16 Oct 2024
By noelkelman

Understanding the Financial Power of Mortgage Points

Home Mortgage, ,
In the world of home financing, mortgage points are a powerful yet often misunderstood tool that can significantly impact your long-term financial outlook. Whether you're purchasing a home or refinancing, understanding how these points work can help you make more informed decisions that align with your financial goals. What Are Mortgage Points? Mortgage points, also known as discount points, are a way for borrowers to reduce the interest rate on their loan by making an upfront payment. Each point typically costs 1% of the total loan amount and can reduce your interest rate by around 0.25%. The idea is simple:…
Read More
11 Oct 2024
By noelkelman

Are You In A Position to Cosign on a Loan?

Home Mortgage, ,
As home prices continue to rise, some buyers may struggle to qualify for a mortgage on their own. In these cases, a mortgage cosigner can be a helpful solution. However, whether you're considering asking someone to cosign or you’re being asked to take on this role, it's essential to understand the responsibilities involved. What Does It Mean to Cosign a Loan?A cosigner agrees to take on the responsibility of paying the mortgage if the borrower cannot. This means their credit will be pulled, and they’ll sign paperwork, but they won’t gain ownership of the property. In many cases, the cosigner…
Read More
10 Oct 2024
By noelkelman

What Is A Home Loan Offset Account And How Does It Work?

Home Mortgage, ,
Looking for ways to reduce the amount of interest you pay on your mortgage and shorten its lifespan? A home loan offset account might be the solution. This financial tool allows you to reduce the interest on your mortgage by using the balance in a linked account to offset your loan amount. Let’s explore how it works and how you can benefit from it. What Is a Home Loan Offset Account? A home loan offset account is a transactional bank account linked to your mortgage. The balance in this account is deducted from the outstanding loan amount when calculating the…
Read More
01 Oct 2024
By noelkelman

How Much Equity Can You Borrow Today?

Home Mortgage, ,
Your home equity represents one of your most valuable assets. When it comes to borrowing against that equity, many homeowners question how much can they borrow. Understanding the amount of equity you can tap into today is essential, especially if you're considering a home equity loan or line of credit (HELOC) for major expenses like home improvements, debt consolidation, or other financial needs. What is Home Equity? Home equity is the difference between your home's current market value and the outstanding balance on your mortgage. As you pay down your mortgage and your property’s value increases, your equity grows. The…
Read More
20 Sep 2024
By noelkelman

Understanding Hidden and Non-Hidden Mortgage Fees

Home Mortgage, ,
When navigating the mortgage process, understanding the various fees involved is crucial for accurate financial planning. Mortgages come with a range of fees, some of which are clearly outlined and others that may not be immediately obvious. We will explore both hidden and non-hidden mortgage fees, providing insights into how they impact the total cost of your loan. Non-Hidden Mortgage Fees Non-hidden fees are those that are clearly outlined in your loan agreement and are typically part of the initial cost of securing a mortgage. These fees are transparent and essential for completing the mortgage process. Origination Fee: Description: This…
Read More
06 Sep 2024
By noelkelman

In A World of Homeowners’ Associations (HOAs)

Home Mortgage, ,
With the current shortage in housing inventory, more buyers are considering condominiums and townhomes as viable options. Most of these properties are part of a homeowners' association (HOA), which plays a crucial role in maintaining the community. Understanding what an HOA entails can help you make an informed decision before purchasing your next home. Here’s what you need to know: 1. Mandatory Membership When you buy a home that's part of an HOA, membership isn't optional—it's mandatory. Along with membership comes the responsibility of paying HOA fees, which may be billed monthly or annually. These fees typically cover the upkeep…
Read More
29 Aug 2024
By noelkelman

The Difference Between Mortgage and Rent

Home Mortgage, ,
When deciding between renting and buying a home, it's essential to understand the key differences between a mortgage and rent. Each option has its own set of benefits and drawbacks, and knowing these can help you make a more informed decision about your living situation and financial future. 1. Ownership vs. Tenure The most significant difference between a mortgage and rent is ownership. When you take out a mortgage, you are buying a property and will eventually own it once the loan is paid off. On the other hand, renting means you are paying for the right to live in…
Read More
23 Jul 2024
By noelkelman

The Importance of Employment History in Mortgage Approval and How Job Changes Impact Your Chances

Home Mortgage, ,
When you're applying for a mortgage, lenders scrutinize several aspects of your financial life to determine your eligibility. One crucial factor that can significantly influence the outcome is your employment history. Consistent and stable employment demonstrates to lenders that you have a reliable income stream, which reduces their risk in lending you money. However, job changes or gaps in employment can complicate the approval process. Let’s explore how your employment history affects mortgage approval and offer some solutions to mitigate potential issues. Understanding the Importance of Employment History Lenders look at your employment history to gauge your income stability. Typically,…
Read More