Whenever you approach a new topic of study – like mortgages and mortgage law – the most important thing to get down first is the "lingo." There are countless vocabulary words related to the mortgage industry, many of which you might not know the definitions. So let's do a brief vocabulary review of a few terms that your mortgage broker and real estate attorney probably know:
If you're ready to sell your home, there are a few steps you'll want to take. Some of these steps involve simple improvements that will help you increase the value of your home as well as the speed at which you'll be able to sell your property. As for the very first things you'll want to take care of, here's what you should do approximately two months before you put your home on the market:
You're excited to purchase your first home, especially because after a long search, you've finally found one you want. You've finally obtained a mortgage you can afford. The problem is, the mortgage is what's called an "adjustable rate" mortgage, i.e., it's a "ballooning mortgage." You can afford the mortgage now, but in a few years, you won't be able to afford it once your monthly payment obligation goes up.
You've probably heard the word "Ginnie Mae" before in the context of government-assisted affordable housing. You might have even thought "Ginnie" was a real person. In fact, it's an organization that seeks to create affordable housing for millions of Americans who are low- to moderate-income earners. The federal agency works to divert global financial capital toward the housing and real estate markets in the United States.
Understanding a mortgage is as important as the mortgage you end up getting. A mortgage is simply a debt instrument, but there are various kinds. Mortgages are loans used for properties, and they must be paid back according to the terms of the mortgage's preset agreement.
One thing that you might be interested in as you get older is obtaining a mortgage that you can pay with your Social Security retirement alone. Social security checks are expected to be around $1,461 per month for individuals in 2019 on average. Couples receiving this much may have enough to cover the major expenses, like health care, utilities, housing, transportation and food, but only in some areas of the nation.
If you want to buy a home, something you have to know is your debt-to-income ratio. A ratio that is skewed too much toward debt is sure to make it more difficult for you to obtain a mortgage.
There is one major difference between nonrecourse and recourse loans that you should know before you decide to take one. The primary difference is that in a nonrecourse loan, the lender cannot seek assets other than the home or property in the case that you default.
Getting the right mortgage makes a world of difference when you purchase a property. You need to know about the different options you have before you decide on the right mortgage for you, though.
One phrase you need to know if you plan to purchase a home is when you're "clear to close." Many people have heard of closing but may not know that it's necessary to get clearance before a closing can move forward.