Category: Intro to Mortgages

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

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?
Post

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 convert their home equity into cash. Unlike other home loans, a reverse mortgage does not require monthly payments toward the mortgage itself. Although, the...

How Much Money Should You Put Down?
Post

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...

Your Credit Score, Your Mortgage, and You
Post

Your Credit Score, Your Mortgage, and You

If you’re looking to buy a home, chances are you’re going to need to take out a mortgage to finance it. Having a great credit score will provide you with better mortgage options, but what happens after you acquire a mortgage? Like any other finance option, a mortgage will have an effect on your credit...

All About Annual Percentage Rates
Post

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
Post

Navigating Closing Costs

Taking on the home buying process 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,...

Improve Your Credit Score in 3 Easy Steps
Post

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...

Refinancing Your Current Mortgage
Post

Refinancing Your Current Mortgage

What is Refinancing? Refinancing is the process of paying off your original mortgage and replacing it with a new one. Your financial situation now may be different from what it was when your first mortgage was originated. Because you’ve already obtained a prior mortgage, refinancing tends to be a much smoother process with far less...

Home Buying Help: What is Escrow?
Post

Home Buying Help: What is Escrow?

Buying a home is often the biggest purchase you make in your life. With all that money on the line, buyers and sellers AND lenders need a safe and secure way to make the transaction. In order to make sure the home sale and mortgage funds transfer take place properly, your lender will open an...