7/1 ARM vs. 30-Year Fixed Mortgage: Pros and Cons

When shopping for a mortgage, it’s very important to pick a suitable loan product for your unique situation. Today, we’ll compare two popular loan programs, the “30-year fixed mortgage vs. the 7-year ARM.” We all know about the traditional 30-year fixed – it’s a home loan with a 30-year duration and an interest rate that [&hellip

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Why You May Want to Switch Mortgage Companies

Loyalty? Not in the mortgage business. That is, if you actually want to save money on your home loan. A few years back, an HSBC survey revealed that 52% of U.S. homeowners “switched providers” (sorry, they’re British) when obtaining subsequent mortgages. This was mainly driven (53%) by the desire to get a better deal, aka [&hellip

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Do Mortgage Payments Increase?

Mortgage Q&A: “Do mortgage payments increase?” While this sounds like a no-brainer question, it’s actually a little more complicated than it appears. You see, there a number of different reasons why a mortgage payment can increase, aside from the obvious interest rate change. But let’s start with the obvious and go from there. And yes, [&hellip

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Renting vs. Buying a Home: 55 Pros and Cons

It’s time for yet another mortgage match-up, so without further ado, here’s a biggie: “Renting vs. buying a home.” Or a townhouse for that matter… This is certainly an intimidating question, and one that’s difficult to sum up in one post, but I’ll do my best to cover as many pros and cons for each [&hellip

The post Renting vs. Buying a Home: 55 Pros and Cons first appeared on The Truth About Mortgage.

Higher Mortgage Rates May Exacerbate Already White-Hot Housing Market

You’ve seen the headlines – mortgage rates have jumped from recent all-time lows. And they’re seemingly on an upward spiral that can’t be stopped. Except, they’ve actually seen some improvement over the past few days, thanks in part to the recent stock market rout, coupled with an easing in the 10-year bond yield. Still, the [&hellip

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When Will the Next Housing Market Crash Take Place?

I’ve noticed a trend lately. Everyone’s a real estate expert. It seems the most recent crisis and recovery has turned just about every single person into a guru on all things to do with home buying and selling. I suppose part of it has to do with the fact that the massive housing bubble that [&hellip

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Locking vs. Floating Your Mortgage Rate

To mortgage folk across the country, it’s an age-old question: “Lock or float?” It’s a question loan officers and mortgage brokers get asked on a daily basis, often over and over again by panicked borrowers and first-time home buyers. And it might just be the most important answer a homeowner will come up with during [&hellip

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Why Does Everyone Want Us to Pay Down Our Mortgages?

You may have come across one of those articles lately that talks about how a couple paid off their mortgage in five years. Or some other absurdly-fast timeline. While it also sounds super enticing and perhaps inspiring, it’s often just a feel-good story that may not actually make a lot of sense financially. At least [&hellip

The post Why Does Everyone Want Us to Pay Down Our Mortgages? first appeared on The Truth About Mortgage.

Do Mortgage Brokers Offer Better Rates Than the Competition?

In your endless search to find the lowest mortgage rates on the planet, you may be wondering which route will lead to the biggest savings. Should you go to your local bank, try your luck with an online mortgage lender, visit a credit union, or consult with an independent mortgage broker/banker? You’ve Got a Lot [&hellip

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Mortgage Impounds vs. Paying Taxes and Insurance Yourself

If you’ve been researching mortgages, or are in the process of taking out a home loan, you’ve probably come across the term “impounds” or “escrows.” When you hear these seemingly scary words, the loan officer or mortgage broker is referring to an impound account, also known as an escrow account. You may even be told [&hellip

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