Cosigning can impact your credit. Any late or missed payments on the co-signed loan can negatively affect your credit scores. Additionally, if the borrower defaults on the loan, it may be referred to a collection agency, further impacting your credit. When you cosign a loan or credit card, it’s likely to show up on your…
An alienation clause requires immediate payment of the mortgage loan balance during the sale or transfer of a property title. This clause must be satisfied before a new buyer can take ownership. The alienation clause, also known as a due-on-sale clause, is a provision in a mortgage contract that mandates the borrower to settle the…
The 1098 Mortgage Interest Statement is a standardized IRS form that shows the amount of interest and related expenses you paid on your mortgage throughout the year. It is used by taxpayers to report these details when filing their taxes. For homeowners, this form provides essential information for claiming deductions related to mortgage interest, potentially…
A credit sweep, also known as an automated credit sweep, is an arrangement between a bank and a customer to use idle funds in a deposit account to pay short-term debt. This practice is often used by corporations to manage their finances effectively. Credit sweeps are a popular but fraudulent service offered by some credit…
“Payment posted” means the payment has been fully processed and completed. It will no longer affect your available balance. When a payment is posted, it signifies that the transaction has been fully processed and reflected in your current balance. This ensures that the payment has been completed and will not impact your available balance. Understanding…
Explore Credit typically takes as little as two business days to deposit funds into your bank account. The super-simple online process allows for a quick decision, usually within minutes, making it a convenient option for those in need of timely financial assistance. In today’s fast-paced world, financial emergencies can arise unexpectedly, leaving individuals in need…
Your mortgage keeps getting sold because lenders sell loans to free up capital and generate cash. This is a common practice in the financial industry, allowing lenders to make more loans and generate additional revenue. When you take out a mortgage, it becomes part of a broader network of debts that can be bought and…
If you’re struggling to pay your mortgage, contact your lender for assistance and consider options like refinancing or loan modification. It’s essential to act promptly to avoid potential foreclosure. Paying a mortgage can become challenging during times of financial hardship. Unexpected circumstances such as job loss, medical expenses, or other financial setbacks may lead to…
Yes, mortgages can be transferred to another person under certain circumstances. When a mortgage is transferable, it can be reassigned to a new borrower upon approval from the lender. This process allows the new borrower to assume the existing mortgage terms and continue making the payments. However, not all mortgages are transferable, so it’s important…
A reconveyance is a document that transfers the title of a property from the lender back to the borrower once a mortgage has been fully paid off. It confirms the transfer of ownership and is crucial for selling the property. Understanding the concept of reconveyance is essential for homeowners and real estate professionals alike. When…
A mobile deposit adjustment means that the submitted dollar amount was incorrect and needed correction by the bank. This adjustment could be due to an error in the amount initially credited to your account. When a bank administrator reviews and corrects the deposit amount, it results in a mobile deposit adjustment. It’s important to understand…
Yes, a bank can demand full mortgage repayment by invoking the acceleration clause in the loan agreement. This clause allows the lender to require immediate payment of the entire outstanding balance if the borrower breaches the terms. When obtaining a mortgage, borrowers enter into a legal agreement with the lender to repay the loan over…
A Schumer Box is a summary of a credit card’s costs, including interest rates and fees. It’s a legally required table that helps consumers compare credit card offers. Schumer Boxes are standardized and must appear in all credit card agreements. They were named after Chuck Schumer, a former New York congressman who introduced the legislation…
In Texas, USDA loans are available for properties located in rural areas. These loans are not limited to a specific city but are generally applicable to areas outside major cities and their immediate suburbs. USDA loans in Texas are designed to promote homeownership in rural communities, making it easier for individuals and families to purchase…
The Loan-to-Value (LTV) in a car loan is the ratio of the loan amount to the vehicle’s actual cash value. Lenders use this to evaluate loan applications and measure risk. When applying for a car loan, understanding the Loan-to-Value (LTV) ratio is crucial. It represents the percentage of the car’s total cost that the bank…