15 Aug 2025
By Tawnya King

The Pros and Cons of Mortgage Assumptions

Mortgage Tips
When purchasing a home, buyers typically assume a new mortgage loan. However, in some situations, a buyer may opt to assume the seller's existing mortgage. Known as a mortgage assumption, this process allows the buyer to take over the terms and payments of the seller's current loan. While mortgage assumptions can offer benefits, they also come with certain drawbacks. Understanding the pros and cons of mortgage assumptions can help you determine whether this option is right for you. What is a Mortgage Assumption?A mortgage assumption occurs when a buyer takes over the seller's existing mortgage, including the remaining balance, interest…
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14 Aug 2025
By Tawnya King

The Impact of Bankruptcy on Mortgage Eligibility

Mortgage Tips
Going through bankruptcy can be a challenging and stressful process. However, it s important to understand how bankruptcy may affect your ability to secure a mortgage in the future. Bankruptcy, whether Chapter 7 or Chapter 13, can significantly impact your credit score and financial history, both of which are critical factors when applying for a mortgage. Despite this, it's possible to obtain a mortgage after bankruptcy, though the path may be a bit more complicated. Chapter 7 Bankruptcy and Mortgage EligibilityChapter 7 bankruptcy, also known as liquidation bankruptcy, involves the discharge of most unsecured debts. This means that individuals who…
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13 Aug 2025
By Tawnya King

The Benefits of Paying Points on Your Mortgage

Mortgage Tips
The Benefits of Paying Points on Your MortgageWhen you take out a mortgage, you may be given the option to pay points in exchange for a lower interest rate. A mortgage point, also known as a discount point, is equal to 1% of the loan amount. For example, if you re financing $200,000, one point would cost $2,000. While paying points means you ll pay more upfront, it can offer long-term savings. Understanding the benefits of paying points on your mortgage can help you decide if it's the right move for you. What Are Mortgage Points?Mortgage points are fees paid…
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12 Aug 2025
By Tawnya King

Cash-Out Refinance vs. Rate-and-Term Refinance: Which One Is Right for You?

Mortgage Tips
When considering refinancing your mortgage, two main options often come to the forefront: Cash-Out Refinance and Rate-and-Term Refinance. Both allow you to change the terms of your mortgage, but they serve different purposes and have distinct advantages. Understanding the differences between these two refinancing options is crucial to making an informed decision that best aligns with your financial goals. What Is a Cash-Out Refinance?A Cash-Out Refinance allows you to replace your existing mortgage with a new one for more than you currently owe. You receive the difference in cash, which you can use for various purposes, such as paying off…
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17 Apr 2025
By Tawnya King

Why Did My Mortgage Lender Change?

Mortgage
Buying a home is one of the most significant financial steps you’ll ever take. After securing a mortgage, you expect to send your payments to the same lender for years to come. So, when you receive a notice saying your mortgage has been sold and your payments should now go to a different company, it might feel alarming. However, this is a common practice in the mortgage industry, and it doesn’t change the terms of your loan. Understanding why mortgages are sold can help ease any concerns. Why Do Lenders Sell Mortgages? When a lender issues a mortgage, they provide…
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11 Apr 2025
By Tawnya King

The Top 3 Home Loan Programs First-Time Buyers Should Consider

Mortgage Tips
Buying your first home is an exciting milestone, but navigating the mortgage process can feel overwhelming. With so many loan options available, it is important to choose one that best suits your financial situation and long-term goals. Here are three of the most popular home loan programs that first-time buyers should consider. 1. FHA Loan: Ideal for Buyers with Lower Credit Scores and Small Down Payments The Federal Housing Administration (FHA) loan is a popular choice for first-time buyers because of its flexible requirements. FHA loans allow for lower credit scores and smaller down payments, making homeownership more accessible. Down…
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19 Mar 2025
By Tawnya King

How Mortgage Amortization Works

Mortgage Tips
When you take out a mortgage, you commit to a long-term financial obligation. Understanding mortgage amortization can help you make informed decisions about your loan and how your payments impact your financial future. What is Mortgage Amortization? Mortgage amortization refers to the process of gradually paying off your loan over time through fixed monthly payments. Each payment is divided into two parts: Principal: The portion that goes toward reducing your loan balance. Interest: The amount paid to the lender for borrowing the money. At the start of your loan, a larger percentage of your payment goes toward interest. Over time,…
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