Category: Mortgage
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Your Mortgage and the Law: An Overview
A mortgage loan is an ordinary part of financing today’s home purchase. It transfers a lien — a legal claim on a piece of real estate — to the lender, to secure the home loan. This lien is there to ensure the repayment of the loan. It’s an age-old concept. As explained by H. W. Chaplin…
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We Compare Streaming TV Services Before Subscribing. What About Our Mortgages?
Homes are pricey. Mortgage rates are up. Borrowers are concerned, and mortgage companies have good reasons to work hard for new customers’ business. So, isn’t it time borrowers researched our mortgages before signing up? Yet so few of us do. Zillow® says this could be costing homeowners hundreds of dollars each month. Let’s unpack this.
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The Best Conventional Mortgage: Fannie Mae or Freddie Mac?
Fannie Mae and Freddie Mac are the well-known conventional home mortgage companies. They’re classified as government-sponsored enterprises — GSEs. Both Fannie Mae and Freddie Mac are creatures of Congress. Both are investors in the mortgage market. Both are in the business of offering guarantees to banks and brokers nationwide. And both, as they exist today,…
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I Think My Mortgage Is Falling Through
What Should I Do Now? When the mortgage company rep says your credit check went well and your loan application is pre-approved, it’s a great day. You can go out into the world knowing just how much house you can buy. You can make offers a seller will take seriously. As hopeful buyers are sometimes…
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Thinking About an Adjustable-Rate Mortgage in 2022?
Consider the Risk Even though mortgage interest rates are still (historically speaking) quite low, they’re headed back up. On April 14, 2022, Freddie Mac rang the alarm on its Mortgage Rates page: This week, mortgage rates averaged five percent for the first time in over a decade. As Americans contend with historically high inflation, the…
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As Mortgage Interest Rates Nudge 4%, There’s a New Rush to Buy
Fear of Missing Out? Higher mortgage rates can be daunting for many buyers. And here they come. The silver lining? As interest rates begin to rise, this frenzied real estate market could start to level off. But first, it looks like a last-minute rush is on as people anticipate steadily rising rates throughout 2022. Let’s…
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Can a Home in a Living Trust Be Refinanced?
On Trust Property In a Time of Low Mortgage Rates A living trust is a revocable trust. And a revocable trust is a trust you can change — which means you can refinance. That said, your lender must be on board. Let’s take a brief look at how this plays out.
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We Know It. We Denounce It. So Why Does Bias in Lending Persist?
Black homeowners have long faced extra obstacles when buying their homes. And in the turbulence of 2020, barriers to Black homeownership rose yet again. When the mortgage lenders tightened their approval criteria, it turns out that more minority applicants were turned away. What’s more, Black applicants who receive loans are still paying more in interest…
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How to Take Someone Off the Mortgage
What’s the plan when your spouse or co-borrower needs to come off the mortgage? Will you refinance, keep a modified version of the loan, or sell the home to pay the loan off? Here’s a quick Q&A to explore the possibilities.
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After You’re Gone, Does Your Mortgage Live On?
You might be wondering about that house or condo you’ve left in your will. Often, after a homeowner passes on, the real property is sold from the estate to pay off debts. But maybe you have a relative who would like to have and keep your home. For the sake of exploring the question, say…
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Buying or Refinancing? Mortgage Servicing Matters.
Be sure you’re dealing with a company that takes service seriously. Various companies are involved in one mortgage. The home buyer’s journey might begin with a local mortgage expert. Then, the mortgage expert helps the buyer find a lender. Once the loan is approved, a borrower gets a mortgage servicer, too. Some lenders service their…
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Interest Rates on the Rise? Assumable Mortgages Never Looked Better.
Congrats to the 2020 and early 2021 buyers who locked in fabulously low rates! As the economy gradually pulls itself out from under the pandemic, people are talking about interest rates rising in 2021 and beyond. While rates will fluctuate, the overall trajectory is on an upward climb. Yet some new mortgage holders will keep…
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How a Sudden Disaster Impacts Your Mortgage Loan
As co-insured parties, you and your mortgage lender both have a stake in the value and condition of your home. Your stake in your property value is obvious. But the lender also has a vested interest. Your home’s value is the collateral for the loan. So, catastrophic damage raises serious questions about the status of…
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Mortgage Approvals: The New Landscape for Post-Pandemic Home Buyers
It’s now obvious: the mortgage lending industry is forever changed. Here’s what happened — and what’s likely to come next. The Year of Minimum-Risk Lending Back in April 2020, we noted that mortgage lenders were getting tougher on loan applicants. Perversely, the borrowers who stood to benefit most from the low interest rates that led…
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The Partial Release of Mortgage: When You’re Only Selling Part of Your Property
What if a potential buyer is interested in acquiring a part of your property, and you’re willing to sell? If you’re a land owner with full rights in a piece of property, you may legally sell any part of it — unless bound by an agreement to the contrary. If a parcel is mortgaged, an…
