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Mortgage Affordability

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When Should You Move Out of Your Parents’ Home?

There’s a transition most young adults must face at some point in their lives: moving out of their parents’ home. And while you may end up back there for a stretch – if you fall on hard times or for another reason – it’s still generally not a great long-term arrangement. You may be wondering...

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Short Refinance: What It Is and How It Works

Maybe circumstances beyond your control have made it hard to meet all your financial obligations. Maybe you’ve defaulted on your mortgage payments and because of an underwater mortgage, you can’t sell your home or secure a standard refinance. If you’re in this situation, you may feel like your options for avoiding foreclosure are severely limited....

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Can You Get a Mortgage or Refinance a Loan Without a Job?

The employment scene looks much different today than it did a few years ago. Between ongoing pandemic-related disruptions, the Great Resignation and the rise of gig work, more people than ever are wondering if they can get a mortgage or refinance their home loan without a full-time job. Yes, getting a mortgage or refinancing your...

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A MoneyTips Guide To Home Loans For People With Disabilities

Buying a home is often the most significant purchase you’ll make and one of the tenets of the American Dream. Though some people might assume that a disability can make it difficult or impossible to get a home loan, individuals with disabilities have plenty of options for getting a mortgage.  Even if your sole source...

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Dry Closing: What It Is and How It Differs From Wet Funding

When a deal is signed in real estate, it usually means everything has been agreed to and completed. That’s the rule – but every rule has its exception. In the case of closing on a home, the exception is a dry closing. A dry closing happens when the seller and buyer agree to complete a...

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Mortgage Subordination, Explained

If tapping into your home’s equity is in your future, so is a whole lot of paperwork. And whether you’re taking out a home equity loan or a home equity line of credit (HELOC) (both are types of second mortgages or junior liens), you may be presented with a subordination agreement to sign at closing....

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Silent Second Mortgage: What To Know

For most first-time home buyers, coming up with the money for a down payment is a major hurdle to homeownership. Sometimes you need to get creative while you’re trying to figure out how to cobble together enough cash for a down payment that’s 10% or 20% of a home’s purchase price.  There are lots of...

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What Is a Mortgage Teaser Rate?

You’ve probably seen advertisements promoting 0% APR (annual percentage rate) credit cards or adjustable-rate mortgages (ARMs) with interest rates well below the going rates. These are two examples of teaser rates.  A teaser rate (or introductory rate) is a low, temporary credit card or loan interest rate companies use to market their financial products to...

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What Is Buying Down an Interest Rate and Is It Right for You?

When comparing different mortgages, one of the most important variables you will need to consider is the interest rate. Over a 30-year mortgage, a single percentage point change in your interest rate could cost or save you thousands of dollars. Many people assume that whatever interest rate their lender offers them is an interest rate...

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What Does Being “House Poor” Mean and What To Do About It

Home equity in a primary residence is the largest source of wealth for families across the nation, according to the National Association of Home Builders. As a result, many people see homeownership as a sure path to building their nest egg – and in many cases, this can be true.  But the heart is not...

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What Are Lender Credits and Are They Worth It?

Imagine this: Your search for a home is over, and you’re ready to embark on your home buying adventure. You’re preapproved (or approved) for a mortgage loan, and you’ve got a purchase agreement in your eager hands. You put the contract down long enough to calculate the final cost of buying the home – and...

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What Is PITI for Your Mortgage?

You’ve saved the money, and you’ve found a house. And now it’s finally happening for you. As part of the exciting process of buying your first home, you apply to the bank for mortgage preapproval. In evaluating your request, the lender tells you they need to figure out if you can afford the monthly costs...

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