The impacts of a mortgage appear as soon as you apply and continue until you sell or make your final payment. That’s why it’s important to understand exactly how homeownership affects your credit score and what you can do to minimize the potential negatives.
The worst part about foreclosure is losing your house, but the indirect financial fallout is pretty bad too. A foreclosure can cause your credit score to drop by 100 to 200 points, with much of the damage coming in the first two or three months after you first fall behind on your mortgage. If that’s
Your debt-to-income ratio is the percentage of your monthly income that goes toward debt payments. While the math is easy, knowing what to put in the formula isn’t as simple. Learn how to calculate your debt-to-income ratio to keep tabs on how attractive you are to lenders.
It’s a big decision to join the military. Members of the Armed Forces face a slew of risks to their physical safety and psychological well-being. They make many trade-offs in their personal lives as well, from frequent moves to new towns around the United States to overseas deployments that challenge even the strongest families. To help offset
Buying a home comes with many decisions, among them the loan term you want. Should you choose a shorter loan term with higher minimum monthly payments or a longer loan term with smaller payments? Learn the differences between a 15-year and a 30-year mortgage, and the pros and cons of either option.
Adjustable-rate mortgages are great during the low-rate introductory period. But what happens when the fixed rate expires and starts adjusting? Often, that means higher monthly payments. Find out when it makes sense to refinance your ARM into a loan with a lower fixed rate.
With mortgage rates nearly doubling from 2021 to 2022, many homebuyers are taking a second look at adjustable-rate mortgages (ARMs). But these types of mortgages are riskier than traditional fixed-rate mortgages. Find out if they’re ever worth it.
In a contract for deed transaction, the buyer skips the traditional mortgage lender and works out a deal directly with the seller. That sounds great on paper, but contract for deed sales have plenty of downsides. Learn more about this unusual type of real estate deal.
A conventional loan is any mortgage loan not issued or guaranteed by the FHA, VA, or USDA. Most conventional loans are backed by Fannie Mae or Freddie Mac. These government-sponsored enterprises guarantee the loans against default, which indirectly lowers borrowers’ costs.
You can’t buy a house or refinance your current mortgage without locking in your interest rate and finalizing your expected principal and interest payment. But when exactly should you do that? Learn when it makes sense to lock your mortgage rate and your options for doing so.
There are many reasons to refinance your rental property, such as lowering your rate, changing your term, or converting an adjustable rate into a fixed rate. Learn how the process works and how to make sure it’s the best choice for your situation.