Category: Intro to Mortgages

Why was my Mortgage Application Denied?
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Why was my Mortgage Application Denied?

It’s fairly common for home loan applications to be denied. According to the Federal Bureau of Consumer Financial Protection, 1 out of every 9 mortgage applications was denied during 2018. That’s a lot of denials. So let’s take a look at why so many would be home buyers are having trouble getting approved. Examples of...

Why is Home Equity Important?
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Why is Home Equity Important?

We all know that building home equity is good, but why? How is home equity helpful? Before we get into why you want to build equity in your home, we need to learn what home equity is. What is Home Equity In short, home equity is the amount of money that you owe on your...

Why Get a USDA Loan?
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Why Get a USDA Loan?

Believe it or not, but the United States Department of Agriculture actually offers a mortgage product. Initiated back in 1935, this loan program was originally created to help populate the more rural areas of the United States during the Great Depression. Fast forward to 2019, the USDA loan is still a great way to help...

The Difference Between Private Mortgage Insurance and a Mortgage Insurance Premium
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The Difference Between Private Mortgage Insurance and a Mortgage Insurance Premium

If you’re new to the home buying process, chances are you’re confused about the difference between private mortgage insurance (PMI) and mortgage insurance premium (MIP). Well we’re here to set the record straight for you! Private Mortgage Insurance PMI is an insurance policy designed to protect mortgage lenders from borrowers defaulting on their mortgage payments....

How Does a Reverse Mortgage Work?
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How Does a Reverse Mortgage Work?

Also known as a home equity conversion mortgage (HECM), a reverse mortgage is a home loan program for homeowners 62 years of age or older. The loan allows the homeowner to tap into their home equity. Unlike other home loans, a reverse mortgage does not require monthly payments toward the mortgage itself. Although, the borrower...

How Much Money Should You Put Down?
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How Much Money Should You Put Down?

Although most lenders recommend a 20% down payment, it’s not necessarily required. There are options for home buyers to put down much less, but it may not necessarily be the best decision for you. So, how much cash should you be putting down? Down payment definition In case you’re unsure, let’s start with what a...

All About Annual Percentage Rates
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All About Annual Percentage Rates

If you’re interested in obtaining a mortgage, you’ve probably heard the term APR. But if you’re a novice to the mortgage process, you probably don’t know what an APR is. An annual percentage rate (APR) is the amount you’ll pay in interest plus extra fees. Essentially, this amounts to the annual price for borrowing money...

Navigating Closing Costs
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Navigating Closing Costs

Deciding to buy a home is a monumental task. Between the paperwork, phone calls, and constant stress, it can be easy to forget about the cost of closing on a home. And more often than not, buyers are surprised by how expensive closing costs can be. But before you can prepare for closing costs, you...

Improve Your Credit Score in 3 Easy Steps
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Improve Your Credit Score in 3 Easy Steps

Staying on top of your finances is easier said than done. Budgeting, reducing spending on luxury items and overall monitoring of expenses is needed to maintain financial stability. A credit score is direct proof of your capability to pay off your debt through credit. 6 months is the usual amount of time it takes to...