Category: Mortgage
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What’s a Green Mortgage? Energy-Efficient Mortgage Lets a Borrower Ask for More
Are you thinking of buying a home that could use some energy upgrades? Maybe the HVAC, water heater, or windows are old and inefficient. A “green mortgage” — known to lenders as an energy-efficient mortgage, or EEM, — allows buyers to finance energy upgrades through a mortgage that allows a little extra borrowing to cover…
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Thinking About an FHA Mortgage in 2023? Here’s What You Need to Know
Let’s start with the good news. This month, the government cut the amount of private mortgage insurance needed by people with FHA-backed home loans. This will benefit hundreds of thousands of people. Most will be modest-income mortgage applicants, primarily first-time home buyers. Here’s the scoop on this — plus a few other things relevant to…
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Maine Legalized Remote Online Notaries. Are We One Step Closer to Fully Digital Mortgages?
This year, Maine will become the 40th state to allow remote online notarization (RON). The new state standards take effect in July 2023. The American Land Title Association (ALTA) supports this move. ALTA is backing remote online notary legislation at the national level, too. It’s pressing for the SECURE Notarization Act, which would establish an…
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What Jerome Powell’s Up To (And Why Home Buyers Care)
The chair of the U.S. Federal Reserve, Jerome Powell, calls the shots for U.S. monetary policies. And yes, we could say the recent change in the real estate market has a lot to do with the Fed. Chair Powell, concerned about a sudden rise in inflation, announced a series of interest rate hikes in 2022.…
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Your Mortgage and the Law: An Overview
A mortgage loan is an ordinary part of financing today’s home purchase. It transfers a lien — a legal claim on a piece of real estate — to the lender, to secure the home loan. This lien is there to ensure the repayment of the loan. It’s an age-old concept. As explained by H. W. Chaplin…
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We Compare Streaming TV Services Before Subscribing. What About Our Mortgages?
Homes are pricey. Mortgage rates are up. Borrowers are concerned, and mortgage companies have good reasons to work hard for new customers’ business. So, isn’t it time borrowers researched our mortgages before signing up? Yet so few of us do. Zillow® says this could be costing homeowners hundreds of dollars each month. Let’s unpack this.
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The Best Conventional Mortgage: Fannie Mae or Freddie Mac?
Fannie Mae and Freddie Mac are the well-known conventional home mortgage companies. They’re classified as government-sponsored enterprises — GSEs. Both Fannie Mae and Freddie Mac are creatures of Congress. Both are investors in the mortgage market. Both are in the business of offering guarantees to banks and brokers nationwide. And both, as they exist today,…
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I Think My Mortgage Is Falling Through
What Should I Do Now? When the mortgage company rep says your credit check went well and your loan application is pre-approved, it’s a great day. You can go out into the world knowing just how much house you can buy. You can make offers a seller will take seriously. As hopeful buyers are sometimes…
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Thinking About an Adjustable-Rate Mortgage in 2022?
Consider the Risk Even though mortgage interest rates are still (historically speaking) quite low, they’re headed back up. On April 14, 2022, Freddie Mac rang the alarm on its Mortgage Rates page: This week, mortgage rates averaged five percent for the first time in over a decade. As Americans contend with historically high inflation, the…
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As Mortgage Interest Rates Nudge 4%, There’s a New Rush to Buy
Fear of Missing Out? Higher mortgage rates can be daunting for many buyers. And here they come. The silver lining? As interest rates begin to rise, this frenzied real estate market could start to level off. But first, it looks like a last-minute rush is on as people anticipate steadily rising rates throughout 2022. Let’s…
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Can a Home in a Living Trust Be Refinanced?
On Trust Property In a Time of Low Mortgage Rates A living trust is a revocable trust. And a revocable trust is a trust you can change — which means you can refinance. That said, your lender must be on board. Let’s take a brief look at how this plays out.
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We Know It. We Denounce It. So Why Does Bias in Lending Persist?
Black homeowners have long faced extra obstacles when buying their homes. And in the turbulence of 2020, barriers to Black homeownership rose yet again. When the mortgage lenders tightened their approval criteria, it turns out that more minority applicants were turned away. What’s more, Black applicants who receive loans are still paying more in interest…
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How to Take Someone Off the Mortgage
What’s the plan when your spouse or co-borrower needs to come off the mortgage? Will you refinance, keep a modified version of the loan, or sell the home to pay the loan off? Here’s a quick Q&A to explore the possibilities.
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After You’re Gone, Does Your Mortgage Live On?
You might be wondering about that house or condo you’ve left in your will. Often, after a homeowner passes on, the real property is sold from the estate to pay off debts. But maybe you have a relative who would like to have and keep your home. For the sake of exploring the question, say…
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Buying or Refinancing? Mortgage Servicing Matters.
Be sure you’re dealing with a company that takes service seriously. Various companies are involved in one mortgage. The home buyer’s journey might begin with a local mortgage expert. Then, the mortgage expert helps the buyer find a lender. Once the loan is approved, a borrower gets a mortgage servicer, too. Some lenders service their…