Buying a house is a common undertaking for many Americans, but it’s also one of the most complicated — not to mention costly — purchases adults will ever make. It’s important to understand these 10 essential terms so you understand how much house you can afford and make smart decisions when you buy a home. Adjustable-rate mortgage (ARM): A mortgage … Continue reading →

Unlike diamonds, mortgages are not forever. The ultimate goal is to pay them off and own your home free of encumbrances. But there are many good reasons to trade in your original mortgage for a new one along the way. One of the most common reasons to refinance is to move from an adjustable-rate mortgage, or ARM, to a fixed-rate loan. With an ARM, … Continue reading →

A question that often comes up, especially for first time home buyers, is whether to purchase a newly constructed or older home. As you’ll find out in this article, there are pros and cons to each side of the decision. Read on to get a better understanding of which home is right for you. Older home advantages Larger yards and … Continue reading →

Unless you were recently selected as the No. 1 pick in the NFL draft or released a hit album, you probably won’t pay for your new house in cash. Like millions of Americans, you’ll take out a mortgage. Before you begin your housing search, try to get a mortgage preapproval, which is usually good for up to 90 days. After … Continue reading →

The adjustable rate mortgage (ARM) recap. Put simply – an adjustable rate mortgage or ARM is a loan with an interest rate that can change. When the loan begins, the interest rate is fixed. For example, a 5/1 ARM loan has a fixed interest rate for the first five years. After five years, the loan is reviewed and the rate … Continue reading →

How long do I plan on being in this home? Answer this question before you select your mortgage. When you get a mortgage you can choose between an adjustable rate mortgage (ARM) or a fixed rate mortgage. ARMs usually have 1 to 7 year terms while fixed rate mortgages range between 10 and 30 years. If you’re planning on being … Continue reading →

Contrary to what you may think, signing up for a mortgage loan doesn’t mean you’re trapped in that rate or term. If rates change or events arise that prevent you from paying as you had planned, refinancing might be an effective way to change your monthly payments. What does “refinancing” mean to you? Refinancing means paying off your existing mortgage … Continue reading →

Before you dive in and place an offer on a house there are dozens of questions that need to be answered. But to make sure you’re financially ready, here are three big picture questions you should be able to answer. 1) What’s my credit score? Your credit score plays an important role in qualifying for a mortgage loan. Loan officers … Continue reading →

With mortgage rates near historic lows, buying a home may be within your reach. Almost as soon as you start the process, though, the logistics of making the purchase and getting a loan can become overwhelming. Making the right decisions takes preparation. Here are five tips to consider before you start: 1) Know your finances Getting pre-approved for a loan … Continue reading →