When someone applies for a mortgage, there are a handful of numbers that really matter. One of the most important is something called your debt-to-income ratio. It sounds technical at first, but once you understand it, it’s actually very straightforward. And if you’re planning to buy a home, this is a number you definitely want…
If you’re buying a home or already have a mortgage, you’ve probably heard the term escrow account. It’s one of those phrases that comes up often in the home buying process but isn’t always explained clearly. Once you understand how it works, it actually makes a lot of sense. An escrow account is a separate…
If you currently have an FHA loan, you may have heard about something called the “FHA Streamline Refinance.” The name says it all—it’s a faster, simpler way to refinance your FHA mortgage. But what does that really mean, and how do you know if it’s right for you? Designed for FHA Borrowers The FHA Streamline…
When buying a home, one term that often surprises people is Private Mortgage Insurance, or PMI. If you’re planning to buy with less than 20% down, this is something you’ll want to understand before signing on the dotted line. What Is PMI? PMI is an insurance policy that protects the lender, not the borrower, in…
When you hear the word amortization in the mortgage world, it might sound complicated, but it’s really just a structured way of paying back your loan. Put simply, amortization is the process of spreading your mortgage payments over time so that each monthly payment covers both principal (the money you borrowed) and interest (the cost…
When shopping for a mortgage, one term you may hear is “discount points.” It sounds nice—after all, who doesn’t want a discount? But in the world of home loans, discount points don’t lower the price of the home; instead, they lower your interest rate. A discount point is essentially a form of prepaid interest. Each…
If you’re getting a mortgage, chances are you’ll hear about an “escrow account.” It’s a term that can make the home loan process sound more complicated than it really is, but the idea is pretty simple: it’s a way to make sure certain home-related bills are taken care of without you having to stress about…
