How to Get a Low Interest Rate on a HELOC
The amount of available home equity has recently hit all-time highs, meaning now is a great time to tap into your home’s value with a home equity line of credit (HELOC). These are revolving accounts that allow you to draw out money for anything from home improvement to college tuition to debt consolidation. Of course, just like with your primary mortgage, finding the best rate on a HELOC is essential. Here are some tips for scoring a great interest rate: Check Your Equity The more equity you have in your home, the better your odds are of being approved and offered a good rate. Yo...
October 17th, 2018 | Interest Rates, Home Equity, How to Get a Low Interest Rate on a HELOC
How to Qualify for a Mortgage When Your Income Isn’t Steady
Mortgage lenders love to see borrowers with consistent, steady incomes. But not all borrowers have jobs that send a paycheck every two weeks. Of course there are plenty of self-employed entrepreneurs, but there are also people who are depend on tips for income, those who get paid by contract and also individuals who work per diem or on call. All of these situations can make it very challenging to provide proof of the steady income that mortgage lenders adore. Fortunately, those with more creative incomes can still qualify for a home loan and it is getting easier. For example, in recen...
October 10th, 2018 | Purchasing a Home, Conventional Loans, How to Qualify for a Mortgage When Your Income Isn’t Steady
6 Facts about Private Mortgage Insurance
Private mortgage insurance (PMI) is a type of insurance that most borrowers are required to pay if they are not making a down payment of 20% or more. While you may think you understand the concept of insurance, if you have never bought a house before, you may not realize that PMI is different than most types of insurance. Here are five PMI facts every buyer should know: 1. PMI protects the lender, not the buyer. Most insurance is something you buy to protect yourself – your car, your home, your health, etc. PMI is something you pay for but it actually protects the lender, not ...
October 3rd, 2018 | Conventional Loans, 6 Facts about Private Mortgage Insurance
Should I Roll My Student Loans into My Mortgage?
Americans owe more today in student loans than ever before and student debt is continuing to rise. As these borrowers start into their careers and become homeowners, they may have the opportunity to consolidate their student loan debts with their home loan. If this sounds intriguing to you, here’s what you need to know before talking to your lender: How Does Consolidation Work? If you have enough equity in your home, you can refinance to pull cash out and pay off all your student loans. This means that both debts will now all be paid off together through your monthly mortgage bill....
September 26th, 2018 | Mortgage, Debt Consolidation , Should I Roll My Student Loans into My Mortgage?
Should I Make a Biweekly Mortgage Payment?
Many homeowners are eager to pay off or pay down their mortgages in order to save themselves money in interest charges. Many lenders have even anticipated this situation by offering buyers a bi-weekly payment program. What is a Bi-Weekly Mortgage Payment? Most mortgages are paid once a month, making 12 payments every year. With a bi-weekly payment schedule, the monthly mortgage amount is split into two and paid every two weeks instead. Since there are 52 weeks in a year, this results in 26 half- payments annually, totaling 13 whole payments. This means borrowers basically pay one extra m...
September 19th, 2018 | First-time Homebuyers, Purchasing a Home, Mortgage, Should I Make a Biweekly Mortgage Payment?
What is a Piggyback Mortgage?
In order to achieve the dream of homeownership, many buyers look for creative financing to aid them in their quest. One such option is a piggyback mortgage, which actually involves taking out two separate loans to make homeownership more affordable. These loans can be very helpful, but borrowers must know the risks in order to be succesful. Piggyback Definition Here’s how a piggyback mortgage works. You take out a traditional home loan for 80% of the home purchase price. You put down 10% of your own cash as a downpayment. Then in order to cover the remaining 10%, you take out a sec...
September 12th, 2018 | First-time Homebuyers, Conventional Loans, Preapproval, Purchasing a Home, What is a Piggyback Mortgage?