Borrowing Advice | BorrowingAdvice.com

How Does A Mortgage Rate Lock-In Work?

walter — Tue, 31 Jan 2012 15:16:22 +0000

There are many different steps to getting a mortgage. Even after you find a lender you feel comfortable working with, you’ll have to decide what type of mortgage product best fits your needs. The two most important aspects of your mortgage will be the term of your loan and its interest rate. But interest rates on home mortgage products are always changing, and it can sometimes take several months or more from the time when you find the home and when you actually close on the transaction. Many borrowers find this degree of uncertainty to be unsatisfactory. If the rates...

Information and Advice on Fees that are Entailed in Buying a Home

walter — Fri, 20 Jan 2012 15:47:48 +0000

Buying a new home is generally one of the most significant financial decisions that a person makes in their life. It’s extremely rare to pay the entire purchase price in cash, so we are all familiar with the concept of getting a mortgage loan, and having to pay interest on that loan. But there are other costs and fees related to buying a home. There are a number of different fees relating to the home buying process, as well as numerous fees and costs associated with applying for the mortgage loan itself. Applying and getting approved for your mortgage can...

Understanding Amortization and How Mortgages are Paid Down

walter — Thu, 12 Jan 2012 15:21:05 +0000

The process of buying a house or a condominium is different than buying just about anything else. It’s possible to save up and pay cash for new home appliances, a new car or just about anything else, but it’s usually not possible to buy a home with cash. Instead, home buyers generally need to take out a mortgage. Unfortunately, the process by which a home mortgage gets paid down may not be entirely clear to first-time buyers (or even to those who have purchased a home before). While there are a variety of home mortgage types, a common element of...

Advice on How to Get a Jumbo Mortgage

walter — Thu, 05 Jan 2012 15:02:23 +0000

There’s a good chance that you probably already know a little bit about the process of obtaining a mortgage loan to purchase a home. Perhaps you’ve even gone through it a few times yourself, so you know about what to expect with regard to down payments, fees and other closing costs. But so-called “jumbo” mortgages are somewhat different. Jumbo mortgages are mortgages that exceed the maximum value set by Fannie Mae and Freddie Mac for so-called “conforming” loans. For homes in most parts of the United States, the current threshold is $417,000, although the number is higher in more...

Advice on How to Shop for a Mortgage Online

walter — Fri, 16 Dec 2011 15:35:56 +0000

In years past, the getting a mortgage to buy a new home would involve going to your local bank and meeting with a loan officer who, chances are, you might have already known personally. Today, there are many other options for getting a home loan, and it’s actually possible to apply for a mortgage online without ever having to visit a bank or meet with a loan officer. Even though the mortgage application process can occur online, the structure of the transaction, and the documentation that you’ll need to provide, is fairly similar to the traditional process. The differences arise...

Borrowing Advice Money Saving Strategies for 2012

admin — Mon, 12 Dec 2011 15:19:17 +0000

While achieving your financial goals won’t always correspond to precise dates on a calendar, it’s common to use the beginning of each new year as an opportunity to plan major actions relating to your finances and your budget. One big financial step that many people will be taking in 2012 is borrowing money. You might be considering borrowing money in 2012 for any number of reasons; perhaps to purchase a new home (or refinance your mortgage), to buy a new car, for significant home improvement expenses or perhaps to finance or expand your businesses. Below are some borrowing advice strategies...

Borrowing Mistakes to Avoid

walter — Fri, 18 Nov 2011 15:44:06 +0000

Most of us do everything we can to avoid getting sick. We wash our hands regularly, make sure our food is adequately cooked and do all of the other little things so that we don’t come down with a cold or the flu. Unfortunately, we don’t always pay as much attention to our financial health. In many cases, any financial difficulties we find ourselves in are a direct result of our own actions or in-actions. Just as we try to avoid getting sick, we should avoid the bad decisions that could damage our financial well-being. Here is some information and...

Top Tips to Negotiate Your APR

walter — Thu, 20 Oct 2011 14:22:31 +0000

Credit cards offer a great deal of convenience and give us access to credit at a moment’s notice. So why do so many people think they’re evil? One reason is because they often come with a high APR (annual percentage rate). Since lending money through credit cards is somewhat riskier than making a one-time loan, banks charge higher interest on them. If you carry a balance, that interest can add up in a hurry. And if you’ve made late payments or gone over your credit limit, you could be paying high double digit interest rates. What many cardholders do not...

Second Mortgage Myths and Facts

walter — Tue, 04 Oct 2011 14:50:21 +0000

There’s been a lot of activity in the residential real estate and real estate lending markets over the past few decades. Home prices have spiked and fallen in many parts of the country, while foreclosures and similar proceedings are at or near record levels. Another significant development has been the rapid decline in interest rates, sending mortgage loan rates to all-time lows. There is also a fair amount of misinformation surrounding many of the financing vehicles and programs available for residential real estate. Second mortgages in particular are a common source of confusion. Here is some information and advice on...

Why Should You Have a Home Equity Line of Credit?

walter — Wed, 07 Sep 2011 14:24:56 +0000

For homeowners, tapping into their home equity has long been a popular way to get the money they need. Proceeds from home equity loans are often used to consolidate bills, make repairs, take care of emergency expenses or help pay for a child’s college education. The only catch is that the loan is secured by your home, so if you fail to repay it, the bank can foreclose. But many homeowners do not realize that there’s another option for accessing their equity: the home equity line of credit, or HELOC for short. A HELOC offers all of the benefits of...