If you're shopping for a mortgage, you may have already identified a few things you have to budget for, such as a down payment and closing costs. But if you opt for a conventional mortgage – mortgage loans not backed by a government entity – you might also need to budget for a less well-known expense called private mortgage insurance (PMI). In case you’re worried about … [Read more...] about How to Avoid PMI (Private Mortgage Insurance)
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What is a Jumbo Mortgage? Everything You Need to Know
You’ve found your dream home: perhaps it’s in that ideal neighborhood, has a spacious kitchen, a spa-like bathroom, and a sprawling yard with flawless landscaping. But that perfect match may also come with a hefty price tag. When it comes time to shop for your mortgage, a lender might tell you that you need a jumbo loan. But what does that actually mean? In this … [Read more...] about What is a Jumbo Mortgage? Everything You Need to Know
What is APR (Annual Percentage Rate) And How Does it Impact Homebuying?
You may have heard of the term "annual percentage rate (APR)" but might not understand exactly what it means.
But just like other important mortgage terms like rate lock, it's important to understand APR from top to bottom because it affects how much you pay for your mortgage over the long term.
We'll cover some APR basics to help you understand the answer to … [Read more...] about What is APR (Annual Percentage Rate) And How Does it Impact Homebuying?
Debt-to-Income Ratio: What is it and How is it Used by Lenders?
When you are thinking about buying a house, you're probably envisioning the memories you'll make in your new home, the great family dinners and nights hanging out with friends. Your thoughts may not initially stray into terms like "debt-to-income (DTI) ratio" or "credit score." You will be more familiar with terms like these as you undergo the mortgage process. In this … [Read more...] about Debt-to-Income Ratio: What is it and How is it Used by Lenders?
What is Cash-Out Refinancing and When is it a Good Option?
What would you do with some extra cash in your pocket? Wipe out your credit card debt once and for all? Update your kitchen? Finally finish your basement? Pay off high-interest student loans or personal loans? Refinancing your mortgage with a cash-out refinance means you might get to check off all the boxes on your to-do list or give yourself an infusion of cash for upcoming … [Read more...] about What is Cash-Out Refinancing and When is it a Good Option?
