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31 May 2024
By noelkelman

The Difference Between Prime and Subprime Mortgages

Mortgage Application, ,
Understanding the difference between prime and subprime mortgages is essential for anyone entering the world of home financing. Prime mortgages are tailored for individuals with exemplary credit scores and stable financial profiles, offering them lower interest rates and more favorable loan conditions. Conversely, subprime mortgages are intended for those with lower credit scores or a history of financial setbacks, resulting in higher interest rates and less beneficial terms. Let’s take a look at both. Prime Mortgages You have a stellar credit score, a stable income, and a solid history of paying your bills on time. You’re what lenders call a…
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30 May 2024
By noelkelman

Energy Efficient Mortgage (EEM) Programs – The Green Loan

Home Mortgage, ,
Are you dreaming of owning a home that not only suits your lifestyle but also helps you save on energy bills? Well, it might sound like a dream, but with Energy Efficient Mortgage (EEM) programs, it's entirely within reach. We will discuss the world of EEMs, exploring what they are, how they work, and how they can benefit both homeowners and the environment. What is an Energy Efficient Mortgage (EEM)? An Energy Efficient Mortgage is a home loan that allows homebuyers to finance energy-saving improvements as part of the mortgage and is at times referred to as “The Green Loan”.…
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29 May 2024
By noelkelman

Understanding The Advantages and Risks Of Wraparound Mortgages

Mortgage, ,
These days real estate transactions have become more and more creative with financing solutions that often emerge to meet the diverse needs of buyers and sellers. One such alternative is the wraparound mortgage, a financial instrument that has gotten both praise and caution within the real estate community. Understanding its advantages and risks is crucial for anyone considering this option. What is a Wraparound Mortgage? A wraparound mortgage, also known as an all-inclusive mortgage or simply a "wrap," is a type of secondary financing arrangement where the seller assumes the existing mortgage and creates a new mortgage with terms that…
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28 May 2024
By noelkelman

What’s Ahead For Mortgage Rates This Week – May 28th, 2024

Financial Reports, ,
The Consumer Sentiment Report was the sole important report to take place the prior week, keeping with the trend of the cooling-off period that happens the weeks following the CPI and PPI data releases. Consumer sentiment this time around has come to be slightly below expectations and falling to a 6-month low, marking a great change in overall sentiment towards the clear trend in rising costs in goods and services. It is largely expected that the Federal Reserve, even with the recent improvement in data, will maintain its stance at holding rates at the current position until a later date…
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24 May 2024
By noelkelman

Understanding the Differences Between Construction Loans and Mortgages

Home Mortgages, ,
Construction loans and mortgages are two important tools in the world of real estate financing. They each have specific purposes and come with their own set of rules and requirements. These differences cater to various needs when it comes to buying or building properties. Construction Loan: A construction loan is specifically designed to finance the construction of a new property or significant renovations to an existing property. These loans typically have short terms and are used to cover the costs of labor, materials, and other expenses associated with building or renovating a property. Mortgage: A mortgage, on the other hand,…
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23 May 2024
By noelkelman

Making Mortgage Decisions: Online Lenders vs. Traditional Banks

Mortgage Application, ,
The options for securing a mortgage have expanded beyond the brick-and-mortar banks to include online lenders. With this diversity comes a crucial decision for homebuyers: should you opt for the convenience of online lenders or stick with the familiarity of traditional banks? Let's explore the pros and cons of both options to help you make an informed decision. Online Mortgage Lenders Pros: Convenience: One of the most significant advantages of online mortgage lenders is the convenience they offer. You can apply for a mortgage from the comfort of your home, without the need to visit a physical branch. This is…
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22 May 2024
By noelkelman

Things You Should Understand About Private Mortgage Insurance

Mortgage Tips, ,
Private Mortgage Insurance (PMI) is a sizable expense during the process of buying a home that many overlook until it impacts their financial decisions. Understanding PMI, its purpose, and strategies to manage or eliminate it can save you thousands of dollars over the life of your mortgage. What is PMI? PMI is a type of insurance that protects lenders in case the borrower defaults on their mortgage payments. It's typically required when the borrower's down payment is less than 20% of the home's purchase price. This insurance doesn't benefit the homeowner directly but allows lenders to offer mortgages with lower…
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21 May 2024
By noelkelman

Unlocking Lower Mortgage Rates By Boosting Your Credit Score

Credit Scoring, ,
The interest rate you qualify for when securing a mortgage can make a huge difference in your financial journey. The good news is, that by understanding how credit scores impact mortgage rates and implementing strategic steps to boost your score, you can potentially unlock lower rates and save thousands of dollars over the life of your loan. Lenders use credit scores as one of the primary factors in determining the interest rate they offer you on a mortgage. Generally, the higher your credit score, the lower your interest rate will be. This is because a higher credit score indicates to…
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