Refinancing your home loan can save you a lot of money in the long run. However, there are some things to be aware of. In this article, I'm going to unpack what you need to know about refinancing your home so you can get started right away.
Buying a new house is an exciting process but one big thing stands between you and the home of your dreams — a down payment. If you haven’t been able to save enough for a down payment, don’t cross homeownership off your to-do list just yet. It is possible to purchase a home without a down payment and finally say goodbye to rent bills for good.
With today’s historic low rates, many people are thinking about refinancing their mortgages and lowering their monthly interest expense. But is it the right time for you? Homeowners refinance for many different reasons, including changes in their financial situation and long-term goals. While refinancing might be a good idea for some people, it doesn’t mean that it’s the right time for everyone.
If you’ve been paying a mortgage for some time now and would like to get more favorable loan terms, then you may want to consider refinancing your mortgage. What does this mean exactly?
To first-time home buyers, the mortgage application process may seem like a whole new world, with different terms and rules to learn, and so many decisions to make. Home buyers not selling a home tend to have smaller down payments, and less-established credit histories. On the other hand, they may qualify for government programs to help them get into a home.
Amid all the chaos of the past year, there is a silver lining for borrowers: Near record-low interest rates.
For those looking to refinance their mortgage there are a lot of lenders to choose from and a number of factors to consider. Each lender has their own unique features as a well as certain strengths and weaknesses. This article compares three of the bigger lenders in this space to help provide you with a comparison in one spot.
Shopping for a mortgage can be stressful. It’s hard to wrap your head around the various loan types, terms and lenders. It’s time to get down to basics - starting with the loan term. Lots of homebuyers opt for a 30-year fixed mortgage, which allows you to pay back your loan over the course of 30 years at a stable interest rate. Explore these 30-year mortgage lenders and find your perfect fit.
The time has finally come. You’ve worked hard, you’ve saved up some money and you’re finally ready to put down some roots. It’s time for you to realize your dreams of becoming a homeowner.
So, you’re in the market for a house? You’ve probably been reading up on all there is to know about taking out a mortgage. The basics are pretty straightforward: once you put in a down payment, a mortgage loan covers the remaining cost of a home, which you’ll need to pay back over x number of years.
You’ve narrowed your search down to a short list of lenders, or perhaps you’ve even been pre-qualified for a mortgage. The next part is beginning your formal mortgage application—but before you do that, it’s important to make sure you’ve prepared the right questions to ask your lender. Here are the 10 questions to ask your mortgage lender to get you started:
Thanks to secondary loans like home equity loans, you can use your home equity to help your kids buy into the property market.
COVID-19 has changed the way we do business. Purchases and transactions that used to require in-person interactions have been replaced with simple online processes that can be completed from home. The mortgage industry has been making such adjustments as well, and in-person interactions are becoming less and less necessary when closing on home loans. Here’s what you need to know.
HELs and PLUS loans are just 2 of the ways parents can borrow the money needed to put their children through college. Compare the pros and cons and application process to learn which one is best for you.
As mortgage lenders are raising the bar on their requirements for borrowers, getting a mortgage becomes harder and harder. Now is the time for homebuyers and those looking to refinance to be smarter about shopping for a new loan.
Own a home and in need of a loan? One of the most convenient ways to secure the large amount of cash you need to fund that renovation, medical bill, or college tuition is to take out a second mortgage on your home.
If you are an armed forces veteran and are planning to apply for a mortgage on a new home or refinance an existing loan, you might be eligible to secure favorable terms from your lender.
Mortgage rates are the lowest they’ve been since they started tracking them in 1971!
VA loans make purchasing a first home or getting a second mortgage easier for those currently serving in the armed forces, reservists, veterans, and their spouses. If you are one of those individuals, a VA backed mortgage may be your option. These top lenders can make your VA loan easy.
If you own a property, the value of that property minus the outstanding mortgage is known as equity. With a home equity loan (HEL), you put that equity down as collateral in order to borrow money.
A jumbo mortgage is exactly what is sounds like: A huge loan to buy a house. But “jumbo” is not just in the eye of the beholder; rather, a loan is considered jumbo if it reaches specific amounts delineated by the Federal Housing Finance Agency, amounts that are subject to change each year.
Mortgage rates hit all-time lows after the Federal Reserve dramatically slashed the benchmark interest rate in March 2020. What’s more, rates will probably go even lower if, as expected, the Fed keeps cutting rates. This poses an interesting question for home buyers and owners: purchase/refinance now or sit it out in the hope of getting a better deal later?
If you’re a homeowner, one way to convert some of that equity into actual cash is with a cash-out refinance.
