Author: buyorsellyourhome

When lenders approve you for a loan, they take a risk. They risk you not paying the mortgage back, which means the bank takes a loss. While foreclosure sales earn banks some money back, they still suffer financially for each foreclosure.

PMI or Private Mortgage Insurance helps banks offset the risk. Private insurance companies issue the insurance that protects lenders should you default. Conventional loan borrowers who put less than 20 percent down on a home pay PMI.

When you apply for a mortgage, you may hear the word mortgage points thrown around. Many people assume they are ‘bad’ and try to avoid them.

This guide breaks the stigma surrounding mortgage points, helping you understand the truth of how they work.

As mortgage rates continue declining, more buyers enter the real estate market. Unfortunately, there are lower housing inventories, making your home search more difficult than you expected. Does this mean buying a home during COVID-19 is impossible?
It doesn’t. It means making changes and expectations regarding the home buying process, though.
Here’s what to expect buying a home during the coronavirus pandemic.

Do you have equity in your home? Many homeowners don’t even know if they do or how much.

If you have equity in your home, you may use it to consolidate debt, make home improvements, or just keep on hand. Equity goes beyond the amount you invested when you bought your home. As you make your mortgage payments and/or your home appreciates, your equity increases.

Now, learn how to determine your home equity and how to use it.

Are you thinking of buying a house, but aren’t sure if you can afford it?

It’s time to budget.

Many people groan when they hear the word ‘budget’, but there’s power in knowing how much money you have and how much you can afford. Often we think we have more than we thought. Sometimes it’s the opposite, and we hold ourselves back, thinking we can’t afford it.

Before you apply for a mortgage, we urge you to create a budget so you can see what housing payment you can comfortably afford.

Use these simple steps and start your budget.

One thing most borrowers want is a lower interest rate. You see crazy low rates advertised everywhere, but when you apply for a mortgage, you don’t get those rates. Why the difference?

It’s likely due to your qualifying factors. Lenders reserve the ‘best’ interest rates for ‘great’ borrowers. What makes a great borrower and how can you be one?

Traditional retail banking providers, weighed down by monolithic legacy systems and ponderous regulations, are in uncomfortable territory. Advancements in fintech have upended the industry, enticing both large financial firms and smaller tech startups to apply disruptive technologies in ways that threaten the status quo.
To become more agile and remain relevant, traditional retail banking providers find themselves exploring their technological options with focused intensity. In particular, they’re looking for insights into customer behaviors.

What an exciting time in your life. Did you know that beyond choosing the right house, though, you must also choose the right mortgage? It takes more than calling your bank and asking for a loan. There are decisions to make regarding your finances as your mortgage affects your bottom line for the next 15 – 30 years.

Next to your credit score, lenders pay the most attention to your debt-to-income ratio or DTI. That’s because this ratio tells lenders if you can afford the mortgage or if you’ll struggle. A high DTI creates a high risk of default and most lenders avoid applicants with them.
If you have a high debt-to-income ratio, what can you do to decrease it fast? Here are a few of our favorite ways.

People go into real estate investment for different reasons. Whichever way, the usual returns on investment come in the forms of leverage, tax benefits, appreciation, and cash flow. Investing in real estate properties, however, is not a guarantee of good returns. An investor that wants to increase their chances of getting maximum ROI must invest in the right property.