Mortgage

Mortgage discount points are upfront fees paid at closing to lower your interest rate—one discount point equals 100 basis points, or 1% of the loan amount—typically reducing your rate by 0.25%. They make financial sense if you plan to stay in the home long enough to reach the breakeven point, often around five years. This […]

Are you thinking of using your VA loan benefit to buy a home—but unsure where to start or what VA Loan mistakes to avoid? Whether you’re a first-time homebuyer, a seasoned real estate investor, or a professional helping military clients, applying for a VA mortgage comes with its own unique rules and common missteps. This

A home appraisal directly affects your Loan-to-Value (LTV) ratio—calculated using the formula (Loan Amount ÷ Appraised Value) × 100—which influences loan approval, interest rates, and mortgage insurance. If the appraisal is lower than expected, your LTV rises, potentially resulting in worse terms or denial. formula used to calculate Loan-to-Value ratio Managing appraisals smartly can protect

A good LTV ratio is typically 80% or lower, helping borrowers avoid private mortgage insurance and secure better loan terms. Key strategies to lower your loan-to-value ratio before applying for a mortgage include making a larger down payment, choosing a less expensive home, increasing property value through improvements, or using gift funds. Understanding what a

A state-by-state comparison of appraisal and assessment practices reveals key differences affecting property taxes, reassessment frequency, and valuation methods. Appraisals estimate market value for sales and loans, while assessments determine taxable value. States like California cap assessed increases, while Texas and Florida reassess annually with exemptions. Understanding these variations helps buyers, investors, and agents make

When facing an underwater mortgage, your options when facing an underwater mortgage include assessing damage, rebuilding credit, and creating a financial safety net. If you walk away from your mortgage, expect severe credit score drops, public records on your report for seven years, and significant waiting periods before qualifying for new loans. Alternatives like loan

Want to pay off your mortgage faster without straining your budget? Simple strategies like biweekly payments, rounding up, and using lump sums can reduce your loan term and save thousands in interest. Understanding how amortization impacts early vs. late mortgage payments reveals that extra payments made early significantly cut interest costs. Options like refinancing or

Understanding appraisal gaps and how they affect offers is critical for buyers and real estate professionals alike. This guide explains how to prepare for a low home appraisal before making an offer by researching comps, analyzing market trends, planning for potential shortfalls, and using appraisal contingencies strategically. Whether you’re a first-time buyer or seasoned investor,

Short sale and deed-in-lieu explained: Both are foreclosure alternatives for underwater homeowners who owe more than their home’s value. A short sale lets you sell the home for less than owed with lender approval, while a deed-in-lieu involves handing the home back to the lender. This guide compares both options to help homeowners, investors, and

When considering a mortgage, understanding alienation clauses in your mortgage is crucial, especially regarding due-on-sale clauses and assumable mortgages. A due-on-sale clause allows lenders to demand full loan repayment upon property transfer, protecting their interests. Conversely, an assumable mortgage lets a buyer take over the seller’s existing loan, often at a lower interest rate, with