A GSE home loan is a government-sponsored enterprise home loan. In terms you may relate to – it’s a Freddie Mac or Fannie Mae home loan. These loans are meant to help encourage lenders to lend money to borrowers. It’s an effort to keep stimulating the economy to keep it going. Looking for Current Mortgage Interest Rates? Click Here. Fannie Mae and Freddie Mac are the two largest GSE mortgage providers in the United States today. What do Freddie Mac and Fannie Mae Do? When you get a mortgage, … [Read more...]
Understanding the Arm’s Length Sale
Buying and selling real estate is expensive. In order to ensure that it’s conducted in a fair and practical way, there are certain regulations you must follow. One of them is the arm’s length sale. As the name suggests, you must have a ‘spaced out’ relationship with the seller. In other words, you can’t buy the home from your mom or uncle.Looking for Current Mortgage Interest Rates? Click Here. Why are Non-Arm’s Length Transactions Bad? You may wonder what the harm is in conducting a … [Read more...]
How Long Can a Mortgage Rate be Locked?
The average rate lock is for 30 days. That’s the typical rate lock a lender will offer free of charge. Of course, you can lock your rate for less or more time if needed. If you lock for less than 30 days, you’ll still get it for ‘free.’ If you need more than 30 days, though, expect to pay extension fees. Looking for Current Mortgage Interest Rates? Click Here. You can lock an interest rate for as long as 120 days. Unless you stumble across an interest rate that is unbeatable, though, you … [Read more...]
Calculating Self-Employment Income for a Mortgage
Before you get approved for a mortgage, lenders need to know that you can afford it. If you work for someone and get a W-2, it’s easy for lenders to calculate your income. You can even do it, by just dividing your income by 12 months. But, if you work for yourself, there’s a whole different aspect that comes into play. Looking for Current Mortgage Interest Rates? Click Here. Keep reading to learn how to calculate your self-employment income to see if you may qualify for a mortgage. You Need a … [Read more...]
What’s the Difference Between Fannie Mae, Freddie Mac, and HUD?
When you apply for a mortgage, you may hear names thrown around that include Fannie Mae, Freddie Mac, and HUD. Just what do they mean and how do they affect your mortgage? Keep reading to find out.Looking for Current Mortgage Interest Rates? Click Here. Who are Fannie, Freddie, and HUD? In simple terms, Fannie, Freddie, and HUD are all government agencies that ‘back’ the mortgages lenders write. They don’t do the underwriting or funding of the loans. Instead, they set the guidelines that … [Read more...]
Using a HELOC to Pay off a Mortgage: Pros and Cons
If you have a low mortgage balance, you may want to find a way to lower your payments or decrease the amount of interest you pay. It makes sense, especially if you’ve had the mortgage for a while. You are tired of paying interest and just want to pay your mortgage off as fast as you can. One option is with a HELOC or home equity line of credit.Looking for Current Mortgage Interest Rates? Click Here.A HELOC works a little differently than a traditional mortgage. They typically have lower … [Read more...]
Understanding Non-Recurring Closing Costs
When you apply for a home loan, you’ll receive a Loan Estimate. By law, the lender must send this to you within three business days of applying for the loan. On this document, you’ll see closing costs, some of which are recurring and others that are non-recurring.Looking for Current Mortgage Interest Rates? Click Here.We’ll explore the differences below. What are Non-Recurring Closing Costs? While the names sound complicated, a majority of the closing costs you pay are non-recurring. … [Read more...]
The Top Ways to Choose the Right Mortgage
You are ready to buy a house – congratulations! Before you start, though, you need to do the hard work of finding a mortgage. If this is your first home, you may not even realize how many mortgage programs are available today. It’s more than choosing the right interest rate or even the right term – you have to put all of the pieces together to choose the right loan.Get Matched with a Lender, Click Here. The Type of Loan First, you must choose the right type of loan. The choices … [Read more...]
I’m 3 Months Behind on My Mortgage Payments – What Can I Do?
If you are behind on your mortgage payments, know that you aren’t alone. Five percent of Americans are behind on their mortgage payments. The key is to know what to do in order to make sense of the situation. Ignoring it and hoping it will resolve itself won’t work. Instead, take the following steps.Looking for Current Mortgage Interest Rates? Click Here. Contact Your Lender Always let your lender know what’s going on. Yes, it’s embarrassing, but trust us, they hear the stories every day. … [Read more...]
Can you Deduct HELOC Interest Payments on Your Taxes?
The Tax Cuts and Jobs Act changed the standard deduction for taxpayers. It increased the deduction enough that many people take the standard deduction. If you don’t itemize your deductions, you can’t write off interest on any loan, let alone your HELOC.Get Matched with a Lender, Click Here.Assuming your deductions exceed the standard deduction limit, can you deduct the interest payments on your taxes any longer? The Previous Ruling Prior to the Tax Cuts and Jobs Act, you could deduct … [Read more...]
