Even with falling interest rates, a refinance may not be the best move. A mortgage refinance is when you take out a new home loan to pay off and replace your old loan. Common reasons to refinance are to lower the monthly interest rate, lower the mortgage payment, or to borrow additional money. When mortgage […]
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Escrow Accounts
What is an escrow account? An escrow account, sometimes called an impound account, is set up by your mortgage lender to pay certain property-related expenses. The money that goes into the account comes from a portion of your monthly mortgage payment. An escrow account helps you pay these expenses because you send money through your […]
Mortgage Help for Homeowners Impacted by the Coronavirus
The FHFA announces new mortgage forbearance guidelines Fannie Mae, Freddie Mac and the Federal Home Loan Banks are taking steps to help people who have been impacted by the coronavirus. If your ability to pay your mortgage has been impacted by the coronavirus (COVID-19), and your loan is owned by Fannie Mae or Freddie Mac, […]
Private Mortgage Insurance
What is private mortgage insurance? Private mortgage insurance, also called PMI, is a type of mortgage insurance you might be required to pay for if you have a conventional loan (see below). Like other kinds of mortgage insurance, PMI protects the lender — not you — if you stop making payments on your loan. PMI […]
Single-Family Loan Limits Increase for 2020
The Federal Housing Finance Agency (FHFA) announced on December 3, 2019 that the 2020 county loan limits for its single-family mortgage insurance programs would increase in most areas across the country. Effective January 1, 2020, the new loan limits for a single family residence are: Conforming loan limit: $510,400 (up from $484,350) FHA loan limit: […]
The Truth About “No Closing Cost” Mortgages
We’ve all seen or heard the headlines “No points! No fees!” or “No closing costs!” used in advertising, so let’s put this very complex subject into the simplest possible terms. The truth about “no closing cost” mortgages is that they don’t exist. Not really. All real estate transactions, whether a purchase or refinance, involve costs […]
Reverse Mortgage Purchase Loans
You may already be familiar with a traditional reverse mortgage, but did you know that a reverse mortgage can also be used to buy a home? It’s called a Home Equity Conversion Mortgage (HECM) for purchase, and is sometimes referred to as a reverse mortgage purchase loan. What is a reverse mortgage purchase? An HECM […]
What Not To Do Before Your Home Loan Closes
Sometimes the smartest people do the dumbest things. So, you’ve found the perfect home, and you’ve been pre-approved for your new mortgage. Your offer was accepted, the home inspection passed, and your loan officer locked you in at an awesome rate. You likely think it’s a done deal. Um, not quite. You won’t officially be […]
