21 Aug 2024
By lizlaurenb

Exploring Different Types of Home Insurance Coverage

Mortagage Tips
When it comes to protecting one of your most significant investments—your home—having the right insurance coverage is essential. Home insurance, also known as homeowners’ insurance, offers financial protection against a wide range of potential risks, from natural disasters to theft. However, not all home insurance policies are created equal. Understanding the different types of home insurance coverage can help you make an informed decision that best suits your needs. We will touch on the various types of home insurance coverage available and what each one entails. 1. Dwelling Coverage Dwelling coverage is the cornerstone of any home insurance policy. It…
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20 Aug 2024
By lizlaurenb

When to Ask for Repairs vs. Taking a Credit

Mortagage Tips
Buying a home is a significant investment, and ensuring the property is in good condition is crucial. There are times when asking the seller for repairs is the best course of action, but in other situations, requesting a credit may be more beneficial. Understanding when to choose each option can help you navigate the buying process more effectively. The Impact of Loan Types on Repairs Certain loan types, such as Federal Housing Administration (FHA) and Veterans Affairs (VA) loans, require the home to meet specific condition standards. If the house doesn’t meet these standards, the loan could be rejected. This…
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19 Aug 2024
By lizlaurenb

What’s Ahead For Mortgage Rates This Week – August 19th, 2024

Financial Reports
The results are in, and both the CPI and PPI inflation reports confirm that inflation has come in lower than expected, surpassing expectations. This is a great result leading forward for the next FOMC Rate Decision meeting, as there is high optimism now that the rate cuts are coming this year. With next week's FOMC Minutes guiding the next meeting, we can expect to hear their stance going forward. We also see a matching indicator in Retail Sales, showing a significant gain across the board, while auto sales had the largest increase in one and a half years. This aligns…
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16 Aug 2024
By lizlaurenb

Understanding the Difference Between a Co-Borrower and a Co-Signer

Mortgage Application
When it comes to securing a mortgage, the terms and roles can often be confusing. One such term you might come across is "co-borrower." Understanding what a co-borrower is and how they differ from other roles in a mortgage can help you make informed decisions when navigating your home loan process. What is a Co-Borrower? A co-borrower is an individual who applies for a mortgage loan alongside the primary borrower. This person shares the responsibility of repaying the loan and is equally liable for the debt. Essentially, a co-borrower is a partner in the mortgage process, helping to strengthen the…
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15 Aug 2024
By lizlaurenb

The Impact of Inflation on Mortgage Rates and Homebuying Power

Mortgage Rates
In today's economic climate, inflation has become a hot topic, especially for potential homebuyers. Understanding how inflation affects mortgage rates and your homebuying power is crucial. Let's see how it can impact your journey to homeownership. What is Inflation? First and foremost, inflation refers to the rate at which the general level of prices for goods and services rises. When inflation is high, purchasing power decreases because each unit of currency buys fewer goods and services. How Inflation Affects Mortgage Rates Inflation and mortgage rates are closely linked. Here's how: Rising Interest Rates: When inflation increases, central banks often raise…
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14 Aug 2024
By lizlaurenb

What is a Flex Payment Mortgage?

Mortgage
Understanding your options when shopping for a mortgage is crucial to making the best financial decisions. One option that is not well known is the Flex Payment Mortgage. But what exactly is it, and how can it benefit you? Understanding the Basics First and foremost, a Flex Payment Mortgage is a type of home loan that offers borrowers the flexibility to adjust their monthly payment amounts. Unlike traditional mortgages with fixed monthly payments, this mortgage type allows you to choose from several payment options each month. These options typically include a minimum payment, an interest-only payment, a fully amortizing payment,…
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13 Aug 2024
By lizlaurenb

Getting a Mortgage After Chapter 13 Bankruptcy

Bankruptcy History
Filing for Chapter 13 bankruptcy can be a challenging experience, but it doesn't mean the end of your dreams of homeownership. While the path to securing a mortgage after Chapter 13 might seem daunting, with careful planning and dedication, it's entirely possible. Here’s how you can prepare yourself for a successful loan application and rebuild your dream home. Understanding Chapter 13 Bankruptcy First and foremost, it's essential to understand what Chapter 13 bankruptcy entails. Unlike Chapter 7, which involves liquidating assets, Chapter 13 allows you to create a repayment plan to pay off your debts over three to five years.…
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12 Aug 2024
By lizlaurenb

What’s Ahead For Mortgage Rates This Week – August 12th, 2024

Financial Reports
With so little in the way of data releases following the previous week's FOMC Rate Decision, we’re left with a small release schedule with Consumer Credit and U.S. Trade Deficit rounding up the reports. While relatively light indicators of the current health of the economy, they are still useful for determining more impactful trends in the future. Next week, the inflation data reports with the CPI and PPI are the ones to look out for. This time, these are the ones that will largely determine whether we see rate cuts this year, and lending partners have already been lowering rates…
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09 Aug 2024
By lizlaurenb

Exploring Alternative Paths to Homeownership

Home Buyer Tips
Purchasing a home is a significant milestone, and traditional mortgages aren't the only route to achieving this dream. For many homebuyers, especially those who may face challenges with conventional financing, exploring alternative financing options can be a game-changer. We will discuss three creative financing options: rent-to-own, lease-purchase agreements, and shared equity arrangements. Rent-to-Own: Bridging the Gap to Homeownership First and foremost, let's discuss rent-to-own arrangements. This option allows potential buyers to rent a home to purchase it after a set period. During the rental phase, a portion of the monthly rent may go toward the future purchase price. This method…
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08 Aug 2024
By lizlaurenb

Understanding Foreclosure and How to Avoid It

Foreclosure
As a homeowner, the thought of foreclosure can be daunting. Understanding what foreclosure is and how to prevent it can provide peace of mind and safeguard your investment. What is Foreclosure? Foreclosure is a legal process where a lender attempts to recover the balance of a loan from a borrower who has stopped making payments. The lender forces the sale of the asset used as collateral for the loan—in this case, your home. How Does Foreclosure Work? The foreclosure process typically begins after several missed mortgage payments. First, the lender issues a notice of default, giving you a certain period…
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