Yes, it is possible to have two mortgages at the same time. Lenders typically require higher credit scores for second home mortgages compared to primary residence loans. Check your credit score and take steps to improve it if necessary. This may include paying down debt, disputing errors on your credit report, and making all payments…
A mortgage prepayment penalty is a fee that some lenders charge when you pay all or part of your mortgage loan off early, typically for loans less than three years old. This penalty is imposed to compensate for the prepayment risk and incentivize borrowers to adhere to the agreed-upon loan term. When taking out a…
Consolidating Parent PLUS loans can limit your repayment options, so carefully weigh the pros and cons. It’s important to note that Parent PLUS loans do not qualify for income-driven repayment plans and loan forgiveness programs. On the flip side, consolidating can make you eligible for the Income-Contingent Repayment (ICR) plan. Consider your specific financial situation…
Yes, you can add furniture to your mortgage by increasing the loan amount to cover the additional expenses, including furniture. However, this will increase the total interest you pay over the life of the loan. When purchasing a new home, many people find themselves in need of furniture to complete the space. While some may…
To make money from commercial property, you can generate income through renting and capital gains from property sales. Commercial properties offer income potential, professional relationships, and more objective price evaluations. They are used for businesses such as restaurants, retail stores, and office spaces. Owning commercial real estate provides more flexibility in lease terms and limited…
A co-signer is a person who agrees to be legally responsible for paying back a loan if the borrower fails to do so. This can be useful for individuals who are unable to qualify for a loan on their own, such as when purchasing a car. When it comes to obtaining a loan, having a…
A HELOC repayment works by allowing you to access a line of credit and make interest-only payments during the draw period, followed by a repayment period where you can no longer withdraw funds and must start repaying both principal and interest. A Home Equity Line of Credit (HELOC) is a flexible loan option that allows…
Rehab financing refers to loans used for purchasing and renovating properties, helping buyers afford necessary repairs without overspending. This type of financing is ideal for investors seeking to fund property upgrades and enhancements. Rehab financing, also known as a rehab loan, is a specialized type of loan designed to cover both the acquisition and renovation…
To purchase foreclosure homes, get pre-approved for financing and hire a real estate agent with foreclosure expertise. Then, find foreclosed homes, tour them in person, submit offers, conduct due diligence, get the home appraised, and close on the purchase. Are you interested in purchasing a foreclosure home but unsure where to start? Buying a foreclosed…
Yes, you can borrow money from a pending lawsuit. Lawsuit loans provide cash in advance for pending settlements. This type of funding can help cover living expenses and other costs during the legal process, providing financial support while awaiting the settlement. Pre-settlement funding is available from reputable legal funding companies, allowing plaintiffs to apply online…
An HPML, or higher-priced mortgage loan, is a loan with an annual percentage rate (APR) exceeding a certain threshold compared to the Average Prime Offer Rate (APOR). HPMLs are typically first-lien mortgages and come with specific regulations to protect consumers. These loans are subject to stricter requirements and may have higher costs and fees associated…
To save for a down payment on a house, track your spending, use cash, and consider a credit card with cash back. Lower your utility bills, explore down payment assistance programs, and automate your savings to reach your goal more effectively. Are you dreaming of owning your own home? The idea of saving for a…
FHA checks owner occupancy by requiring the property being financed to be occupied by the owner, preventing investors from benefiting from the program. This rule ensures that rental and seasonal properties do not apply. When obtaining an FHA loan, it is crucial to understand the owner-occupancy requirements. This rule is in place to prevent individuals…
The mortgage origination date is the date when the borrower closes on the property and signs the mortgage deed. It’s also the date when the loan is funded, typically the same as the property closing date. Understanding the mortgage origination date is crucial for both lenders and borrowers. It marks the beginning of the loan…
When getting a cosigner for a car, start by contacting banks, credit unions, and auto lenders to inquire about their cosigner policies. Choose someone with a high credit score, steady income, and minimal debt, such as a family member or close friend, to be your cosigner. Finding a cosigner for a car can be a…