HELOC stands for “Home Equity Line of Credit”. A HELOC is a special type of loan that allows you to tap into the equity you have built up in your home without refinancing your entire mortgage. In other words.. it is basically a second mortgage. How much money you can borrow through a HELOC depends […]
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Understanding Closing Costs
First-time home buyers are often shocked when they see the list of closing costs they must pay when purchasing a home. What are Closing Costs? Some of these fees are charged by the mortgage company, while other fees are payable to different parties. Your realtor should explain all of this to you, as well as […]
Mortgage Discount Points
If you’ve been shopping around for a mortgage you have undoubtedly heard the term “points” mentioned many times. But if you are like most people, you haven’t the slightest idea what it means. What are Mortgage Discount Points? When people talk about mortgage points, they are usually referring to mortgage discount points. Each point is […]
FHA Loans vs Conventional Loans
Federal Housing Authority (FHA) loans and Conventional loans both refer to different types of home mortgage loans, with conventional loans encompassing all mortgages regulated by the current Fannie Mae (Federal National Mortgage Association) and Freddy Mac (Federal Home Loan Mortgage Corporation) lending limits. There are two main differences between these two types of mortgage loans: […]
Private Mortgage Insurance – PMI
When Do You Need Private Mortgage Insurance? Private Mortgage Insurance (PMI) needs to be obtained from the lender in any case where the down payment is less than 20 percent of the sales price. It is not beneficial to you in any way whatsoever, but in case you are not able to repay the loan, […]