Posts

Renting? You’re Still Paying a Mortgage, Just Someone Else’s

If you’re still renting, you might think that you’re not paying a mortgage. Technically that may be correct but in the end the mortgage on your rental unit is ultimately being paid for by you. When real estate investors evaluate a potential purchase, one of the first things they’ll be looking for is whether or […]

How to (effectively) Buy a Fourplex and Live Mortgage Free

This is an interesting concept and at first glance it might seem a bit misleading. The obvious way to buy a fourplex and live mortgage free is to pay cash for it. But many don’t take that route because it can put a dent in a bank account and tied up into a relatively non-liquid […]

How to Get a Divorced Spouse Off the Mortgage

When two people decide it’s time to buy a home together, in today’s environment and in many markets it takes two incomes in order to qualify for the home they really want. That means both will appear on the same mortgage application. Unfortunately the divorce rate in this country means anywhere from 40 to 50 […]

Paying Off Credit Card Balances vs. Closing the Accounts

While mortgage lenders review a loan application, affordability is determined. Affordability can sometimes be a moving target as different loan programs may have different acceptable levels of debt. There are two primary types of debt, installment and revolving. Installment debt is where one loan is taken out and paid back over time with regular monthly […]

Pros and Cons of Financing New vs. Existing Homes

Believe it or not but there are some differences between financing new construction and an existing property. Yes, they’re certainly both financing options for a residential mortgage but there are some key differences and you might be surprised at the available options. Let’s first look at the most common type of mortgage, that’s the one […]

Short Term? Long Term? Why Your Loan Choice Matters

Deciding on which home loan to take is usually a matter of choosing an interest rate. But, especially for those who have never financed a home before, there are many more things to decide on besides the rate. Sure, the rate is important, but you might be surprised at the array of loan choices available […]

Selling Loans: Why It’s a Good Thing

What many borrowers don’t realize is how mortgage lenders “fund” a home loan. Funding essentially means providing the money needed to create a new mortgage. It’s probably easy to think that when someone applies for a mortgage, the lender reaches back into its bank vault and sends the money over to the settlement agent. But […]

Closing Costs: What Your Lender Can Control and What Your Lender Can’t

When consumers start talking about mortgage loans, the two most important topics are almost always the prevailing interest rate for the loan program they’ve chosen and closing costs. Yes, there certainly are other considerations but in most every instance these two items get the most attention, and rightly so. After all, the interest rate on […]

Debt Ratios: The Difference Between Owning vs. Leasing a Car

Lenders today have multiple rules they must follow in order to be in compliance with federal and state regulations. One of those regulations can be found in the “Ability to Repay,” or ATR rule issued by the Consumer Financial Protection Bureau, or CFPB, back in 2014. Affordability was inserted after regulators discovered more and more […]

It Might be the Best Time to Refinance. Seriously.

Let’s say that around the first of this month you checked mortgage rates to see if a refinance was in your future. Rates have been on a steady decline so far this year so it’s no wonder that you did make a quick check. And rates have fallen to the point in early March that […]