Category: Financial Fridays

There are many favorable reasons to buy a new home in lieu of renting. Most homeowners will agree that receiving tax advantages is high on the list. Tax benefits will vary widely depending on the circumstances of the individual home buyer, but the main …

If you are in the market for a new home, you may want to look into the energy efficiency mortgage program, also known as EEM. This type of home loan program helps borrowers qualify for loans to purchase homes with specific energy-efficiency improvements. …

When a home-owner decides to borrow more money on built-up home equity as a second loan rather than refinancing the original loan, it’s referred to as second mortgage. The original mortgage taken out on the property is the primary lien until it’s paid …

Ironically, escrow is not a requirement by most lenders in the sub-prime mortgage market. The reason is simple. The majority of sub-prime loans are marketed to less experienced borrowers and loans with lower monthly payments without escrow appear more attractive and are easier …

With interest-only home loans, borrowers have the option of paying only the interest on their scheduled monthly mortgage payments. With the Interest-only (IO) option, borrowers pay on the principal when it’s convenient for them. Typically, IO options last for a period of five to ten years. Even though the borrower can opt to …

If you’re a first time home buyer, beware of falling into the monster mortgage trap. It’s perfectly normal for a buyer to want the very best new house they can afford. Just make sure it’s a new home that fits within your comfort zone of affordability. There are many lenders that will expand …

The mortgage Underwriting process is used by lenders to determine whether the risk of lending to a particular borrower is advisable. Mortgage Underwriters undergo a risk assessment based on a borrower’s credit history and capacity to repay a mortgage. The purpose of underwriting is to determine whether the …

A reverse mortgage is a specific type of home loan that allows a home owner (62 years of age or older) to convert a portion of equity into cash. Reverse mortgages allow seniors more financial security to supplement social security, handle …

Predatory lenders target people that are strapped for cash or who have difficulty obtaining conventional mortgage loans due to low income, self employment, sketchy employment history and/or poor credit. The loans that abusive lenders peddle have significantly higher interest rates …

A mortgage prepayment penalty allows the lender to charge a borrower additional interest if the mortgage is repaid during a specific period of time. If a mortgage loan does include a prepay penalty, it should be clearly stated within the mortgage disclosures, mortgage …