Sep
25
Quarter Two The U.S. Census Bureau released its latest quarterly residential vacancies and homeownership. Currently, the national homeownership rate is 63.7%, up 0.8 percentage points. While it has increased from the last year (62.9%), it is not statistically significant from the last quarter of 2017 (63.6%). In April 2016, Census Bureau...
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Sep
25
There's no official equation to calculate a monthly cost of living. However, there are some unofficial indexes offered by different organizations which provide cost of living information. It's important to note that the cost of living in the U.S. will vary from one location to another. It not only depends...
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Sep
25
The first-time homebuyer tax credit is a special tax credit program meant for a specific group of homebuyers: those who bought a home during the 2008 financial crisis. This tax credit is not widely available and has a variety of requirements that dictate who can receive it. How To Qualify...
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Sep
22
Fixed rate mortgages are mortgage loans with interest rates that do not fluctuate throughout the entirety of the loan. Fixed rate mortgages are the most common and preferred mortgage type, but that does not necessarily mean they are the best choice for everyone. Pros of a fixed rate mortgage Predictability....
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Sep
22
As fun and exciting as purchasing a house can be, it can take a toll on new homeowners. When someone first moves into a house, whether it be a friend, family member, or new neighbor, you'll want to help them celebrate this exciting event. While choosing a housewarming gift can...
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Sep
22
What is a ‘Tax Credit’? A tax credit is an amount of money taxpayers can subtract from their taxes owed to the government. Tax credit values depend on the nature of the credit. Different types of tax credits are granted to individuals or businesses in certain industries or locations. Tax...
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Sep
21
What is a right of rescission? A right of rescission is the legal right which gives a borrower the right to cancel a line of credit or home equity with a new lender. Additionally, it gives the right to cancel a refinance transaction made with a different lender other than...
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Sep
21
For most people, having a million dollars is a thing of fantasy and imagination. When we think of millionaires, we think of people who are geniuses and worked incredibly hard for their entire lives to get to the point they're at. However, in this new age of internet and social...
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Sep
21
What is HELOC? A Home Equity Line Of Credit, or HELOC, is a line of credit extended to a homeowner that uses the borrower’s home as collateral. It allows you to borrow up to a certain amount, rather than a set dollar amount. Based on household income and credit report,...
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Sep
20
When applying for a loan, you might get a little overwhelmed with all the different loan types. Two loan types that are often left unexplained are known as recourse loans and non-recourse loans. What are recourse & non-recourse loans? In both recourse and non-recourse loans, the lender is allowed to...
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Sep
20
An Overview of Composting For thousands of years, humans have been composting in efforts to improve our soil, food, and planet. While it continues to grow in popularity, the thought of household composting grows as well. Composting is the natural breakdown of organic matter. During the breakdown process, the nutrients...
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Sep
20
If your mortgage application gets denied, do not worry. There are still many opportunities to pursue a future mortgage. Mortgage lenders deny every 1 in 2 applications received. After the application denial, discuss with your lender the reasons behind the denial. Despite the tight lending environment, don't give up on...
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Sep
19
Several first-time home buyers struggle with a down payment when looking to purchase a home. It's not easy for everyone to save up 20% of a home's sale price. This can leave home buyers dreaming of owning a home instead of holding the keys in their hands. Fortunately, those dreams...
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Sep
19
The inside of your house being humid can be very uncomfortable but that's not the only reason you should be concerned about it. A more humid home is the ideal environment for harmful microbes and dust mites. Mold also thrives in moist, humid places and since mold can not only...
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Sep
19
There are a lot of reasons to refinance your mortgage, whether to get a more attractive interest rate or to change the length of your loan. So how long should you or do you have to wait to refinance after getting a mortgage? When Can I Refinance? As long...
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Sep
18
While trying to obtain a loan for your new home, your mortgage lender will require a home appraisal. The appraisal's an unbiased estimate of the home's value and ensures the amount requested for the loan is appropriate. They will need this before lending, for the simple reason of knowing the property...
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Sep
18
A deck is a special feature on a home that gives homeowners an outdoor space to entertain or relax. There's nothing like enjoying the beautiful outdoors with family and friends. However, the deck you may have now or are looking to add might not work for what you want it...
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Sep
18
Define: assigned loan Definition: An assigned loan is the transfer of ownership from one person to another.
Sep
18
If you are looking to sell your home in the near future, now might be the best time for you to put your home on the market. Right now, the housing market's demand for homes is at a new high and fewer homes are available for sale. High demand and low supply...
