A second mortgage (sometimes just called a "second") is when you take out a home loan against a property that already has a mortgage on it. When you get a second mortgage, you use your home as collateral to gain access to cash locked up in the value of your home. You can use this money to pay for nearly anything, which is why many homeowners apply for a second mortgage. Types of Second Mortgages Home Equity Loan With a home equity loan, you get your money in one lump sum. You
An escrow account is for making payments toward your real estate fees like taxes and insurance. It helps make these fees more manageable through monthly installments rather than paying a large lump sum when these bills are due. There’s typically a minimum balance that must be maintained to ensure that you have enough money to pay the fees. However, these fees can sometimes fluctuate, and when this happens, your escrow account could be short. This is called an escrow shortage.
Curious about buying a foreclosed home? Here's what you need to know to get started. What's A Foreclosure? When a homeowner can't keep up with their mortgage payments, they often have no other choice but to give up the property to the lender. These properties are called "foreclosures." Since the lender is eager to sell the home and resolve the debt, they will list foreclosed homes at competitive prices --often well below market value. This is what makes foreclosed homes so at
A condo refi is similar to refinancing any other home. The lender will look at your income, assets, and credit to ascertain your qualification. Plus, the condo will also be appraised to determine the property value. However, since there are more variables when refinancing a condo, such as shared amenities, lenders usually conduct a condo review. It's worth noting that not every condo will require a review. A conventional loan refi of a detached condo typically won't need one
A home inspection alerts you to any immediate repair concerns plus gives you an idea of what it may cost to maintain the home in good condition. Let's take a closer look at the home inspection process so you know what to expect, and what the inspection does and does not include. What to Expect During A Home Inspection Before finalizing your offer to purchase a property, your real estate agent can arrange for a home inspection. The home inspector’s job is to look for any poten
You don't need to put a minimum of 20% down on a new home. That's the upside. The downside is that you'll need to pay mortgage insurance if your down payment is less than 20%. Read this post to learn the factors that determine if and when you can get rid of your mortgage insurance. What Determines Mortgage Insurance Removal? The Type Of Mortgage Insurance There are two types of mortgage insurance: private mortgage insurance (PMI) and mortgage insurance premiums (MIP). Convent
Renovations make your home more enjoyable. Plus, if you do them right, they may even increase your home's value. This comes in handy if you plan on selling your home in the future. But watch out! While some remodeling projects add value to your home, others do little to increase it and may even make your home less desirable to potential homebuyers. Find out which renovations are the best and which are the worst.
Remember that we can help you get the funds to finance home reno
While the housing market remains vibrant for buying and selling, the supply continues to be an issue in these past years. Low supply happens when there's an abundance of buyers but not enough houses for all of them. Many call it a "seller's market," which often results in a bidding war as multiple buyers compete for the same property. Here is how you can still get your dream home despite high competition. The Anatomy of a Bidding War A bidding war in real estate happens when
A solid credit score is necessary to get approved for a home loan. That's why we recommend against opening any new lines of credit or making large purchases on credit when applying for a home loan --these actions lower your score, resulting in getting denied a mortgage. But what about after? Does buying a house help or hurt your credit score? Let's find out. The short answer is that credit reporting agencies will penalize your mortgage debt in the short term. However, soon af