31 Jul 2024
By Tawnya King

How to Unlock Your Home’s Equity with a Cash-Out Refinance

Mortgage Rates
As a homeowner, you might be sitting on a valuable asset without even realizing it—your home equity. Tapping into this equity through a cash-out refinance can open up financial opportunities you hadn't considered. Here’s how you can unlock your home’s equity with a cash-out refinance and what you need to know before diving in. Understanding Cash-Out Refinance First and foremost, a cash-out refinance involves replacing your existing mortgage with a new one, but with a larger loan amount. The difference between your old loan and the new loan is given to you in cash. This can be a strategic way…
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30 Jul 2024
By Tawnya King

How to Leverage Down Payment Assistance (DPA) Loans for Your Home Purchase

Mortgage
Purchasing a home is a significant milestone, but the process can be intimidating, especially when it comes to saving for a down payment. Fortunately, Down Payment Assistance (DPA) loans offer a solution that can make homeownership more accessible. Let’s discuss how DPA loans work, their benefits and drawbacks, and the steps involved in leveraging these loans for your home purchase. Understanding Down Payment Assistance (DPA) Loans Down Payment Assistance (DPA) loans provide funds to help cover the down payment on a home. While DPA loans can cover 100% of your down payment, it's important to note that closing costs are…
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29 Jul 2024
By Tawnya King

What’s Ahead For Mortgage Rates This Week – July 29th, 2024

Financial Reports
Following the release of the PCE Index figures, which the Federal Reserve prefers as its key inflation metric, the data indicates a slight increase in inflation for the third quarter. Nonetheless, market sentiment remains unchanged, and the prediction that the Federal Reserve is on track to implement rate cuts this year holds firm. Saddled along with the PCE Index, we also have the Personal Income & Spending reports which have indicated the economy is still expanding, and the GDP estimates have also corroborated the reports with their own solid pre-release numbers.  PCE Index Prices in the U.S. rose slightly in…
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26 Jul 2024
By Tawnya King

What’s Changed in the Industry? The Post-COVID Mortgage Landscape

Mortgage Rates
The COVID-19 pandemic reshaped many industries, and the mortgage sector was no exception. As we move further away from the pandemic, the mortgage industry continues to adapt, reflecting new economic realities, regulatory changes, and shifts in consumer behavior. For mortgage originators, understanding these changes is crucial to helping homebuyers navigate the current landscape. Here are some of the most significant transformations and what homebuyers should be aware of in the post-COVID world. Shift in Interest Rates One of the most noticeable changes has been the fluctuation in interest rates. During the pandemic, rates hit historic lows as part of an…
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25 Jul 2024
By Tawnya King

Fixed vs. Graduated vs. Interest-Only Mortgage Amortization

Mortgage
When selecting a mortgage, one of the most critical decisions is choosing the right amortization schedule. This choice significantly impacts your monthly payments and the total interest you’ll pay over the life of the loan. Here, we’ll compare three common amortization options: fixed, graduated, and interest-only. Fixed Amortization A fixed amortization mortgage offers predictable monthly payments that remain constant throughout the loan term. This stability makes budgeting easier and provides peace of mind, knowing your payment won’t increase unexpectedly. Fixed amortization is ideal for those who plan to stay in their home long-term and prefer a straightforward, predictable payment schedule.…
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24 Jul 2024
By Tawnya King

Financing Home Improvements with Renovation Loans

Construction Loan
As a mortgage originator, I often encounter homeowners and buyers looking for ways to finance their home improvement projects. Renovation loans offer a fantastic solution, enabling you to upgrade and personalize your home while incorporating the cost into your mortgage. We will explore the different renovation loan options available, such as FHA 203(k) and Fannie Mae HomeStyle, to see how they can help you achieve your dream home. FHA 203(k) Loan The FHA 203(k) loan is a government-backed mortgage that allows you to finance the purchase of a home and its renovation costs with a single loan. This loan is…
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23 Jul 2024
By Tawnya King

The Importance of Employment History in Mortgage Approval and How Job Changes Impact Your Chances

Home Mortgage
When you're applying for a mortgage, lenders scrutinize several aspects of your financial life to determine your eligibility. One crucial factor that can significantly influence the outcome is your employment history. Consistent and stable employment demonstrates to lenders that you have a reliable income stream, which reduces their risk in lending you money. However, job changes or gaps in employment can complicate the approval process. Let’s explore how your employment history affects mortgage approval and offer some solutions to mitigate potential issues. Understanding the Importance of Employment History Lenders look at your employment history to gauge your income stability. Typically,…
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