Times change, so why shouldn’t your mortgage? Mortgage refinancing (sometimes referred to as taking out a second mortgage) can help you save money, get cash in your pocket, lower your monthly payments, shorten your loan term and more! Learn more about mortgage refinancing and get the facts before you decide if it’s the right move for you.
FHA mortgage loans are an attractive option for first-time homebuyers. If you’re looking for your first home and don’t have 20% of the home purchase price for a conventional loan down payment, FHA loans backed by the U.S. government can offer between 3.5% and 10% down payments.
If you want to buy a new home, but have a low credit rating or don’t have a lot of cash, you may consider applying for a Federal Government-backed loan. FHA Loan helps borrowers to secure mortgages from authorized lenders for as low as a 3.5% down payment.
The more you understand about your home and the mortgage you pay, the easier it will be to sort through your finances and have realistic expectations for your current situation.
Bad credit may seem like it stands between you and a new home purchase. Fortunately, there are ways to get a mortgage even with bad credit.
When purchasing a home, a mortgage is almost always an inevitability. To ensure the best outcome, it’s important to plan ahead and make a decision that meets your financial and personal needs.
Applying for a mortgage involves a lot of confusing numbers, but it's actually the words around those numbers that you should be focused on. Learning and understanding common mortgage terms can make the application process a lot easier.
The mortgage market is thriving thanks to record low rates. But what should you do? Refinance your mortgage, go into forbearance, or maybe renovate your home? We gathered four leading personal finance and mortgage professionals to give us some tips.
We gathered four leading on personal finance professionals to discuss the state of the economy, how it affects American households and what you can do to keep your head above water during this high tide
Traditionally, people take out mortgages at the local banks where they already have an account or through a local mortgage broker that has access to many lenders and competitive rates. However, the internet has taken mortgage shopping to a whole new level and more people are taking advantage of this convenient option.
Mortgage rates are little numbers that are a big deal for anyone looking to purchase or refinance a home. Interest rates are a percentage of the overall loan you take out, so a higher or lower rate will quickly add up to figures in the tens of thousands of dollars range. This is why people search for the lowest rates possible when comparing loan services.
If you have a) a mortgage and b) some spare cash, it might be tempting to use the cash to pay off your mortgage early. After all, who wouldn’t want to remove or reduce their debt burden? In some cases, early repayment could be a great move, but in other cases you may be better off investing your money elsewhere.
Although the popular image of millennials is of long-term renters who shy away from buying a property, recent market surveys show that this isn’t the case. In September 2017, a report by Zillow real estate showed that 18-35-year-olds are now the largest group of buyers in the US.
When it comes to mortgages, lenders generally let you choose the repayment term but not the frequency of payments. Most mortgage lenders offer a choice of 15-year, 20-year, or 30-year loan terms, and some even offer 10 years. But almost all lenders lock their borrowers into monthly payments without presenting alternative options.
More and more people in the US self-employed, whether freelancers, entrepreneurs, or small business owners. The advantages of being self-employed are many, including the freedom to choose your hours, flexibility in planning your work hours, and the excitement of being your own boss. But, one of the disadvantages is that it can be harder to get a mortgage when you’re self-employed.
Almost everybody will face the question at some stage in their lives of whether to rent or buy a property. We all need somewhere to live, and while some people take a mortgage and buy a property straight after moving out of their parents’ place, many others rent for years before eventually buying their first home.
The Home Affordable Refinance Program, commonly referred to as HARP or the Obama Refinance Program, is a federal government-backed refinance program for underwater homeowners. The term “underwater” refers to a situation in which a homeowner has negative equity, meaning the amount you owe on your home loan exceeds the home’s value.
Unless you're one of the lucky few that can purchase a home for cash, you're likely to need some kind of a loan to realize your dream of home ownership. Broadly, a mortgage refers to the specific type of loan that’s used for home purchase. There are many types of mortgage terms you’ll want to know for a variety of circumstances, though many people are looking for conventional home loans.
With interest rates low, now might be a good time to consider refinancing your mortgage. Before agreeing to a new deal at the lowest rate, it is worth calculating whether you can save more with a no-closing-cost refinance.
About 10% of Americans are self-employed as small business owners, entrepreneurs, or freelancers. You probably know about the many advantages of being self-employed over being a salaried employee, including being your own boss and getting to set your own hours. On the flipside, it can be harder to get a mortgage when you’re self-employed.
Your mortgage has been approved, you’ve made your down payment and paid all closing costs, and you’re ready to move into your new home. But your biggest cost is still ahead of you: your monthly mortgage payments. So, what exactly are these payments, and what can you do to make sure they cost you as little as possible?
