Blog - Page 2 of 120 - Tawnya King

30 Apr 2025

Should You Use a 401(k) for a Down Payment?

Mortgage Tips

Buying a home is a major financial milestone, and saving for a down payment can be one of the biggest challenges. If you’re struggling to gather the necessary funds, you might be considering using your 401(k) retirement savings to cover the cost. While this option is available, it’s essential to weigh the potential benefits and risks before making a decision. How Can You Use a 401(k) for a Down Payment?There are two primary ways to access funds from your 401(k) for a home purchase: 401(k) LoanA 401(k) loan allows you to borrow money from your retirement savings and pay it…

29 Apr 2025

By Tawnya King

What Percentage of Your Income Should Go Toward a Mortgage?

Mortgage Tips

When buying a home, one of the most critical financial decisions is determining how much of your income should go toward your mortgage. Striking the right balance ensures that you can comfortably afford your home without stretching your budget too thin. Lenders use various guidelines to help buyers determine affordability, but personal financial goals and lifestyle should also factor into the decision.General Mortgage Affordability GuidelinesA common rule of thumb is the 28/36 rule, which lenders often use when evaluating mortgage applications: 28% Rule: Your monthly mortgage payment (including principal, interest, property taxes, and homeowners’ insurance) should not exceed 28% of…

28 Apr 2025

By Tawnya King

What’s Ahead For Mortgage Rates This Week – April 28th, 2025

Financial Reports

While many useful indicators are set to be released this week, the previous week left us only with the Leading Economic Indicators, which showed signs of the economy slowing down in the future. Consumer Sentiment reports also indicated widespread dissatisfaction across all levels of income and education, largely due to the impacts of recent tariff decisions, which have been on hold. We should expect next week to provide a clearer picture as decisions are made in the trade war between China and the United States. The PCE Prices, Non-farm Payrolls, Chicago Manufacturing PMI, Personal Income, and GDP estimates will offer…

25 Apr 2025

By Tawnya King

Can I Finance Home Renovations Into My Mortgage at Closing?

Home Buyer Tips

Purchasing a home that needs renovations or upgrading your current home can be costly, but financing home improvements through your mortgage can be an effective solution. Instead of taking out a separate loan for renovations, some mortgage programs allow you to roll the cost of home improvements into your home loan at closing. This strategy can help you spread renovation costs over time while securing a potentially lower interest rate compared to personal loans or credit cards. How Financing Renovations Into Your Mortgage WorksWhen you finance renovations into your mortgage, the loan amount includes both the purchase price (or refinance…

24 Apr 2025

By Tawnya King

Unlocking Government Grants for Home Renovations and Improvements

Home Care Tips

Home renovations can be a significant financial undertaking, but government grants and assistance programs can help offset costs for eligible homeowners. These grants are designed to promote energy efficiency, accessibility, and overall home safety. Understanding the available options and how to qualify can make a substantial difference in financing your home improvement projects. Understanding Government Home Renovation GrantsGovernment grants for home renovations are typically offered at the federal, state, or local level and are often geared toward specific types of improvements, such as energy-efficient upgrades, structural repairs, or accessibility modifications. Unlike loans, grants do not need to be repaid, making…

23 Apr 2025

By Tawnya King

How Child Support and Alimony Payments Affect Mortgage Qualification

Mortgage Tips

When applying for a mortgage, lenders carefully assess your income and debt to determine your ability to repay the loan. If you receive or pay child support or alimony, these payments can significantly impact your mortgage qualification. Understanding how they factor into your debt-to-income (DTI) ratio, income calculation, and overall loan approval process can help you better prepare for home financing. How Lenders View Child Support and Alimony Lenders evaluate child support and alimony payments in two key ways: If You Receive Child Support or Alimony—These payments may be considered additional income, helping you qualify for a higher loan amount.…

22 Apr 2025

By Tawnya King

The Pros and Cons of Using Gift Funds for Down Payments

Homeowner Tips

For many homebuyers, especially first-time buyers, saving for a down payment can be one of the biggest hurdles to homeownership. Fortunately, gift funds, money given by family members, close relative, or even an employer can help bridge the financial gap. While using gift funds can make homeownership more attainable, there are important benefits and potential drawbacks to consider before relying on them. Pros of Using Gift Funds for a Down Payment Easier Path to HomeownershipOne of the biggest advantages of using gift funds is that they allow buyers to purchase a home sooner rather than waiting years to save enough…