27 Nov 2024
By Mark Feder

Why Tax Prep is Crucial for Mortgage Applicants

Taxes
When you are preparing to buy a home, tax season should be on your radar as it plays a significant role in your mortgage application process. Whether you're a first-time homebuyer or a seasoned investor, how you file your taxes can have a direct impact on the mortgage you qualify for. Understanding this connection can help streamline the process and potentially save you money on your loan. How Tax Returns Impact Your Mortgage Application The income reported on your tax returns is one of the most important factors in determining how much you can borrow for a home. For traditional…
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13 Nov 2024
By Mark Feder

Understanding the Components of Your Monthly Mortgage Payment

Mortgage
If you’re new to homeownership, you might be wondering exactly what makes up the mortgage payment you’re sending each month. Beyond just the loan amount itself, there are several different components that all factor into your monthly mortgage payment. Understanding these components not only helps you see where your money is going but can also assist you in optimizing your mortgage and possibly securing a better rate. 1. Principal The principal is the amount of money you originally borrowed to purchase the home. It represents the bulk of your loan balance and is paid down over the term of your…
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06 Nov 2024
By Mark Feder

Understanding an Appraisal Contingency in Your Home Purchase

Mortgage Tips
When buying a home, you have the option to include contingencies in your purchase contract. These protect you by setting certain conditions that must be met for the contract to remain valid. If any contingency isn’t satisfied, you can back out of the sale without penalty. Three main types of contingencies help protect buyers: appraisal, financing, and home inspection contingencies. Here's how each can impact your home buying experience. The Appraisal Contingency An appraisal contingency allows you to step back from the sale if the property appraises for less than the agreed purchase price. Since lenders typically only loan up…
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25 Oct 2024
By Mark Feder

What Is A Mortgage Par Rate And How Does It Work

Mortgage Rates
Think of the par rate as the raw, default rate offered by a lender. It’s not the lowest rate you can get, nor is it inflated by any adjustments. Lenders determine the par rate based on a variety of factors, such as current market conditions, your credit score, the loan type, and the loan amount. Discount Points: Lowering Your Rate When you're negotiating your mortgage, you can choose to buy "discount points" to lower the interest rate below the par rate. Each discount point typically costs 1% of the loan amount and can lower your interest rate by a fraction…
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