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Sep
15
Define: dwelling Definition: A dwelling is a residential structure that contains one to four units, whether or not that structure is attached to real property.
Sep
15
Define: non-conforming loan Definition: A non-conforming loan is a loan that does not conform to Federal National Mortgage Association (FNMA) or Federal Home Loan Mortgage Corporation (FHLMC) guidelines. Jumbo loans are non-conforming.
Sep
15
Define: non-traditional mortgage Definition: A non-traditional mortgage is a residential mortgage loan product that allows borrowers to defer repayment of principal and, sometimes interest. They include products such as "interest only" mortgages where a borrower pays no loan principal for the first few years of a loan, and "payment option" adjustable-rate mortgages...
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Sep
15
One of the most important decisions when buying a house is how you will pay your insurance and property taxes each year. Depending on the type of loan you have received, an escrow account may be the right decision for you. What is an escrow payment? An escrow payment is...
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Sep
15
Define: 2 1 buydown mortgage Definition: A 2 1 buydown mortgage is a type of mortgage with a set of two initial primary interest rates. The interest rate for the first year is 2 percent lower than the permanent interest rate and 1 percent lower the second year. The initial interest...
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Sep
15
Define: underwriting Definition: Underwriting is the process used to determine loan approval. It involves evaluating the property and the borrower's credit and ability to pay the mortgage.
Sep
15
Define: tolerance Definition: Tolerance is the degree to which state closing costs can vary between the Loan Estimate and the Closing Disclosure.
Sep
15
Define: third party providers Definition: Third party providers are settlement providers other than the lender including the title company, hazard insurance company, credit report providers, appraisers, surveyors, and pest inspectors.
Sep
15
Define: subprime mortgage Definition: A subprime mortgage is a loan that is meant to be offered to prospective borrowers with impaired credit records. A higher interest rate is intended to compensate the lender for accepting the greater risk in lending to these borrowers.
Sep
15
Define: subordination Definition: Subordination is the act of lowering the priority of a mortgage lien.
Sep
15
Define: subordinate loans Definition: Subordinate loans are any mortgage priority than the first mortgage. This includes a second mortgage at the time of purchase or an equity line of credit.
Sep
15
Define: settlement Definition: A settlement is the process of completing a loan transaction at which time the mortgage documents are signed and then recorded, funds are disbursed, and the property is transferred to the buyer (if applicable). This is also called closing or escrow in different jurisdictions.
Sep
15
Define: secondary market Definition: The secondary market is the market in which mortgage loan and mortgage-backed securities are bought and sold.
Sep
15
Define: residential mortgage loans Definition: A residential mortgage loan is a mortgage on the consumer's dwelling to finance the acquisition or initial construction of that dwelling.
Sep
15
Define: referral Definition: A referral is any oral or written action directed by a person in order to influence the selection of a settlement provider paid for by that consumer.
Sep
15
Define: rate lock agreement Definition: A rate lock agreement is an agreement in which an interest rate is locked in or guaranteed for a specific time period prior to closing.
Sep
15
Define: qualified mortgage Definition: A qualified mortgage is a category of loans that have certain, more stable features that help make it more likely a borrower will be able to afford a mortgage loan. Interest-only loans, negatively amortizing loans, balloon loans, and term longer than 30 years aren't allowed.
Sep
15
Define: primary mortgage market Definition: Primary mortgage market is the entities involved in originating a mortgage loan including mortgage brokers and lenders.
Sep
15
Define: prepaids Definition: Prepaid expenses may include property taxes, homeowner's insurance, and mortgage interest that will accrue before the first mortgage payment is due.
Sep
15
Define: premium pricing Definition: Premium pricing is a credit from a lender for the interest the interest rate chosen. Premium pricing may be used to pay a borrower's actual closing costs and/or prepaid items.
Sep
15
Define: net worth Definition: Net worth is assets minus liabilities.
Sep
15
Define: mortgage lender Definition: A mortgage lender is a lender providing funds for a mortgage. They can also manage financial information review financial and credit information review, the property and loan application process through closing.
Sep
15
Define: mortgage investors Definition: Mortgage investors are individuals or companies that purchase mortgages after the closing.
Sep
15
Define: mortgage broker Definition: A mortgage broker is a person that renders origination services and serves as the intermediary between a borrower and a lender in a transaction involving a federally related mortgage loan.
Sep
15
Define: leverage Definition: Leverage is the use of borrowed funds to increase yield.
Sep
15
Define: lender credits Definition: Lender credits a credit that a lender may offer a borrower to help with closing costs. The lender usually increased the loan amount or charges a higher interest rate to cover these costs.
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