To get a home loan when self-employed, you need to provide additional documentation to verify your income. Working with lenders experienced in handling self-employed borrowers can make the process smoother. Strengthening your credit, managing debt-to-income ratio, and providing a substantial down payment can improve your chances of securing favorable mortgage terms. Are you a self-employed…
Yes, student loans can be forgiven after 25 years through the Income-Driven Repayment (IDR) plan. This plan forgives any remaining loan balance after 25 years of qualifying payments. Student loans can place a heavy financial burden on individuals. Many borrowers are relieved to know that the Income-Driven Repayment (IDR) plan offers forgiveness after 25 years…
The longest auto loan term typically ranges from 72 to 84 months, or 6 to 7 years. This extended period allows for lower monthly payments, but may result in higher overall interest costs. When it comes to securing financing for a vehicle purchase, understanding the longest auto loan term available is crucial. While longer loan…
To settle debt for less, negotiate directly with creditors or seek professional help for debt settlement. Dealing with overwhelming debt can be stressful and challenging. However, there are strategies you can employ to settle your debts for less than the full amount owed. By negotiating directly with your creditors or seeking the assistance of a…
Yes, a borrower may waive the 3-day waiting period for the Closing Disclosure under specific circumstances. However, this is only allowed in the case of a bona fide personal financial emergency. It’s important to understand that this waiver is an exception and does not apply to all situations. When considering a waiver, it’s crucial to…
A lienholder is someone who holds a legal interest in a vehicle until the loan is paid off. This can be a financial institution, third party, or individual. When you buy a car using a loan, the lender becomes the lienholder until the loan is repaid. Understanding the concept of a lienholder is crucial when…
To pay off your house in 5 years, consider making additional principal payments, refinancing to a shorter term, making biweekly payments, allocating windfalls to mortgage payments, and increasing your monthly payments. These strategies can help you reduce the mortgage term and build equity faster, ultimately leading to significant savings. Paying off your mortgage early is…
Yes, you can use federal student loans for rent. Federal student aid can cover living expenses, including rent, as part of the cost of attendance. Many students use student loans to pay for housing and other necessary living costs. Using student loans for rent is a common practice, but it’s important to manage your loan…
Condos may not be FHA approved due to restrictive requirements or potential hazards. FHA loans have more lenient terms and lower down payment requirements, making them suitable for first-time home buyers. However, if a condo project contains covenants that restrict the owner’s freedom, it may not meet FHA approval. Additionally, properties situated near high-pressure gas…
A 640 credit score is considered fair or average, indicating a higher risk for lenders. This score may limit your access to credit and result in higher interest rates. Maintaining a good credit score is crucial for various financial transactions. With a credit score of 640, you fall within the fair credit range, which may…
Mortgage lenders determine loan amount based on your debt-to-income (DTI) ratio and credit score. Your DTI ratio is the comparison of your monthly expenses to your monthly gross income, and a higher credit score can lead to better loan terms and higher borrowing limits. When applying for a mortgage, lenders carefully assess your financial situation…
Interest Payable is a liability account on the balance sheet representing accrued but unpaid interest. It signifies the amount owed to lenders. When businesses borrow money, they incur interest expenses, which are recorded on the income statement. Interest payable, however, is the current amount due but not yet paid, reflecting a company’s current liabilities. It…
To apply for Balance Assist with Bank of America, you must be a U.S. Resident with a Bank of America checking account that has had regular monthly deposits for at least a year. Are you looking to apply for Balance Assist with Bank of America? In this guide, we will walk you through the process…
Yes, origination fees may be tax deductible if they are paid in connection with obtaining a mortgage. When you pay origination fees as part of a mortgage, you may be eligible to deduct them on your taxes, reducing your overall tax burden. Purchasing a home involves various costs, including origination fees. Understanding the tax implications…
Your minimum payment may be increasing due to a higher balance or increased interest charges. This can happen when you carry a higher balance or if interest is being added to the balance. Are you struggling with your credit card’s minimum payment that keeps going up? It can be frustrating and confusing to see the…