenty of options for getting a mortgage. Even if your sole source
Like snowflakes, no two home buyers are alike. And there are different types of mortgage loans to accommodate different types of buyers and home refinances. But every mortgage option has its benefits and drawbacks. That’s why it’s important to find the best home loan for your unique situation. To begin our journey through mortgage options,
Buying a home is a big decision. It may be the most expensive purchase you’ll ever make. Because the stakes are so high, you should learn as much as you can about the home buying process before you take the proverbial plunge. One way to do that is by taking a first-time home buyers class.
When it comes to investing, it seems like there are endless options available today. Among the most popular investment options are real estate, stocks and bonds. And to keep things interesting, within each of these investment categories, you’ll find a variety of investment options to consider. We’re going to focus on one investment category: bonds.
Have you been thinking about trying to save money by refinancing your home equity loan, home equity line of credit (HELOC) or another second mortgage? If interest rates are lower than they were when you first took out your loan, you can save money by lowering your monthly mortgage payment or shortening the loan’s length
When a deal is signed in real estate, it usually means everything has been agreed to and completed. That’s the rule – but every rule has its exception. In the case of closing on a home, the exception is a dry closing. A dry closing happens when the seller and buyer agree to complete a
If you’re exploring options for buying or refinancing a home, you might be worried about the minimum credit requirements associated with certain loans. Thankfully, when it comes to buying or refinancing a home with less-than-stellar credit, nonconforming loans can be a great solution. Nonconforming loans often get a bad rap, likely because their name implies
Have you ever wished you could invest in real estate without spending all your savings? Well, a participation mortgage might be the perfect solution for you. A participation mortgage allows multiple people or entities to team up and share in real estate investment costs and profits, while also reducing each participant’s risk exposure on a
When you have a mortgage, you are not the owner of your home – at least, not yet. Until the property has been paid off in full, a portion of your home is owned by the mortgage lender. Eventually, if you keep making your monthly mortgage payments, you’ll own your home in full. This process
Oddly enough, owning a home does not give you complete control over it. There may be a variety of limits or claims on your property rights, including liens and encumbrances. Liens and encumbrances are different – and understanding these differences will help shed light on the broader topic of titles and other legal matters around
Though most buyers will use a traditional mortgage to purchase their home, there are other options to explore when it comes to financing a home purchase. If you’re having a difficult time with traditional avenues of home financing – like a home loan from banks or other mortgage lenders or a Federal Housing Administration (FHA)
When you’re shopping for a mortgage, you’ll quickly discover that the 30-year fixed-rate mortgage is the go-to for most home buyers. But maybe you’re not interested in a long-term commitment with a mortgage. A short-term mortgage is a home loan with a shorter repayment period than a traditional 30-year mortgage. These loans are typically used
If tapping into your home’s equity is in your future, so is a whole lot of paperwork. And whether you’re taking out a home equity loan or a home equity line of credit (HELOC) (both are types of second mortgages or junior liens), you may be presented with a subordination agreement to sign at closing.
The Federal Housing Administration (FHA) is tasked with insuring home mortgage loans and making homeownership safer and more accessible while reducing risks for lenders. The FHA’s promise to repay a loan if the borrower defaults provides lenders with a sense of financial security, encouraging them to issue home loans with lower down payments and longer
If you’re not familiar with Regulation Z, the name might sound ominous (images of a plotting Dr. Evil or Filch tacking magical decrees to the wall), but it’s one of the most successful consumer protection laws in the U.S. Regulation Z, also referred to as the Truth in Lending Act (TILA), established a series of
If you’re shopping for a home loan, you’re probably familiar with the concept of mortgage rates. You probably also know that even a small change to that number can change the amount you pay in interest over the life of a loan by tens of thousands of dollars. But you may not have heard of
Real estate transactions are often chock full of complex terms, complex jargon and complex concepts. Even a question as simple as whether you or not you own your home after closing can result in a not-so-simple answer. (Hint: It depends on which state you live in.) The answer to the question of ownership may rest
As a homeowner, you don’t plan on having to deal with foreclosure – and hopefully, you won’t ever have to. You can help prevent foreclosure by making your payments on time and communicating with your lender, but sometimes life hits unexpectedly hard, making it difficult or impossible to pay your mortgage. A single late payment
If you’re like most people, you may not fully understand the purpose of an impound account. In short, an “impound account,” also known as an “escrow account,” is a way for your lender to ensure your property taxes and homeowners insurance are paid on time. The lender is responsible for managing the account, but it’s
If you spend any time around homeowners, you’ll probably hear at least one of them talk about making an extra mortgage (or principal) payment to pay off their mortgage faster. This process is sometimes called mortgage curtailment or a principal reduction (although most people don’t use that term in casual conversation). It’s a common strategy,
If you’re a homeowner, you’re probably wondering if there’s a way to get a better deal on your mortgage. After a couple of years of homeownership, you may have better credit and more income than you did when you first bought your home. So why not get a better mortgage than the one you started
If you’re wondering how the government and other people will know your house is actually yours, then you’ll want to understand how deeds work. There are several types of deeds, but the ones you’ll want to seek out are known as warranty deeds because they can help protect you and your rights as a homeowner.
The mortgage interest deduction is a popular tax break that allows homeowners to write off the home loan interest they pay each year. But what about considering the deduction for a second home? What qualifies for the mortgage interest deduction? And more importantly, can you deduct mortgage interest on a second home? The short answer
Are you considering buying a home with someone else? If so, you’re going to want to know about joint mortgages. A joint mortgage is when two or more people borrow money from a lender to purchase a home. This article will explain everything you need to know about joint mortgages. We’ll cover how they work,
Mortgages can last for 10, 15 or 30 years. Naturally, this creates ongoing responsibilities for both the borrower and the lender. If a mortgage is active, it will need to be continually serviced, and the process often contains a lot of moving parts. While one mortgage lender will want to manage your mortgage loan for
In the U.S., most people own their home for about 13 years, after which they hope to sell the property for a profit.[2] Naturally, you’re probably curious about home appreciation and how much it affects the value of your home today and in the future. Understanding home appreciation is important because it can give you
When it comes to owning a home, some surprises aren’t as welcome as others. If you just found out that your outstanding mortgage balance is more than your home is worth, you have what’s known as an underwater mortgage, also known as an upside-down mortgage. If you have an upside-down mortgage, don’t panic. You have
If you’ve never been to a closing, it pretty much looks like this: You sign a bunch of paperwork, pay your closing costs and get a mortgage. Then the moment you’ve been hotly anticipating arrives, and you finally get the keys to your new home from your real estate agent. Once you’ve cemented your status
You’ve probably seen advertisements promoting 0% APR (annual percentage rate) credit cards or adjustable-rate mortgages (ARMs) with interest rates well below the going rates. These are two examples of teaser rates. A teaser rate (or introductory rate) is a low, temporary credit card or loan interest rate companies use to market their financial products to