1. A Jumbo Loan Exceeds Conforming Loan Limits for High-Priced Homes A jumbo loan is a mortgage that exceeds the conforming loan limits set by Fannie Mae and Freddie Mac. Conforming loans are those that meet the guidelines for government-backed financing. If you’re buying a property in an area where home prices are high, you might need a jumbo loan to cover the cost. Jumbo loans […]
1. A Balloon Mortgage Starts With Low Payments—Then Ends With One Big Lump Sum With a balloon loan, you typically get a low monthly payment for 5 to 7 years. But when that period ends, you owe the entire remaining loan balance all at once. That large final amount is called the “balloon payment” It’s due whether or not you’re ready Most
1. A Licensed Appraiser Assesses the Property’s Market Value Once you’re under contract, your lender will order an appraisal from a licensed, independent appraiser. During the visit, they’ll evaluate: The home’s location The size, layout, and features The condition of the home and any upgrades Recent comparable sales (aka “comps”) in the areaThe goal? To estimate fair market value based on data—not emotion. Understanding what you can
Homeowner & Buyers Guide: 3 Reliable Ways to Find Out What a Home Is Worth Whether you’re buying, selling, refinancing, or just curious—knowing your home’s value is a powerful piece of the puzzle. But not all estimates are created equal. Here are three ways to get a solid sense of your property’s worth—plus when to
1. What Is a Deed-in-Lieu of Foreclosure A deed-in-lieu of foreclosure is an agreement between a homeowner and their lender where the homeowner voluntarily transfers the property’s title to the lender to avoid foreclosure. 🏠 Key points about this process: The homeowner surrenders ownership of the home to the lender.This option can help prevent the
1. An Assumable Mortgage Allows You to Take Over the Seller’s Loan With an assumable mortgage, instead of applying for a new mortgage, you can take over the seller’s existing mortgage—including the interest rate and remaining balance. This means you’ll pick up where the seller left off, keeping their favorable loan terms. If the seller has a lower interest
1. A Title Commitment Outlines the Conditions for Title Insurance A title commitment is a document issued by a title company that details the conditions under which they will provide title insurance. It serves as a preview of the title insurance policy you’ll receive after closing. This insurance protects you in case there are any title disputes after you purchase the