Category: News

If you’ve been thinking about buying a home but feel unsure whether now is the right time, you're not alone. With mortgage rates fluctuating, headlines predicting everything from market crashes to bidding wars, and rising rent costs, it’s easy to feel overwhelmed. But here’s the truth: the “perfect time” is different for everyone—and it depends more on your personal readiness than market timing. One major factor to weigh is the cost of waiting. While you may hope for lower rates in the future, home prices in many areas continue to rise. If rates drop, demand will likely spike—bringing more competition and potentially higher prices. On the flip side, buying now might give you more negotiating power, especially in markets where sellers are motivated. Another key consideration is your financial foundation.…

Before you can shop for a home with confidence, it’s smart to get preapproved for a mortgage. Preapproval gives you a clear idea of how much a lender is likely to offer based on your financial profile. To make that determination, lenders will need to verify several aspects of your financial situation—including your income, assets, debts, and credit history. Having all your documents ready can make the process faster and smoother. One of the first things your lender will look at is your employment and income. Expect to provide pay stubs from the past 30 days, W-2s and tax returns from the last two years, and recent bank statements. If you're self-employed, you’ll need to provide additional documentation, such as business tax returns or profit and loss statements. Other sources…

If you're planning a home upgrade—whether it's a kitchen remodel, basement conversion, or a complete overhaul—a renovation loan could help you get the job done without draining your savings. These loans come in many forms, including home equity loans, personal loans, cash-out refinancing, and government-backed renovation mortgages. The right choice depends on your current equity, credit score, and the scope of your project. Home renovation loans work by providing funds specifically for improving or repairing your home. Some allow you to roll renovation costs into your mortgage when purchasing a fixer-upper, while others give you access to equity you’ve already built in your current home. Popular options include the FHA 203(k), Fannie Mae HomeStyle, and Freddie Mac CHOICERenovation loans. For smaller or unsecured projects, personal loans may be the fastest…

Closing on a home is an exciting milestone, but it’s also a process that involves a lot of moving parts. From the time your offer is accepted to the moment you get your keys, there are several steps that must be completed by both you and your lender. While the process can take several weeks, proper preparation can help things go more smoothly and reduce the chances of delays along the way. Once you reach closing day, you’ll finalize the purchase by signing a series of documents, paying any remaining closing costs, and receiving the keys to your new home. You may be joined by your real estate agent, the seller, a closing agent, and potentially an attorney. The documents you’ll review include your closing disclosure, loan agreement, mortgage note,…

When it comes to first-time homebuying, understanding what constitutes a “typical” down payment can make the process feel a lot more attainable. In 2024, the median down payment among first-time buyers was 9 percent of the purchase price—meaning on a $400,000 home, most newcomers put down about $36,000. However, loan programs tailored for first-timers often let you start with as little as 3 percent down, and government-backed options like VA or USDA loans may even require zero down. Deciding on your down payment is all about weighing the trade-offs. A 20 percent down payment is considered ideal: it typically secures the lowest interest rates and lets you bypass private mortgage insurance (PMI) altogether. But given the median amortization patterns, very few first-timers reach that benchmark right out of the gate—only…

A 3/1 adjustable-rate mortgage (ARM) offers homebuyers a fixed interest rate for the first three years of their loan, followed by annual rate adjustments for the remaining term. During the initial three-year period, your monthly payments remain consistent, giving you the predictability of a traditional fixed-rate mortgage. After those introductory years, however, the interest rate can adjust once per year based on market indexes—such as Treasury yields or the Secured Overnight Financing Rate—plus a set margin determined by the lender. Once the three-year fixed period ends, the annual rate adjustments are governed by caps that limit how much your interest rate can increase at each adjustment and over the life of the loan. For example, an initial adjustment cap might restrict your rate from rising more than 2 percentage points…

A piggyback loan—often called an 80/10/10 or combination mortgage—is a clever way to buy a home with less cash up front. Instead of a single mortgage plus private mortgage insurance (PMI), you take out two loans at closing: one for 80 percent of the home’s value and a second for 10 percent. You then cover the remaining 10 percent with your own down payment. This structure lets you sidestep PMI, which can add hundreds to your monthly payment, and keeps your main mortgage under the conforming loan limit so you avoid the stricter requirements of a jumbo loan. Beyond skipping PMI and jumbo-loan hurdles, piggyback loans let you stretch your cash reserves. In a standard 80/10/10 setup, you’re only putting 10 percent down instead of 20. Some lenders even offer…

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…

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…

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…