Author: Clay Smith
-
Using a HELOC for Home Improvement: How It Works
Categories: HELOCHomeowners looking for funds to make home improvements or updates can tap into their home equity through a HELOC. Home equity lines of credit, or HELOCs, are great options for homeowners who may need access to extra funds when improving, renovating or remodeling their home. HELOCs work in two periods: a draw period and a repayment period. During your HELOC draw period, you have access to your Read more
-
Can you refinance a HELOC?
Yes, you can refinance a HELOC. Refinancing a HELOC can be a powerful tool to help you get the most out of tapping into your home’s equity. A HELOC, or home equity line of credit, lets borrowers access a line of credit based on a portion of the equity they own in their home. HELOCs work in two periods: a draw period and Read more
-
What is a second mortgage? How does it work?
Categories: RefinanceSecond mortgages are any home loans you may have after your primary mortgage. These loans are great for borrowers who need funds for various expenses. If you choose to get a second mortgage, you will need to pay it back alongside any primary loans you may have. Because these loans are secured by your home, you will typically tend to get access to a larger sum of money compared to Read more
-
How to buy a house with bad credit
If you have a low credit score, you might think that you won’t be able to buy a house, but that isn’t true. While your options may be a little more limited, you can still buy a house with bad credit. There are two organizations that rank credit scores: FICO and VantageScore. Both rate on a scale of 300-850, but both take different aspects into consideration when scoring. When you are looking at your credit score, the greater the number, the better your score. Read more
-
What are closing costs? How much do they cost?
Whether you are a first-time homebuyer looking to purchase a property or a seasoned homeowner looking to sell one, you should expect to pay closing costs. Closing costs will be a percentage of the value a home sells for. While closing costs do affect a home’s affordability, they are important in making sure that the homebuying process goes smoothly for everyone and is handled professionally. Ready to begin the home loan Read more
-
What is escrow? How does it work?
Categories: First Time HomebuyerIf you are looking to buy a home or are learning more before entering the housing market, there is a good chance that you have heard the term escrow. Escrow accounts are a neutral third party that holds onto important documents and funds during a transaction to ensure visibility and trustworthiness during a contract or deal. When everything is finalized and terms of an agreement are met, what is held in the escrow account Read more
-
Cash-out refinance vs. home equity loans: How it works
If you are a homeowner looking to tap into your home equity to fund any larger expenses you may have, you may want to consider a cash-out refinance or home equity loan. These loans offer you an upfront lump-sum amount based on your home equity. Home equity is the difference between your home’s current value and the amount you Read more
-
When should I refinance my mortgage?
Categories: RefinanceWhen to refinance a mortgage depends on a borrower’s current mortgage and what they are hoping to get from it. A mortgage refinance should change an owner’s home loan in a way that benefits the borrower. Those looking to secure a lower mortgage rate may have to wait until rates drop. If you are hoping to refinance your mortgage and tap into your home equity, you may want to wait Read more
-
Requirements to Refinance a Mortgage
Categories: RefinanceA homeowner looking to refinance a mortgage will have to meet the requirements set by lenders. Refinancing your mortgage replaces your current home loan with one with new terms. Many borrowers choose to refinance their mortgage to get new rates or change the length of their loan. One reason borrowers refinance a mortgage is to reduce their monthly payments. These refinance requirements are set to help protect a lender Read more
-
Jumbo Loans Vs. Conforming Loans
Categories: JumboThe main difference between jumbo loans and conforming loans is the amount you are able to borrow. Conforming loans are limited to loan amounts set by the Federal Housing Finance Agency (FHFA), with the help of Freddie Mac and Fannie Mae. These loan amounts are referred to as conforming limits and change by area and Read more