Subordination in finance refers to the order of priorities in claims for ownership or interest in various assets. It determines the ranking of debts for repayment in the event of foreclosure or bankruptcy. Understanding subordination is crucial for lenders, borrowers, and property owners as it impacts the risk and priority of debt repayment. Whether it’s…
There are three types of reverse mortgages: Home Equity Conversion Mortgages (HECM), proprietary (or “jumbo”) reverse mortgages, and single-purpose reverse mortgages. Reverse mortgages come in three main types: Home Equity Conversion Mortgages (HECMs), proprietary (or “jumbo”) reverse mortgages, and single-purpose reverse mortgages. Each type has its own eligibility requirements and features, providing options for different…
A repossession won’t directly prevent you from getting a house, but it can make it more challenging. Repossessions can impact your credit and affect loan approval, including for a mortgage. When it comes to buying a house, having a repossession on your credit report can present obstacles. While it may not completely disqualify you from…
Refinancing can lead to increased monthly mortgage payments and higher long-term costs. It’s important to weigh the potential downsides before making a decision. Refinancing your mortgage can be a tempting option, offering the potential for lower monthly payments and reduced interest costs. However, it’s crucial to carefully consider the potential drawbacks before moving forward. While…
Lenders such as Chase, Citi, and Capital One primarily use TransUnion for credit reports. They may also pull reports from multiple bureaus, so confirming with the issuer directly is recommended. When it comes to borrowing money or obtaining credit, understanding which credit bureau lenders use is essential. TransUnion is one of the major credit bureaus…
A credit card balance transfer fee is a charge imposed by a lender when you transfer existing debt from one credit card to another. It is typically a percentage of the amount being transferred, ranging from 3% to 5%. This fee is in addition to any interest charges that may apply. Credit card balance transfer…
To get a Mortgage Credit Certificate (MCC), contact your state’s housing agency or a participating lender. Complete the application and meet the eligibility criteria to qualify for the certificate. The Mortgage Credit Certificate (MCC) program offers a valuable opportunity for homebuyers to receive a federal tax credit. By obtaining an MCC, eligible individuals can benefit…
Refinancing a house typically takes anywhere from a couple of days to just over a month. The timeline for refinance settlement is similar to any other type of property. Refinancing a home can be a strategic financial move that offers various benefits. From securing a lower interest rate to tapping into home equity, the reasons…
A rate lock is an agreement that keeps your mortgage interest rate unchanged from the initial quote to closing. It provides stability and protection against potential rate increases during the mortgage process. This ensures that your monthly payments remain consistent and predictable, offering peace of mind throughout the homebuying journey. When you lock in a…
An AVM in real estate stands for automated valuation model, which is a computer algorithm that estimates a home’s value using available data. These models can provide different estimates for the same home, depending on their programming, but a professional home appraisal is more accurate. Automated Valuation Models (AVMs) are statistically based computer programs that…
To get rid of cash advance interest, pay off your entire credit card balance as quickly as possible. This will prevent interest from accruing on your cash advance. Are you struggling with cash advance interest on your credit card? Many people face the same challenge, but there are effective strategies to address this issue. Cash…
Yes, underwriters can make exceptions depending on the specific circumstances of the loan application. Underwriters have the authority to deviate from standard lending policies in certain situations. However, these exceptions are not common and are typically made judiciously. When it comes to the mortgage underwriting process, underwriters have the discretion to make exceptions to the…
Student loans should not be forgiven because it would disproportionately benefit higher-income Americans and could lead to a rise in total outstanding student debt. Furthermore, forgiving student loans would come at a high cost to the economy and could offer only a temporary reprieve. Student loan forgiveness has been a topic of debate, with proponents…
Residual interest, also known as trailing interest, is the interest that accrues on a credit card balance after the statement is issued but before the balance is repaid. It builds up daily between the time the new statement is issued and the day the payment posts. This interest is not reflected on the current statement….
When meeting with a mortgage broker, it’s important to ask about their regulation status and fees. Understanding the best mortgage type and available lenders is crucial for informed decision-making. Additionally, inquiring about potential restrictions and the possibility of changes in interest rates will provide valuable insights into your mortgage options. It’s also essential to discuss…