On average, the typical American family will refinance their homes every four years. Refinancing has become more common with the low interest rates and the housing slump. Before diving headfirst into a home refinance, there are some home refinancing basics that should be looked into before any forms are signed.
There are many reasons why people look into refinancing their mortgage. The most common reason is to lower a monthly payment. The lowering of an interest rate can dramatically lower a payment and can even cut down on the length of the loan. Read the rest of this entry »
Many people who buy houses get 30-year fixed mortgages to make the purchase, because they are considered to be the industry standard. If you’re not planning on being in your house for 30 years, why is your mortgage a 30-year loan? In reality, you may not need to get the traditional 30-year fixed mortgage to buy your house.
Using ARMS for Short Term Home Ownership
If you plan on selling your house at some point in their future, it may not make sense to get a traditional 30-year fixed mortgage. One alternative is an adjustable-rate mortgage or an ARM. Read the rest of this entry »
When you buy a house, you are bound to come across the term “escrow” at some point in the process. In the real estate arena, escrow could actually mean one of two different things, depending on the situation. Understanding how escrow works is essential if you want to make sure that the real estate deal is being handled appropriately. What is Escrow? It is basically a third party that handles things on your behalf when working with a third-party. They are there to ensure the integrity of transactions and to make sure that everyone is taken care of as they should be.
So how does escrow work? Read the rest of this entry »