Detailed mortgage information to help home buyers and homeowners.
Co-Signing A Mortgage A little-known way to help you obtain a mortgage is having a co-signer on your loan application. Co-signing a mortgage is a great way to help a family member or friend buy a home or refinance a current mortgage. Below I’ll cover what a mortgage co-signer is (aka a non-occupying co-borrower), the … Read more
What Is A Mortgage Underwriter? A mortgage underwriter is an employee of a mortgage company that reviews your loan application and decides if you meet the company’s lending requirements. If you do meet their requirements, the underwriter will issue an approval. If you do not meet the company’s requirements, the underwriter will turn down the … Read more
Pre-Payment Penalty When you buy a home or refinance a current mortgage, you’ll always want to ask your loan officer if your new mortgage has a pre-payment penalty. In fact, it should be one of the first questions you ask when shopping around for quotes. Below, you’ll discover what a pre-payment penalty is, how it … Read more
Second Mortgages Explained If you are a homeowner, you’ve probably heard the term “second mortgage.” It’s a popular home loan product and provides numerous benefits to those looking to buy a home or as a tool for debt consolidation or home improvements. Below I cover what a second mortgage is, the available types of second … Read more
Loan-To-Value Ratio – Why It Matters Many factors impact your mortgage rate, and one of the most important factors underwriters consider is your loan-to-value ratio. When buying a home or refinancing a mortgage, it’s essential to know what impact your loan-to-value (LTV) ratio will have and how it will be used by underwriting. Below I … Read more
Mortgage Subordination Explained A mortgage subordination is when a lien holder of a fixed-rate second mortgage or a Home Equity Line of Credit (HELOC) agrees to remain in a “second position” on your property title while a new first mortgage is put in place. This process occurs when you refinance your first mortgage. This means … Read more
Debt-To-Income Ratio Debt-to-income ratio is a calculation performed by the person underwriting your home loan application. It compares the total amount of your monthly debt payments divided by the total amount of your monthly income. The comparison enables the underwriter to determine your ability to repay the mortgage you’re applying for1. Understanding the importance of … Read more