What Is Home Equity?
What Is Home Equity? Home equity is the value of your home that you actually own. It’s the part of your property that you’ve paid off in comparison to what you still owe. For example, if your home’s current market value is $300,000 and your remaining mortgage balance is $150,000, your home equity is $150,000. […]
What Is A Conventional Loan?
Understanding Conventional Loans A conventional loan is much like the trusty bicycle you rode to school — straightforward, reliable, and no fancy bells or whistles. In mortgage terms, it’s a loan that’s not guaranteed or insured by the federal government, which sets it apart from types such as FHA, VA, or USDA loans. It’s typically […]
Cash Out Refinance Guide
What is Cash-Out Refinancing? A cash-out refinance is like a money wizard. It turns your house into a piggy bank! It’s a kind of loan that lets you take the money you’ve built up in your home, known as equity, and puts it right into your pocket. Equity is the difference between how much your […]
HELOC vs. Cash Out Refinance
When looking into HELOC vs. cash-out refinance, homeowners have two powerful tools at their disposal to tap into the equity they’ve built up in their homes. Equity, the portion of your property that you truly own, can serve as a financial springboard for various purposes – from consolidating debt to financing major renovations. Understanding the […]
HELOC vs. Home Equity Loan
What’s The Difference Between HELOCS And Home Equity Loans? A HELOC (Home Equity Line of Credit) and a home equity loan both allow you to borrow against your home’s equity, but they work differently. A home equity loan gives you a lump sum of money at once with a fixed interest rate, meaning you’ll have […]
What Is A Home Equity Loan?
What is a Home Equity Loan? Simply put, a Home Equity Loan is a type of loan wherein you borrow against the equity in your home. Equity is the difference between the current market value of your house and the amount you owe on your mortgage. A Home Equity Loan allows you to take advantage […]
What Is A HELOC?
In the world of financing, one term that comes up often is a Home Equity Line of Credit, or more commonly known as a HELOC. Whether you’re considering leveraging your home’s equity to consolidate debt, fund home improvements, or cover unexpected expenses, understanding how a HELOC works is key to utilizing this financial tool effectively. […]
Second Mortgage: What They Are and How They Work
Everyone has heard the term second mortgage, but what does it really mean? Whether you’re considering it as an option to consolidate debt, pay for home improvements, or cover a child’s college tuition, understanding how a second mortgage works is key to making informed financial decisions. Key Takeaways What Is A Second Mortgage? A second […]
What is a 15 Year Fixed Mortgage?
What Is A 15-Year Fixed Mortgage? A 15-year fixed mortgage is a financing option for purchasing a home. Under this mortgage structure, the homeowner agrees to repay the borrowed amount, plus interest, over a period of 15 years. This mortgage type typically offers lower interest rates compared to its 30-year counterpart, attracting homeowners who wish […]
What is a 30 Year Fixed Rate Mortgage
What Is A 30-Year Fixed Mortgage? A 30-year fixed mortgage is a home loan that maintains a constant interest rate and monthly principal payment over a 30-year period. It’s the most popular mortgage product among American homeowners and homebuyers. The fixed aspect of the loan implies that the interest rate doesn’t change during the entire […]
Is A Mortgage Secured or Unsecured?
When you’re buying a home, you will likely need a mortgage. But is a mortgage a secured or an unsecured debt? This article will explain the difference between these two types of debt, confirm which category a mortgage falls into, and discuss the impact on interest rates. Secured vs. Unsecured Debt In the sphere of […]
What is a Mortgage Loan Origination Fee
Simply put, a Mortgage Loan Origination Fee is a fee that a lender charges the borrower (you) for processing their mortgage application. But it’s more than just an ‘administration fee’ — it’s a payment that compensates the lender for their extensive work in evaluating and processing your mortgage. The tasks that these fees cover are […]
Comparing APR vs. Interest Rate
When you’re looking to buy a home, you’ll come across terms like APR and interest rate. These can be confusing, but they’re essential for understanding how much your loan will cost you. In this article, we’ll explain what these terms mean, how they’re different, and why they matter when you’re getting a mortgage. What Is […]
What Assets Are Allowed For A Mortgage
When applying for a mortgage, lenders typically require borrowers to provide documentation of their assets. These assets play a crucial role in the mortgage approval process, as they demonstrate your financial stability and ability to afford the loan. In this article, we’ll explore the various types of assets allowed in mortgages, why it’s important to […]
What Is A Mortgage Rate?
A mortgage rate is the interest charged on the loan you take out to buy a home. It’s one of the most critical factors in determining the cost of your home loan because it affects your monthly payments and how much you’ll pay over the life of your loan. Essentially, the mortgage rate is the […]