Mortgage interest rates are on the rise. Last week ended with a 30-year fixed-rate mortgage averaged at 5.11%. That’s up from 2.97% last year at this time. The increase impacts everyone.
We’ve created a loan comparison chart for your convenience. This chart compares some of the most common requirements and the differences between five popular loan programs.
Not every home is turnkey ready. In fact, you may be looking for a house that needs work because of your budget or because you want to make it your own with renovations and remodeling. If you’re in the market for a fixer-upper, there are loans that can help you purchase the property and pay for the improvements. These loans are commonly called rehab or renovation loans.
When it’s a seller’s market, houses sometimes move before you can get out the door to see them. If you’re lucky enough to find a home you want, there’s a good chance yours will be one of many offers. So, how do you win a bidding war for that home you really want?
You want to buy a home and need a mortgage. Where do you start? You start by applying for a loan which sets in motion the preapproval process. Here’s what you need to know about obtaining preapproval.
You’re ready to be a homeowner. Do you know just how much cash you need to buy that home? The total cash needed upfront to close your mortgage is known as “cash to close.” Once you’re in the mortgage process, your lender will give you that number, but before you start the process, it’s good to understand what cash expenses are involved in purchasing a home.
After you’ve taken out a mortgage, there may come a time when you want to consider refinancing your home. A simple way to understand a refinance mortgage is to think of it as replacing your old mortgage with a new one that has more favorable terms or advantages for you.
If you purchase a home with a conventional loan and your down payment is less than 20% of the purchase price, you will pay PMI (private mortgage insurance) as part of the mortgage payment. PMI allows you to obtain a conventional loan with a lower down payment. This insurance fee is added to your monthly mortgage payment.
PMI is private mortgage insurance. It’s a monthly insurance payment tacked onto your mortgage when you’re unable to make a down payment of at least 20%. Though you may not like having to pay PMI, there are two good things about it: 1) It gives you the opportunity to obtain a mortgage with a smaller down payment. 2) It doesn’t last forever.
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