When you borrow money from a lender to buy a home, you’ll come across legal and financial jargon that may be unfamiliar to you. One such term is “promissory note,” which will definitely come up if you’re using lender money to finance your home purchase. A promissory note is essentially a legal “IOU” that says […]
For any number of reasons, homeowners may struggle with their mortgage payments. Falling behind on payments or missing payments, though, can lead to what’s called mortgage default. Once this happens, your house can go into foreclosure, and you may lose your home altogether. Below, you’ll find everything you need to know about mortgage default, how […]
What Is Home Equity? As mentioned above, home equity is the amount of your home that you actually own. Specifically, equity is the difference between what your home is worth and what you owe your lender. As you make payments on your mortgage, you reduce your principal – the balance of your loan – and […]
Your home is an investment. Refinancing is one way you can use your home to leverage that investment. There are several reasons you may want to refinance, including getting cash from your home, lowering your payment and shortening your loan term. Let’s look at how refinancing a mortgage works so you know what to […]
What Is A Home Equity Loan? A home equity loan enables you to use the equity you’ve built in your home as collateral to borrow money. Like a primary loan used to buy a house, your home is used as security to protect lenders if you end up defaulting on your loan. Home equity loans […]
If you’re at least 62 and worried about affording your retirement years, a reverse mortgage could be an option.However, this loan is a bit complicated and can come with some drawbacks. It’s important to know how this loan works, how it can help you and whether it’s the right option for your financial situation and […]
When you’re first looking to buy a home, it may seem like there’s an overwhelming number of options. Not only do you have to deal with figuring out what house you want and how much you can afford, but you’ll also need to determine the best loan option for you and who you should work […]
You have a few options when shopping for a mortgage, including a mortgage banker and mortgage broker. Most people confuse the two terms or assume they are the same. Today we’ll focus on what a mortgage banker is to clarify their roles and responsibilities, which can help you to decide if a mortgage banker is […]
The federal funds rate helps the U.S. Federal Reserve influence interest rates and borrowing. It can also be called the fed funds rate, federal interest rate or federal reserve rate. The federal funds rate may also impact the interest rate that you’re charged on your home mortgage or personal loan. Understanding how it works can […]
As you shop around for a mortgage, you become an important part of the primary mortgage market. As a borrower, you can shop around for the best available rate to obtain a mortgage loan from a primary lender. Home buyers are a critical part of a healthy primary mortgage market. Here’s what you need to […]