What Does Cash-to-Close Mean?
Cash-to-close on a home purchase is a term that can be misleading, but it simply refers to the total amount of money you need at closing, including: Your down payment…
The Difference Between PMI and MIP
Mortgage insurance (MIP and PMI) has two purposes—protecting lenders from potential homebuyer defaults and to allow homebuyers to qualify for a mortgage without making a large down payment. Mortgage insurance…
When Should You Refinance Your Mortgage?
As interest rates fluctuate, you may consider refinancing your mortgage to a lower interest rate, shorter loan term, or lower monthly payment. You may want to switch from an adjustable…
Why Are Credit Scores So Important?
Your credit scores are numbers that creditors, landlords, employers, insurers, and others use as shorthand or an educated guess to determine your attitude toward borrowing and how you might repay…
Applying for a Loan? Review Your Credit Report First
Before you apply for a mortgage loan, check your credit reports at AnnualCreditReport.com. This site, by law, allows the three major credit reporting bureaus, Experian, Transunion, and Equifax, to provide…
High vs. Low Interest Rates: Pros & Cons Explained
When interest rates rise, buying a home becomes more expensive, so you may need to tighten your budget. However, there are advantages. For instance, if you have a fixed-rate mortgage,…
What are Federal Home Loan Qualifications?
The “American Dream” of home ownership is supported by federal programs that either insure loans made by lenders (such as FHA, VA, and USDA) or purchase loans from lenders to…
How to Avoid Becoming House-Poor
According to the U.S. Department of Housing and Urban Development (HUD), affordable housing means that you should be paying no more than 30% of your gross income for housing costs, including mortgage…