Category: News

familiar with private mortgage insurance (PMI). This insurance is typically required by lenders to protect themselves in case a borrower defaults. For a few recent tax years, homeowners had the opportunity to deduct PMI premiums on their federal returns, offering some relief on their overall tax burden. However, that deduction expired after the 2021 tax year, and currently, PMI is no longer tax-deductible. Between 2018 and 2021, eligible homeowners who itemized their deductions could write off PMI premiums. This was a welcome break for many, especially those paying hundreds annually in PMI costs. If you didn’t take advantage of the deduction during those years, there's still a chance: you may be able to file an amended return and claim those missed deductions. Just keep in mind that your mortgage must…

Buying a home is often a team effort, whether it's with family, friends, or business partners. A common question among potential homebuyers is how many people can join forces on a mortgage. Although there's technically no legal limit, most lenders typically allow up to four borrowers on a conventional mortgage. This limitation usually comes down to underwriting software, which comfortably accommodates up to four borrowers without requiring manual handling. Applying for a mortgage with co-borrowers offers several great benefits. It can make qualifying for a loan easier, as combined incomes and credit scores often increase your buying power and help secure more favorable mortgage terms. Plus, sharing costs makes homeownership more affordable and accessible. This arrangement works especially well for multi-generational households, co-living setups, or friends investing together. However, having…

Refinancing a second home or investment property can be a smart financial move, but it’s essential to understand the process and requirements before making a decision. Homeowners and investors refinance for various reasons, such as securing a lower interest rate, reducing monthly payments, or accessing equity through a cash-out refinance. However, refinancing a second home or rental property comes with additional considerations compared to refinancing a primary residence. Lenders impose stricter qualification requirements, including higher credit score thresholds, lower loan-to-value (LTV) limits, and additional cash reserves. One of the most common reasons to refinance a second home or investment property is to take advantage of lower interest rates or change the loan term. If your credit score has improved since you originally obtained your mortgage, you may qualify for a…

Saving for a down payment can sometimes feel like a constant uphill climb. Between rising home prices, elevated interest rates, and everyday financial demands, it’s easy to see why many would-be buyers feel stuck. Even with careful budgeting, unexpected costs and competing priorities can easily derail the goal of buying a home. The good news is that with a few strategic moves, you can get back on track and make homeownership a reality sooner than you might think. One of the main roadblocks for many first-time buyers is simply keeping up with everyday expenses while trying to stash extra cash for a future house. Rents have climbed steadily in recent years, and credit card debt continues to be a burden for many households. On top of that, grocery bills, gas…

Mortgage rates edged lower recently, with the average 30-year fixed rate now hovering around 6.84 percent—down from around 7.0 percent just a short time ago. This slight drop marks one of the lowest levels seen in recent months, creating an opportune moment for buyers and those looking to refinance. At the same time, many lenders report that the average discount and origination points remain relatively manageable, offering further incentives for prospective borrowers to explore their options.

  When it comes to mortgages, there’s no shortage of misconceptions—and believing them can cost you thousands of dollars or cause unnecessary stress. Whether you’re buying your first home, upgrading, or refinancing, it’s essential to separate fact from fiction. Here are some of the most common mortgage myths I hear—and the truth behind them. ________________________________________ 🏠 Myth #1: You Need a 20% Down Payment to Buy a Home Truth: While putting 20% down helps you avoid private mortgage insurance (PMI), many loans require far less. First-time homebuyer programs, FHA loans, and VA loans often allow down payments as low as 3%. Waiting to save 20% might delay your dream of homeownership unnecessarily.   👉 Are you a homebuyer with a signed contract? Get your mortgage rate here! ________________________________________ 💳 Myth…

A balloon mortgage is a unique type of non-qualified (non-QM) home loan that offers lower monthly payments upfront but requires a large lump sum—known as a balloon payment—at the end of the loan term. Typically structured for five, seven, or ten years, balloon mortgages are appealing for those looking for short-term affordability. However, they also come with risks, including higher interest rates and the potential for financial strain if the borrower cannot afford the final payment. Since these loans don’t conform to the Consumer Financial Protection Bureau’s standards for a qualified mortgage, they are less common and often come with more flexible application requirements. How Does a Balloon Mortgage Work? Unlike traditional mortgages, balloon loans can have different payment structures depending on the lender. Some loans require both principal and…

  Typically, sellers choose spring and summer as the time to list their homes, as most buyers are out in the market looking to buy a home. 👉 This blog post is to help anyone currently looking to buy a home and do it in the smartest possible way. While every mortgage company provides more or less the same thing—a rate quote, loan costs, and a willingness to make themselves your new best friend so you don’t “shop elsewhere”— We are different. Yes, we’ll give you a rate quote and explain all the loan costs, but our focus is on helping our clients create wealth for their families by using the money in their pockets intelligently to buy real estate. (And no, we don’t really care so much about being…

Recently, I helped a client refinance their mortgage by reducing their rate from 7.75% to 6.875%, saving them $373.10 per month—with zero dollars in loan costs. Everything was going smoothly until the borrower reviewed the documents and saw the Cash to Close number. Even though they could clearly see the no-loan-cost refinance, they were stunned by the cash to close amount and asked for further clarification. This is a common concern, so I’m writing this post to clearly explain what loan costs are, how to use lender credits to reduce or eliminate them, and what to expect with cash to close. ________________________________________ Loan Costs: The One-Time Fees That May or May Not Apply When refinancing, lenders typically charge one-time fees that include: ✅ Appraisal Fees ✅ Lender Fees ✅ Title…

No-doc loans (short for “no documentation” loans) can sound like a dream come true for borrowers who want to avoid the usual hassle of paperwork. Unlike traditional mortgages, which require reams of income and asset statements, pay stubs, and tax returns, no-doc loans promise a more streamlined process. But as easy as they might sound, these types of mortgages come with unique requirements, higher risks, and often steeper interest rates. In a typical mortgage application, lenders scrutinize everything from your credit score to your debt-to-income ratio (DTI) and employment history. With a no-doc loan, the name says it all: You’re not asked to provide detailed paperwork to prove your income. Instead, you generally just state what you earn — though be aware, lenders still run credit checks and require some…