In mortgage underwriting, there are three primary considerations – the “three C’s”. Credit, Capacity to repay, and Collateral. Of these, credit is the one people think of most often. The credit category encompasses several different components, but credit scores may be the most meaningful and the most misunderstood. Why are Credit Scores used? Credit scores […]

Mortgage points are fees paid in conjunction with getting a mortgage loan. Each mortgage point is equal to one percent of the mortgage loan amount. As an example, if you take a mortgage loan of $250,ooo, one point would equal $2500. Mortgage points can occur in two forms: origination points and discount points. In both […]

One of the biggest hurdles to attaining home ownership is accumulating funds for a down payment. There are not many loan programs that allow a home purchase without a down payment, but in the right situation, a USDA loan can be just the ticket for home buyers without a stockpile of cash. What is a […]

If you’ve recently purchased a home (or are thinking about purchasing a home) using an FHA loan, you may be asking how soon you can refinance if today’s high interest rates move back down. It’s important to know that there is a restriction on how soon you could refinance a mortgage from one FHA loan […]

The impact of closing costs is a key factor in deciding whether a mortgage refinance is in your best interest. Let’s examine the impact of mortgage refinance closing costs and ways to “minimize the damage” if refinancing is in your future! What are the typical closing costs that apply to refinancing a mortgage? Closing costs […]

Jumbo loans, also known as non conforming loans, are defined as any mortgage with a loan amount greater than the conforming loan limit set annually by the Federal Housing Finance Agency, or FHFA. To most consumers, that doesn’t mean much, so let’s start this post with a quick review of the most common loan types […]

What is Delayed Mortgage Financing? Delayed financing (or more technically, a “delayed financing exception”) is the term used when a homeowner arranges conventional mortgage financing after having acquired property within the prior six months without any mortgage financing initially in place. The most common example of delayed financing is an all-cash purchase transaction where the […]

No closing cost mortgages first appeared when mortgage interest rates began declining from double-digit levels in the late 1980s. Since then, they have become one of the most popular options for home buyers, as well as for existing homeowners looking to refinance. Even so, many people still don’t understand how no-closing-cost mortgages work or the […]

A mortgage rate lock is a way of booking or protecting your loan interest rate against fluctuations for a given period, usually 10 to 60 days. In other words, you strike a deal with your mortgage lender to process your loan at a fixed interest rate even if the rates go up. Most lenders who […]

Closing costs can run into thousands of dollars and are often needed upfront to finalize a home purchase or refinance deal. The down payment alone can empty your life savings, meaning you’ll have nothing left to cover the closing fees. Luckily, you could agree with the seller to pay the closing fees, or your lender […]