Adjustable rate mortgage loans, or ARMs, have been around for a long, long time, even longer than a traditional fixed rate product. Adjustable rate loans provide lenders with interest rates that move with the markets ensuring a margin payment each month to the bank. If rates go up, the bank still profits because an ARM […]
The Department of Housing and Urban Development, or HUD, offers the Home Equity Conversion Mortgage (HECM) through the FHA program. Pronounced HECK-um, this loan is often referred to as a reverse mortgage and is somewhat counterintuitive. A traditional mortgage is what is a “forward” mortgage which means the loan balance gets lower as each payment […]
If you’re thinking about refinancing your mortgage you’re not alone. A cash-out refinance can be a smart move for a lot of homeowners. Yes, interest rates appear to have bottomed out and have risen slightly over their historic lows. Yet millions of other homeowners can still benefit by refinancing for more than just the rate. […]
Post-Recession Home Buying Tips Home buying tips can change along with our economy. As the so-called Great Recession falls further and further in our rearview mirror real estate has returned. This recovery has been gradual rather than “spiking” and the home equity that was lost post-2008 has returned. Homeowners are now able to sell their […]
In today’s mortgage marketplace, there are two primary types of mortgage loans available- conventional and government-backed. Conventional loans include those underwritten to Fannie Mae and Freddie Mac standards while the government-backed group features VA, FHA and USDA mortgages. This is a far cry from say 10 years ago when a host of mortgage programs were […]
The HomeStyle loan is a mortgage program introduced by Fannie Mae designed to help borrowers buy a home as well as finance home improvements and remodeling costs into one loan. It’s very similar in nature to the FHA 203(k) loan yet much more flexible. Buyers who want to renovate a home or make home improvements […]
The VA home loan was originally introduced as part of the Servicemen’s Readjustment Act of 1944. Congress wanted to help soldiers returning from WWII to more easily assimilate back into civilian life and provide funds to start a business, go to college or to buy and finance a home. As it relates to the home […]
Knowing the difference between a retail bank and a mortgage broker could save you money. Years and years ago when someone wanted money to buy a home, they would go to their bank. The bank would evaluate the application, go to its vault of money and transfer it to the borrower’s account to be used […]
Depending on your age and the decade you grew up in, “conventional wisdom” on the topic of renting vs. buying a home could have varied tremendously. If for example you grew up in the 90s, you may have been brought up to believe that renting is just throwing money down a drain, and buying is […]
When it comes to the topic of renting vs. buying a home, one thing is likely—if you ask around, most of your friends and family are bound to have pretty strong opinions on it. You may know people who say, “Don’t take out a mortgage; you will just get trapped and find yourself underwater in […]
