19
May
By Jim Hasek
Home Mortgage Tips,

How Are Mortgage Rates Determined?

If you've been paying attention to the mortgage rate news, you may be wondering exactly how it is banks decide what mortgage rates to offer. Do they just pick a number at random? Mortgage rates may seem somewhat arbitrary, but there's actually something of a science to them. So how does your bank or lender determine what your interest rate will be? Here are just some of the factors that go into the equation. Rates Always Account For Inflation First and foremost, every mortgage interest rate needs to account for inflation. Inflation is the average annual change in purchasing power…
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12
May
By Jim Hasek
Home Mortgage Tips, ,

5 Uncommon Mortgage Terms You Need to Know

When it comes to finding a new home, there are lots of complex ratios, terms, and contracts that you'll encounter - and at times, it'll feel like you're trying to navigate a minefield. Here are five mortgage terms you may not encounter regularly that you'll need to know when buying a home. Escrow: Money Held In Trust To Pay Taxes An escrow account is a bank account that your lender maintains on your behalf. When you close your mortgage, you'll need to deposit a certain percent of your annual property taxes into the escrow account, which your lender will hold…
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11
May
By Jim Hasek
Home Mortgage Tips,

How to Smartly Leverage Your Home Equity

So you've been a homeowner for some time. You've been faithfully paying off your mortgage for years, and you have a fair bit of equity built up in your home – and that makes you proud. But now, you're wondering what good equity is if you're not using it. How do you actually use home equity? And how do you leverage it to get a high return for low risk? Here are just a few options you may want to consider if you're looking for something to do with your equity. Use A Home Equity Loan Or HELOC To Pay…
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04
May
By Jim Hasek
Home Mortgage Tips,

When is Refinancing Not a Good Idea?

Refinancing your home can be a great way to reduce monthly mortgage payments or interest rates – or even pay off your debt faster. And while it is a useful tool in budgeting for millions of homeowners, a home refinance may not necessarily be useful in every situation – in fact, there are some situations where refinancing can cost you a great deal of money. So when should you skip the refinance and simply keep with the original plan? Here's what you need to know. If You've Already Paid Off Much Of Your Mortgage When you first start paying a…
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03
May
By Jim Hasek
Home Mortgage Tips,

How to Lower Your Mortgage Interest Rate

Mortgage interest rates are at historical lows right now, but they're expected to start rising soon. That's why savvy buyers are taking steps to ensure they get the best possible interest rates on the market and then lock those rates in for the long term. But even if interest rates are already low, that doesn't mean you can't reduce them further. So how can you save even more money on your monthly interest payments? Here's what you need to know. Buy Down Your Rate With Interest Points Interest points are a form of pre-paid interest that can help you to…
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28
Apr
By Jim Hasek
Home Mortgage Tips, ,

The HARP Refinance Program Has Been Extended into 2016: Here’s How You Can Take Advantage

With the Home Affordable Refinancing Program recently being extended until the last day of December, 2016, many homeowners who have found their assets in a challenging situation have been given a second chance to apply and receive an affordable mortgage. By taking advantage of the HARP program, eligible borrowers can refinance to the current mortgage rates on their homes while avoiding paying for private mortgage insurance or putting down the principal. A Quick Primer On The HARP Refinancing Program With the economy in a strong downturn in 2008, the value of millions of American homes plunged and the owners found…
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