What Is A Mortgage Insurance Premium? A mortgage insurance premium is a special type of mortgage insurance that is paid on FHA loans. It provides your mortgage lender with some protection in the event that you default on your loan. FHA MIP is beneficial to home buyers because without it, lenders would likely require a […]
What Is Escrow? Escrow is a legal arrangement in which a third party temporarily holds money or property until a particular condition has been met (such as the fulfilment of a purchase agreement). How Does Escrow Work? It’s used in real estate transactions to protect both the buyer and the seller throughout the home buying […]
What Is A Loan Estimate? When you apply for a mortgage, your lender is required to give you a Loan Estimate: a standardized form that gives you important details about the mortgage you’re applying for. The mortgage Loan Estimate includes your estimated interest rate, monthly payment, closing costs and other details. The Loan Estimate has […]
When you buy a house, you pay interest on your home loan. Your lender will determine your interest rate based on your financial situation. Your interest rate will likely be low if you have strong credit, a steady income and minimal debts. If your finances aren’t ideal, you may end up with a higher rate. […]
Buying a Home isn’t just a simple purchase; it’s also a legal transfer of property from one entity to another. Because the legal side of this transaction can be so complex, sometimes it makes sense (or is even required) for home buyers or sellers to enlist an attorney who can look out for their best […]
How Much Does A Home Appraisal Cost (And Who Pays)? A home appraisal can cost anywhere in the $600 – $2,000 range. You’ll pay less for a single family home appraisal than a multifamily home appraisal. Even though most lenders require an appraisal as a condition of a loan closing, the buyer pays for the […]
What Does It Mean To Refinance A House? Refinancing the mortgage on your house means you’re essentially trading in your current mortgage for a newer one – often with a new principal and a different interest rate. Your lender then uses the newer mortgage to pay off the old one, so you’re left with just […]
Why Understanding Your Closing Disclosure Matters If you’re purchasing a new home or refinancing your current loans it’s imperative that you understand all the terms of your loan before you sign on the dotted line. The reason for this is that once you sign, you’re committing to the conditions presented. That means it’s crucial that […]
When buying a house, you pay closing costs and fees to cover the costs of getting the mortgage. Closing costs usually range from around 3% – 6% of the home price. In some cases, you may be able to get the seller to pay for some of these closing costs. These are called seller concessions, […]
What Are Closing Costs On A House? Closing costs are paid at closing for your mortgage. These costs arise through the process of creating your loan. Closing costs cover fees such as those associated with your home appraisal and searches on your home’s title. The specific closing costs you’ll need to pay depend on the […]
