How Mortgages Work
What Is a Loan Estimate Form and What Appears on It?
After you apply for a mortgage, your lender is going to hand you a three-page document. That document is your Loan Estimate. You’ll want to carefully read through its three pages because they’ll contain critical information and details about the loan. To help you get the most from your Loan Estimate, we break down the...
How To Assume a Mortgage
The home buying process can be long and challenging, but an assumable mortgage could make things faster and easier for both the buyer and the seller. Mortgage assumption gives sellers an edge while saving buyers on interest and closing costs. It’s not right for everyone, but it could make closing on a home shorter than...
30-Year Mortgage Rate History Explored
When you’re looking at home mortgages, most lenders will list their 30-year fixed-rate mortgage right at the top. How popular is it? Well, according to statistical data from the Federal Housing Finance Agency (FHFA), on new residential mortgages between 1998 and 2020, an average of 69.4% of mortgages were 20- and 30-year fixed-rate mortgage loans....
What Is Mortgage Underwriting?
When you apply for a loan to buy a home, lenders use mortgage underwriting to decide if they want to do business with you. During this process, your personal and financial information is evaluated to determine whether you can afford the loan. It’s the last step in the application process. Ideally, it ends with a...
30-Year Mortgage: Today’s Rates Explained
The 30-year fixed-rate mortgage has been one of the most popular ways that homeowners in America have financed new home purchases. What is this mortgage mainstay’s secret of success? Is it the right option for you when you buy? What if you want to refinance? Read on to find out more. How Does a 30-Year...
Closing Costs: What the Heck Are They and How Much Will I Pay on My Home?
Just when you thought you learned everything you needed to learn about buying a home, you come face-to-face with one of the last pieces of the process: closing costs. In a 2020 survey of REALTORS®, the National Association of REALTORS® reported that 25% of people ready to buy weren’t fully educated on closing costs. Handing...
Gift Money for Down Payments: How Can I Properly Use It?
Home buying can be a challenging experience for a variety of reasons. One of the biggest challenges for home buyers is saving up enough money to cover a down payment. Maybe that’s why a study from the National Association of REALTORS® (NAR) found that in 2019 more than 32% of first-time home buyers got a...
What Is Escrow? Explained for New Home Buyers
As you dip into the home buying waters, you may hear the term “escrow” being thrown around. Escrow accounts are common in real estate transactions and exist to protect both buyers and sellers. We’ll explain what escrow is, how it works and everything else you need to know about it when purchasing a home. What...