With mortgage rates at an extremely low level, you and your spouse might be considering taking the plunge and buying a home. But what happens when you apply for a mortgage jointly and one credit score is much lower than the other? You’ll find out that you both need to have good credit to get an affordable mortgage rate, and
A second mortgage is a type of home loan that a lender approves in addition to an original mortgage that has not yet been paid in full. Homeowners can use a second mortgage to borrow against the equity they have in their houses, often at lower rates than other types of financing. Essentially, a second mortgage is a lien that’s taken
When you’re just starting out, purchasing your first house can seem like a daunting task. But certain milestones can mean huge changes in how you handle your money. Here are six suggestions to help get your financial life on track. 1. Create a net worth statement To create a snapshot of your current financial situation, look online for helpful worksheets
With mortgage rates hovering at historic lows, many homeowners are rushing to refinance. There’s much to be gained by switching your existing home loan for a new one, and here are three reasons why refinancing now could be a smart move. 1. You could reduce your monthly payment The No. 1 goal when it comes to refinancing your mortgage should
Your mortgage likely will be one of your largest debts during your lifetime. And, depending on your choices, your home can help you build wealth, or destroy your credit and net worth. Fortunately, it doesn’t have to be difficult to make smart choices about home financing. You just need to avoid these seven mortgage mistakes. 1. Borrowing without a generous
In case you’re not familiar with a reverse mortgage, it’s a type of loan that allows homeowners ages 62 and older to leverage the equity in their house. If a homeowner owns their property outright—or has considerable equity to draw from—they can withdraw a portion of the equity as tax-free income without having to repay it until they leave the
In today’s rapidly changing mortgage landscape, it’s easy for myths to circulate. So, here’s the truth behind common mortgage mistruths you may hear today. 1. Everyone qualifies for low-interest rates There’s a lot of talk about record-low mortgage interest rates of late. Most recently, a 30-year fixed-rate mortgage dropped to 2.88 percent for the week of Aug. 6, according to
Even in the best of times, house hunting comes with built-in stressors ranging from mortgage approvals to bidding wars and beyond. But house-hunting during the coronavirus pandemic can change the game entirely. Toward that end, here are five surprising lessons one homebuyer learned while house-hunting during these ongoing difficult times. 1. Don’t expect bargains Early on during the pandemic, some
If you’re thinking about refinancing your mortgage to lower your interest rate, to help shorten your loan term, or to convert equity into cash for any unforeseen expenses, you’ll need to be aware that there also are closing costs to consider. Closing costs are about $5,000, although this varies according to the size of your loan, as well as the state and
Although millions of Americans struggling to make their monthly mortgage payments because of COVID-19 have received relief through the Coronavirus Aid, Relief, and Economic Security Act, mortgage forbearance is only temporary. Set to expire soon, it could leave many struggling homeowners wondering what to do next. Enacted in March, the CARES Act initially granted a 180-day forbearance (or pause in payments)
