How Mortgages Work

Law library

What Is Regulation Z and How Does It Protect You?

If you’re not familiar with Regulation Z, the name might sound ominous (images of a plotting Dr. Evil or Filch tacking magical decrees to the wall), but it’s one of the most successful consumer protection laws in the U.S. Regulation Z, also referred to as the Truth in Lending Act (TILA), established a series of...

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Homeowner documentation

Defeasance Clause: Definition and Overview

Real estate transactions are often chock full of complex terms, complex jargon and complex concepts. Even a question as simple as whether you or not you own your home after closing can result in a not-so-simple answer. (Hint: It depends on which state you live in.)  The answer to the question of ownership may rest...

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Impound Accounts Explained: Why Your Lender Holds Funds

If you’re like most people, you may not fully understand the purpose of an impound account. In short, an “impound account,” also known as an “escrow account,” is a way for your lender to ensure your property taxes and homeowners insurance are paid on time.  The lender is responsible for managing the account, but it’s...

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What Is a Warranty Deed?

If you’re wondering how the government and other people will know your house is actually yours, then you’ll want to understand how deeds work. There are several types of deeds, but the ones you’ll want to seek out are known as warranty deeds because they can help protect you and your rights as a homeowner....

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What Is an eMortgage?

The internet has given us countless innovations over the last several years. And these days, you can buy just about anything online, including your next home. With an eMortgage (also known as an electronic mortgage), borrowers can potentially move through the entire home buying process, including closing, without ever getting off their couch. Given the...

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Mortgage Protection Insurance: What It Is and Why You Might Consider It

A home offers safety and stability for your family and is probably one of the most important investments you’ll ever make. However, premature death or major disability could leave your family at risk. If you’re the primary income earner, your unexpected death could leave your family struggling to come up with mortgage payments. While no...

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What is a Mortgage Float-Down Option?

Once you start considering buying a home, the obvious next step is researching and creating a plan. And you quickly find one phrase that seems to proliferate in your search results like a financial-jargon bacteria: interest rate.  Interest rates are one of the most important aspects of the mortgage process. They can have a huge...

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Title Endorsement: What To Know

Understanding the difference between title insurance and title endorsement is part of buying a home. And whether you’re ready to buy your first home or you’ve done the whole home buying thing before, you’ll need to either learn or refresh your memory of the title insurance and endorsement lingo used by real estate professionals. Humblebrag:...

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Cluttered desk in a yellow room.

How Many Mortgages Can You Have?

Maybe you’ve successfully purchased your first home – and now you’re hooked. You’re determined to grow your real estate investments. That could mean creating a rental portfolio or buying a vacation home (or homes).  Since you managed to get approved for your first mortgage, getting approved for a few more should be straightforward, right? The...

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What Is a Due-on-Sale Clause?

One thing’s for sure, buying a home is an involved undertaking. And if you’re getting a mortgage or deed of trust to purchase a new home, it gets even more involved. There are all kinds of legal aspects to be aware of, including the due-on-sale clause that most mortgages contain.  A due-on-sale clause is a...

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What Is the Average Mortgage Length?

In the market for a mortgage? The most common mortgage type and length (aka term) you’ll find as you shop around is the 30-year fixed-rate mortgage.  Even though the 30-year fixed-rate mortgage is the most popular loan out there, most homeowners don’t stay in their homes until the mortgage is paid off. When a homeowner...

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Is Property Tax Included in My Mortgage or Should I Pay Another Way?

Property taxes are payments you make to help fund your local, city and state governments so that they can provide you with public services.  And that’s important. Ask yourself where you would be without vital community services like fire, police, schools, sanitation and, of course, local parks and recreation facilities. You may be wondering how...

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