A Mortgage REIT, or mREIT, is a type of real estate investment trust that invests in real estate loans and mortgage-backed securities. Unlike equity REITs, which generate revenue through leasing space and collecting rents, mREITs earn income from interest on mortgage investments. Investing in Mortgage REITs (mREITs) can be a lucrative opportunity for those seeking…
“Do not advance due date” means that extra payments won’t change the timing of your next minimum monthly payment. This term is commonly used in the context of loans, where making additional payments doesn’t push back your next due date, ensuring regular monthly payments are still required. Understanding the concept of “do not advance due…
Yes, it is possible to get a VA loan with a cosigner. The cosigner must meet certain requirements. Getting a VA loan with a cosigner can be a viable option for individuals who may not qualify based on their own credit history or income. A cosigner can provide additional support for the loan application, but…
A lease to own car is an agreement that allows the lessee to purchase the vehicle at the end of the lease period. It combines the benefits of leasing and eventual ownership, offering flexibility and lower payments compared to traditional buying or financing. Lease to own car programs provide individuals with the option to keep…
The collateral that secures a mortgage is the property being purchased, typically the house itself. When a borrower takes out a mortgage to buy a home or real estate, the property serves as collateral for the loan. In the event of loan default, the lender can seize the property to recover its losses. A mortgage…
Yes, private student loans can be discharged in bankruptcy, but the process is not easy. Private student loans are generally considered non-dischargeable in bankruptcy, but it is possible to have them discharged under certain circumstances. Bankruptcy may offer relief from private student loan debt, but it’s a complex and challenging process. Many people seek legal…
The mortgage constant, also known as the mortgage capitalization rate, is the rate for debt capitalization, calculated by dividing the monthly payment by the mortgage principal. It represents the percentage of money paid annually to service the loan. This metric is a crucial factor in determining the financial feasibility of a mortgage. By comparing the…
To get a lease to own home, find a property with a rent-to-own option and sign an agreement that includes a lease and an option to buy the property within a specified time frame. This allows you to live in the home and potentially purchase it in the future. Are you dreaming of owning a…
A Parent PLUS Loan can affect your credit score as it is issued under the parent’s name and reported to credit bureaus, potentially impacting your eligibility for a mortgage. When a parent applies for this loan, a credit check is conducted, which can temporarily lower their credit score. This could affect their ability to secure…
The Low-Income Housing Tax Credit (LIHTC) is a federal program that awards tax credits to housing developers in exchange for providing a certain percentage of rent-restricted units for lower-income households. This program plays a crucial role in creating and maintaining affordable rental housing for low-income families. By offering tax credits as equity financing, multifamily developers…
To get a house under contract, negotiate the price and terms with the seller. Then, draft a purchase agreement and have both parties sign it. Looking to buy a house and secure it under contract? The process involves negotiating with the seller to agree on the price and conditions. After reaching an agreement, a purchase…
Yes, payday loans can garnish wages if there is a court order resulting from a lawsuit against you. This means that a payday lender can legally obtain a court order to garnish your wages if you default on the loan. Payday loans have the potential to create financial stress and negatively impact your credit if…
Accelerated banking is a strategy that involves using a Home Equity Line of Credit (HELOC) to pay off a mortgage more quickly. It allows borrowers to reduce their principal balance and save on interest payments. Are you looking to pay off your mortgage faster and save on interest? Accelerated banking might be the solution for…
In real estate, ARM stands for Adjustable Rate Mortgage, which refers to a home loan with a variable interest rate. It starts with a fixed interest rate for a set period, then adjusts periodically based on the market. The real estate market offers various mortgage options, and one of the common terms you may encounter…
A line of credit can affect your credit score as the credit limit and balance impact your credit utilization. Additionally, your payment history on the account can also influence your score positively or negatively. When you utilize a line of credit responsibly, it can potentially improve your credit score. However, if mismanaged, it may lead…