What is an 80-10-10 Loan?

Private mortgage insurance, or PMI, is one expense that most homeowners would rather live without. While you can ask your lender to cancel PMI once you’ve accumulated 20% equity in your home, that could take a while. So, to sidestep PMI, many borrowers have decided to take out an 80-10-10 loan -- effectively taking out two mortgages at once in order to avoid mortgage insurance altogether.

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APR: Annual Percentage Rate in Regards to Home Loans

Unfortunately, when you get a home loan, you pay for more than just the interest rate each month. This is because there are other fees and charges involved in the mortgage process. The APR (annual percentage rate) of the loan reflects these charges, and is a broader measure of the cost of borrowing money to purchase a home.

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Is a VA loan Better Than a Conventional Loan?

If you’re a veteran or surviving spouse who qualifies for a VA loan, you might be wondering if it’s really the most cost-effective way to buy a home. Since VA loans do have a wide variety of benefits, most people would say yes. But, in reality, the truth can be more complex; while VA loans are often the best option for eligible borrowers, they aren’t always the smartest choice. Keep reading to learn when to use a VA loan and when to stick to a conventional mortgage, and why.

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Low First Time Home Buyer Down Payment Options

Down Payments can be a sore subject for most home buyers. Getting a mortgage requires borrowers to meet many different criteria already, and having to fork out cold, hard cash on top of all of that is the icing on the proverbial home loan cake. This is specially true of first time home buyers. Even so, there are a few ways to escape the worst of down payment woes.

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Are Interest Rates on Mortgages Negotiable?

Due to the expense of mortgage interest, it only makes sense that you would want to do everything in your power to pay a lower interest rate. But how? Oddly enough, you could first try by asking! Negotiating with your lender to reduce your potential interest won’t work in every situation; but it can pay to know when and why it might work -- and what you can do to swing the results a little more in your direction.

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What Are the Least Expensive States to Get a Home Loan?

When it comes to getting a mortgage, some states are simply more expensive than others. And, while you might not want to move to a completely different state simply to get a better interest rate, if you’re considering making a big move (and buying a home in your new home state), it doesn’t hurt to know which states are more affordable than others.

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Will Buying a Home in Foreclosure Reduce Neighborhood Home Values?

One of the best ways to find a home selling for well under its market price is to try to buy a home that’s in foreclosure. While buying a home in foreclosure may be able to get you a fantastic deal, it can also come with some serious risks and considerations. One of the most important things to consider is how homes in foreclosure may reduce neighborhood home values.

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Which States Use Judicial Foreclosure? Which Use Power of Sale?

When it comes to home foreclosures, some states allow lenders to sell a home without going through the court system using a provision in a mortgage called “power of sale.” States which don’t allow power of sale force lenders to attempt a judicial foreclosure in order to repossess and eventually sell the property.

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How Does a Loan Modification Work?

If you’ve fallen behind on your mortgage payments -- or you think you’re about to, you could be in a sticky situation. You want to keep your home and avoid defaulting (or contributing to default) on your mortgage, but you’re not sure what to do. One potential solution may be a loan modification program, in which your lender amends the terms of your home loan in order to make it easier for you to pay them back.

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How Does Rent-To-Own Work?

Rent-to-own is a rental agreement in which a property is leased, yet part of the money paid weekly or monthly goes to owning the property after a certain amount of equity has been accumulated. Rent-to-own is different from a regular lease agreement, in that the renter can buy the property at any time during the agreement (in a traditional lease agreement the renter has no such right).

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When Should You Refinance a Home?

When you refinance a home, you replace your mortgage with a new home loan with different terms. Many people decide to refinance to get better terms -- and, while there are a variety of refinancing options, if you like your mortgage, you probably don’t need to refinance.

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