Recently, a client of mine who is looking to buy a 2-4 unit investment property asked a common question regarding financing. He asked, “Does PMI differ from bank to bank?” If you are unfamiliar with PMI, it is an acronym for “private mortgage insurance”. Investopedia defines private mortgage insurance as: a risk-management product that protects lenders […]
Take Fannie Mae Online Classes and Save up to 3% on Closing Costs
Buying a home can be a daunting process, especially for those of you who are first time buyers. New Fannie Mae online classes have been developed to help people looking to buy their first home. Fannie Mae has launched what they are calling “HomePath Ready Buyer™”. This comprehensive online home buyer education course covers both the complexities […]
Will Inflation Affect Home Buying?
Mortgage rates have been low for many years now. Even recently, when they’ve started to rise, they’ve fallen back down again. But we all know this can’t last forever. In fact The Federal Reserve Chair, Janet Yellen, recently indicated rate increases can be expected in the not too distant future. Yellen may not have mentioned mortgage rates specifically, […]
5 Surprising Things That Don’t Affect Your Credit Score
When becoming educated about what affects your credit score, it’s just as important to know things that don’t affect your credit score. Your credit score is a key component to funding your home purchase. Here’s a look at five things that surprisingly won’t affect your credit rating either positively or negatively. 1. Certain Monthly Payments Paying […]
What’s the Difference Between a Fully and Partially Amortizing Loan?
If you’ve dealt with borrowing money, you have likely heard of an amortizing loan. An amortizing loan is one that is paid back in installments over time. Almost all loans – unless they are paid back in a single payment – are amortizing in one way or another. There are two main types of amortizing loans: fully […]
What’s the Difference Between a Jumbo Loan and a Conforming Loan?
If you are house hunting or own a home, you’ve probably heard about jumbo loans and conforming loans. So what is the difference between a jumbo loan and a conforming loan? Conforming Loans Meet Fannie and Freddie’s Guidelines A conforming loan is a mortgage that meets the underwriting guidelines (credit, income, assets requirements) of Fannie Mae and Freddie […]