A home inspection checklist can help house hunters know what theyâre getting intoâwhether a property will likely be more of a nuisance than a nest. In a hot market, some buyers skip all contingencies, including the home inspection, taking on risk. Others are opting to have an inspection done before making an offer. In a […]
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Are you thinking about taking out a home loan or refinancing your mortgage? If so, knowing your loan-to-value (LTV) ratio, or the loan amount divided by the value of the property, is important. Letâs break down LTV: what it is, how to calculate it, and why it matters. (Hint: It could help save you a […]
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Traditionally considered a last-ditch source of cash for eligible homeowners, reverse mortgages are becoming more popular. Older Americans, particularly retiring baby boomers, have increasingly drawn on this financial tool to fund home renovations, consolidate debt, pay off medical expenses, or simply improve their lifestyles. So what is a reverse mortgage? Itâs a loan that allows […]
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Hypothecation may be a word youâve never heard, but it describes a transaction youâve probably participated in. Hypothecation is what happens when a piece of collateral, like a house, is offered in order to secure a loan. Auto loans and mortgages involve hypothecation since the lender can repossess the car or house if the borrower […]
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As you read real estate listings, you may come across industry jargon and certain catchphrases again and again. Paying attention to and understanding these terms can provide valuable clues about the home and the sellerâs situation. What follows is a real estate glossary that can help you decipher listings and figure out what a realtor […]
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Rising inflation can shrink purchasing power as prices of goods and services increase. This, in turn, can affect interest rates and the cost of borrowing. While the inflation rate doesnât have a direct impact on mortgage rates, the two do tend to move in tandem. What does that mean for homebuyers looking for a home […]
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It can be hard to find the sweet spot when making an offer on a home, but the home-buying process involves more than naming a price. Assuming that youâve been preapproved for a mortgage and that youâre finding homes in your price range, thereâs a usual method to follow in submitting an offer that stands […]
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What does it mean to be prequalified or preapproved for a mortgage? The two words are often used interchangeably, but they arenât the same thing and donât carry the same weight when a hopeful homeowner is ready to buy. Hereâs a look at how these two steps vary, how each can play a significant part […]
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Mortgage shoppers have multiple options, including the adjustable-rate mortgage (ARM). Is a 5/1 ARM a good choice? A lot depends on how long borrowers plan to keep the property and whether they can cover higher mortgage payments if interest rates go up. While most borrowers will opt for a conventional 30-year fixed-rate mortgage, some may […]
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A cash-out refinance is one way for homeowners to access a lump-sum of cash. The process involves borrowing a new mortgage for a larger amount than the existing mortgage. The borrower receives the difference in cash. It is only possible to do a cash-out refinance if the borrower has sufficient equity (ownership) in their home. […]
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