Believe it or not, construction loans are actually more complicated than mortgage loans—and this is because they come with higher risks for the lender, but also for the borrower. Most of the risks stem from the fact that repayment begins only once the project has been … [Read more...]
Does an Interest Only Mortgage Really Work for the First-Time Home Buyer?
An interest-only mortgage is a type of home loan with a term during which the borrower, or mortgagor, only has to pay a generally constant amount that goes toward covering the interest. The principal of the loan remains untouched throughout the duration of the term. However, … [Read more...]
What Changes to the Closing Process Will the TILA-RESPA Integrated Disclosure Bring?
As we’ve previously explained, on October 3, 2015, the HUD-1, GFE (Good Faith Estimate), and TILA (Truth in Lending Act) went away. They’re being replaced by the Closing Disclosure and the Loan Estimate. The latter, which has been alternatively dubbed a ‘know before you owe’ … [Read more...]
5 FAQs about the October 3, 2015 TILA-RESPA Changes
On October 3, 2015, new Real Estate Settlement Procedures Act (RESPA) rules will come in effect, with great impact on many realtor activities. The United States’ Consumer Financial Protection Bureau (CFPB) is aggressively enforcing RESPA and TILA (The Truth in Lending Act), … [Read more...]
Fixed Mortgage Length: 15 or 30 Years?
When considering mortgage loans, most prospective borrowers know there are two basic types available on today’s market: fixed rate mortgages and ARMs (short for adjustable rate mortgages). Both types of mortgage loans come with specific subtypes, classified based on their … [Read more...]
Minimum Down Payment for Conventional Loan versus FHA-Insured Loan
The MDPFCL (or ‘minimum down payment for conventional loan’, in full) is a major issue for potential home owners interested in applying for a loan. This especially applies to first-time home buyers, who are often still burdened by student debt, as well as to any household in … [Read more...]
Everything You Need to Know about the Jumbo Mortgage
What is a jumbo loan? As its name suggests, a jumbo mortgage is a mortgage that’s larger than the typical home loan, more often referred to as a conventional conforming loan. What does this mean, specifically? It entails that, even though jumbo loan credit quality … [Read more...]
New 3 Percent Down Mortgage Loans for 2015
As anyone who’s ever been remotely interested in purchasing a home knows, a down payment is a form of securing a loan with money you’ve previously saved. The 3 percent down mortgage is typically the lowest down payment on the US market, with FHA loans requiring a 3.5 percent … [Read more...]
VA Loans and VA Funding Fees: All You Need to Know
In the niche of mortgage loans, a VA loan is a type of credit guaranteed by the Department of Veteran Affairs (VA), available only to U.S. veterans or their surviving spouses. The terms of this type of mortgage loan are usually better than the loans available to the general … [Read more...]
Understanding Second Mortgage Rates: Should You Opt for a Home Equity Loan?
Oftentimes, homeowners choose lower second mortgage rates by refinancing their initial home loan with a home equity loan. Aside from paying for a refinance, home equity loans can be used to cover for numerous big ticket expenses, such as unforeseen medical costs, university … [Read more...]