The American mortgage industry is competitive, with around 12,000 institutions offering home loans at last count. With so much choice, it can be hard to know where to begin your mortgage comparison. Even seemingly small differences in rates and fees can have an impact on your monthly payments or how much you’ll pay over the duration of the home loan.
Times have changed in the world of mortgages. Having less than perfect credit is no longer a big red “X” against you when applying for a mortgage. These days, mortgage lenders prefer to look at the bigger picture. The right lender can still give you competitive rates, great terms and a seamless process.
The bright lights of the city or the wide, open spaces of the suburbs? It’s one of the biggest dilemmas faced by first-time home buyers. This guide breaks down the main advantages and disadvantages between buying in an urban or a suburban location.
Refinancing can be an easy way to afford large expenses like home renovations or college, to lower your interest rates (and therefore payments) or to change your loan terms. It does cost money, so be sure to read up on the expenses you can expect from refinancing.
If you believe you’ve been ‘redlined’ because of your race, religion, age, or sex, there are a number of ways you can deal with it. Contact your lender or local law enforcement and get the mortgage you deserve.
If you’re retired or semi-retired, own your own home, and are looking for extra income to fund a home renovation, medical costs, or other significant expenses, you should become familiar with the term “reverse mortgage.”
Some good news to brighten the day of prospective homebuyers: you’re more likely to be approved for a mortgage than ever before. Total denial rates fell to 9.8% in 2018, the lowest point since the federal government started collecting data under the Home Mortgage Disclosure Act (HMDA).
What does pre-approval mean when you’re looking to buy a home? Understand how it can help you and how to apply for pre-approval, which can give you an idea how much of a mortgage you will qualify for when it’s time to make an offer on your dream home.
LendingTree’s Home Valuation Tool helps you make an informed decision for when it’s a good time to sell, or hold onto, you home. Learn about your home equity value and how it can serve you, such as bselling or refinancing. Use this tool to optimize your equity.
Buying a home for the first time can involve a lot of unfamiliar numbers and terms. Here’s what you need to know about payments, parts of a mortgage, fixed and adjustable terms and common mortgage mistakes.
The dream of buying a house is one that many can relate to. For many of us, saving the money for a down payment can seem like the most difficult part of realizing this dream, but there are other hurdles out there for minority groups.
When shopping around for a mortgage, is it recommended to start your search with a marketplace or by going straight to a direct lender? Put this to the test with a direct comparison between LendingTree, one of the biggest online lending marketplaces for finding low mortgage rates, and Quicken Loans, one of the country’s most popular direct lenders.
Many millennials dream of buying their own home, but feel held back by their student loan debt. Although student loan debt is a burden, it doesn’t need to stop you from getting the best mortgage for you.
Buying a house isn’t only the biggest financial decision most people make - it’s also the most personal. There is no one-size-fits-all house, especially when you factor in budget, mortgage offers, location, and all the red lines and deal-breakers that buyers tend to have.
As you shop for a mortgage, it’s important to understand what each option means for you and your budget. The top mortgage lenders offer a range of different products. Picking the right one can save you money in the long run.
For millions of Americans, buying a home or refinancing an existing mortgage is about to get easier. Here's some background about the current mortgage market, the Federal Reserve rate changes, and the steps you can take to gain from falling housing interest rates.
We began 2020 in a fairly healthy economy—stock market prices were high and unemployment rates were low. The COVID crisis derailed financial security for millions of millennials and Gen Zers in a short span of time.
Buying a house is an exciting time, but it isn’t a stress-free process. Part of the process is getting approved for a mortgage to help pay for the home. My wife and I recently went through this experience when we were moving from Florida to Indiana.
Here is proof that even the darkest clouds have a silver lining. As humanity faces its greatest challenge this century, one small upshot is that borrowing costs will fall.
US home prices have risen 7% in the past year, yet it’s cheaper to buy now than at certain points in the last 12 months. How could this possibly be the case? Because of lower interest rates. While house prices are on the way up, interest rates are, surprisingly, on the way down—and home buyers are reaping the rewards.
Applying for a term loan can be difficult and tedious, not to mention all the different eligibility criteria. Applying for a mortgage? Be aware of the debt-to-income limit. Business loan? Let’s hope you’re making more than the minimum monthly revenue. Personal loan? Get ready to reveal your annual income.
Most homeowners have heard of home equity loans and cash-out refinance, but neither of these is the most popular product when it comes to home equity borrowing. That title goes to home equity lines of credit (HELOCs), which account for almost half of home equity borrowing.