How Mortgages Work

If you’re faced with the prospect of having to pay private mortgage insurance, it’s natural to feel hesitant about an extra cost on top of your monthly mortgage payment, but PMI isn’t good or bad – it’s a tool. For home buyers, particularly first-time buyers, PMI can be the tool that gets you into a...

So, you want to buy your first home, but you don’t have the cash to pay for it in full. Allow us to introduce you to the mortgage loan. A lender (aka a mortgagee) lends you the money you need to buy the home, and you pay the money back according to the terms you...

If you’re deep into the process of getting a mortgage, that means you’ve already talked to a loan officer who helped you find the right mortgage (yay!). You filled out the mortgage loan application and handed over any requested documents to the mortgage loan officer.  Maybe you’ve been told that your application is with the...

You’ve fallen in love with a property, signed a sales contract and arranged your financing. There’s one more step to complete before finalizing the purchase of your new home – making sure the title is clear.  A clear title means no one’s standing in line waiting to claim a piece, if not all, of your...

If you use it right, debt can afford you some of life’s greatest purchases – a dream home or your own set of wheels. But debt comes at a price. The price of debt is interest, and interest is the price you pay to borrow money.  Normally, the amount you owe on a loan gets...

There’s no way around it. Proof of employment is a big part of getting a mortgage. Besides verifying your credit score and credit history, your lender is going to ask you to prove that you’re bringing in enough money to pay off the loan you want (dolla dolla bills, y’all!).  If you’re wondering why your...

It’s all nervous giggles and sweaty palms as you iron out the last few details of owning your dream home. After the offer is accepted and you sign on the dotted line, those keys drop into your palm, and you’re ready to step over the threshold.  But let’s rewind to that dotted line and, cough,...

You’re here to answer the million-dollar question: What is mortgage insurance? Or maybe you’re here to learn the difference between mortgage insurance premiums (MIPs) and private mortgage insurance (PMI). Either way, you’ve come to the right place.  Rule number one: To differentiate between MIP and PMI, you’ll need to know the different types of mortgage...

Buying a home can be challenging. From figuring out the right time to buy a home to figuring out how to buy a home (all while learning insider mortgage lingo in your spare time), it’s a lot.  It may look like madness, but, trust us, there’s a method to the “madness.”  Your home (because we...

Picture this: You found the perfect home. You qualify for the loan. You’ve got a pen in your hand, you’re ready to sign your mortgage loan, and then your lender starts talking about your amortization schedule. If you’re like a lot of us, you probably start to wonder what an amortization schedule is and why...

Have you ever wondered whether you should buy mortgage points? If this is your first time buying a home, we wouldn’t be surprised if you were asking yourself what a mortgage point is.   Mortgage points (aka mortgage discount points) are one of several tools buyers can use to decrease the total cost of owning a...

Included in every great home sale agreement is a great mortgage contingency clause. If you’re like most of the home buying population, you’re probably getting a mortgage to buy a home.  Because there’s no guarantee that you will qualify for a mortgage, adding a mortgage contingency clause to a real estate contract will protect you in...