A point — often called “discount point” or “origination fee” — is equal to one percent of the loan amount. Points are charged by the lender and paid at closing. Paying points allows a borrower to “buy down” his interest rate. The whole idea of points came about in the…
Your monthly mortgage payments are handled by what is known as a mortgage servicer. The mortgage servicer is responsible for collecting your monthly payments and handling your escrow account. Your escrow account is a special account held in your name to pay obligations such as property taxes, insurance premiums and…
The following is a list of items and information your lender will probably need in order to process your loan in a timely fashion. Residence History: Complete addresses for all residences for the past 2 years Length of time at each residence If Renting – Landlord name, complete address and…
Many consumers assume that “mortgage companies” are banks that lend their own money. In fact, a company that you deal with may be either a mortgage banker or a mortgage broker. A mortgage banker is a direct lender; it lends you its own money, although it often sells the loan…
Stay Positive. Rather than making getting out of debt, which is no fun, your goal, set a positive goal like gaining financial health and creating wealth or saving to buy a home. Set an achievable time for achieving a goal. Write your goal down and plaster it everywhere to keep…
For starters, it might be helpful to know that your credit score is actually a reflection of your credit history. Did you have had a few problems getting the bills paid in the past, and are wondering what you can do to repair the damage? Or, maybe yours is OK, but you would…
The information in your credit report has a huge impact on whether or not you qualify for a mortgage loan and what interest rate a lender will offer. Therefore, it’s important your credit report reflects a positive image of the way you manage your money. If you’re getting ready to…
Your credit report is a record of your credit activities. It lists all of your credit card accounts and loans, the balances as well as your payment history. It also shows if any action has been taken against you because of unpaid bills such as a lawsuit or bankruptcy filing.…
Your debt to income ratio is simply a way of determining how much money is available for your monthly mortgage payment after all your other recurring debt obligations are met. Debt limit There is generally a debt limit associated with each type of loan, such as a 28/36 qualifying ratio.…
IF you recently heard what one of your scores is, forget about it – THEY CHANGE EVERY DAY – plus, we need all 3 of them! Named for credit scoring – industry leader Fair, Isaac and Co., the FICO score is a very significant part of how most mortgage lenders and…
