A variable-rate mortgage also called an Adjustable Rate Mortgage, ARM is a loan in which the interest rate paid on the outstanding balance varies according to a specific benchmark. Typically, the … [Read more...]
PITI: 4 Components of a Mortgage Payment
PITI is an acronym for the four components of a mortgage payment: Principal, Interest, Taxes, and Insurance. When evaluating a homebuyer's maximum mortgage loan eligibility, lenders consider these … [Read more...]
What is Mortgage Escrow, and How Does it Work?
During the homebuying process, mortgage lenders may use the term "escrow" from time to time. Lenders can use the word "escrow" in several different contexts. However, they typically refer to escrow as … [Read more...]
Adjustable-Rate Mortgage
Defining Adjustable-Rate Mortgages (ARMs) An adjustable-rate mortgage (ARM) refers to any mortgage loan where the interest rate changes over the loan's lifetime. This type of mortgage loan is also … [Read more...]
4 Ways to Remove Private Mortgage Insurance
When purchasing a home, many homeowners end up with Private Mortgage Insurance (PMI) added to their mortgage. While this is frustrating and adds to monthly costs, it is usually unavoidable under the … [Read more...]
5 Mortgage Myths Debunked
Many mortgage myths are floating around, partly because mortgages can be complex and confusing. There are many different types of mortgages available to different borrowers around the U.S., depending … [Read more...]
Top Things to Avoid Before Applying for a Mortgage
If you plan to buy a home in the upcoming months, there are some things you should avoid that could negatively impact your FICO score. This is important because a lower FICO score could result in … [Read more...]
When and How to Pay Off Your Mortgage Early
Most people choose to get a mortgage when buying a home. Over time, though, the interest expense with the mortgage causes homeowners to consider paying their home loan off early to save money. So … [Read more...]
Buy or Refinance a Home, Roll Renovation Costs into an FHA 203(k) Home Loan
An FHA 203(k) home loan is backed by the U.S. Federal Housing Administration and allows a borrower to take out a loan for two purposes; home improvements and home purchases, if the home will be the … [Read more...]
Freddie Mac’s HomeOne Mortgage: 3% Down, Fewer Restrictions
Finding the right mortgage product can be difficult, especially if you’re a first-time buyer. In fact, it’s easy to become disillusioned with the idea of buying a property, or thinking you’ll never be … [Read more...]