Mortgage-Resource-Library

2-1 Buydown Video for Mortgage Interest Rates

https://youtu.be/EEq6_y5D2ec A 2-1 buydown (pronounced “two one buydown”) is a feature for residential mortgages where the monthly payments for the first two years are based on temporary reductions in the mortgage interest rate. Check out our rate buy...
Adjustable Rate Mortgage Basics

Adjustable Rate Mortgage Basics

An Adjustable Rate Mortgage (ARM) is normally a 30 year fully amortizing loan that has an interest rate that will adjust once an initial fixed rate period has expired. ARM have a "fully indexed rate" that is determined by a margin and an index.

Assumable Loans

Assumable loans are mortgages that allow the new home buyer to take over the terms of the seller’s mortgage. This means the existing homeowner’s interest rate, monthly payment, loan duration, and principal balance are assumed by the new homeowner. The...

Bridge Loan

The purpose of a bridge loan is to “bridge” the gap between buying a new home before selling an existing home. Bridge loan Qualify with both Sell then do a lease back sell then rent buy with both (then recast) HELOC True bridge loa...
Closing Costs Overview

Closing Costs Overview

Here's a breakdown the home closing costs, prepaids, and money due at closing. These are applicable when buying, selling, or refinancing a home.
Estimated Closing Costs

Estimated Closing Costs

There are three components due at closing when buying a home and getting a home loan. The first is the mortgage down payment. Next are the mortgage prepaids. The third and final component are the actual mortgage closing costs for the buyer.
Closing Costs Payment Methods

Closing Costs Payment Methods

When structuring a mortgage home loan there are four ways to pay for the mortgage closing costs: pay cash at closing, roll the costs into the loan, increase the interest rate, or do a combination of the aforementioned methods.

Seller Concessions (with video)

Seller concessions allow a homebuyer to “roll-in” closing costs on a purchase home loan. It’s one of the four methods to pay for closing costs . Seller concessions can pay for all costs associated with the purchase of a home exception of the down ...

Mortgage Points for Interest Rate Buy Down

Mortgage points are mortgage closing costs  that are paid when closing a residential home loan. Mortgage points are often used for an interest rate buy down. One point equals one percent of the mortgage loan amount. Who pays for the mortgage points d...
Mortgage Prepaids

Mortgage Prepaids

The term "prepaids" includes the costs for the home's property taxes, homeowners insurance, HOA dues, and per diem interest due at closing. When purchasing or refinancing a mortgage home loan there are Closing Costs and there Prepaids.
Homeowners Insurance

Homeowners Insurance

Homeowners insurance protects a homeowner (and lender) in the event of property damage or loss resulting from an "event."   It covers four main areas: interior damage, exterior damage, loss/damage of personal belongings, and injuries sustained on the p...
Basics of Property Taxes

Basics of Property Taxes

Property taxes are are a part of home ownership and they fund the city, county, hospitals, and schools. Property taxes go directly to the taxing authorities via the mortgage's escrow account held by the mortgage servicer.
Homestead Exemption Overview

Homestead Exemption Overview

The information below is generic information regarding Homestead Exemptions for counties located in north Texas. Check with your county for specific details on amounts and the process for filing your homestead exemption.
Property Tax Deductions: Over 65 and Disabled Person

Property Tax Deductions: Over 65 and Disabled Person

The main source of property tax deductions on a home is the homestead exemption. Here, we talk about the Over 65 Tax Exemption and the Disabled Person Tax Exemption. Also, we focus mainly on the counties in North Texas.

Mortgage Escrow Account Overview

A mortgage escrow account is money held by a mortgage servicer to pay property taxes and homeowners insurance on behalf of the homeowner. These funds technically belong to the homeowner but the homeowner can't access the funds in this "piggy bank".
Escrow Account Calculations for Purchase Loans

Escrow Account Calculations for Purchase Loans

Check out our Escrow Account Overview as a precursor to this article about escrow account calculations. You may also want to check out our page on Escrow Analysis and Rebalance to learn about the escrow evaluation and re-balancing that takes place after ...
Refinance Escrows

Refinance Escrows

There is a difference between fees paid for closing (i.e. Closing Costs) and Prepaids paid at closing. Fees paid are the cost to do the loan; prepaids are items you're paying regardless of whether you refinance or not.
New Construction Escrows Explained

New Construction Escrows Explained

This article is relevant to home loans where property taxes are part of the monthly mortgage payment. A basic understanding of escrow accounts and how lenders perform an escrow analysis is required to fully comprehend how new construction escrows accounts...
Escrow Analysis and Rebalance for Homeowners

Escrow Analysis and Rebalance for Homeowners

If you currently have a mortgage AND have an Escrow Account then this page may be applicable to you. You may also want to check out our page on New Construction Escrows if you bought (or are buying) a newly constructed home.
New Construction Closing Costs

New Construction Closing Costs

New construction closing costs typically have additional fees beyond the "normal" estimated closing costs associated with an existing home. Some builders (like Windsor Homes) offer buyers financing incentives as a method to pay closing costs in order to l...

Home Loans with Upfront MIP

The government-backed home loans  of FHA , VA , and USDA  all have some form of upfront mortgage insurance premium, or upfront MIP. Each program has a unique name for this upfront fee; however, each serves the same purpose...
Mortgage Down Payments

Mortgage Down Payments

So you're buying a home and trying to determine how much you should put for a mortgage down payment. Below are the basic down-payment guidelines for various loans programs, AND a few of our opinions about how much you should (or shouldn't) put down for...
Mortgage Glossary

Mortgage Glossary

Full disclosure: this is one of the very few pages we didn't actually write on our website. This information was provided to us for use on the site so we included it in case someone needed or wanted it. Please call us if you have any specific questio...
Mortgage Insurance Overview

Mortgage Insurance Overview

Mortgage Insurance (MI) protects the lender against losses if a borrower defaults on their home loan. (i.e. MI makes sure the lender's get their money if the homeowner goes into foreclosure).

Mortgage for Self Employed (with video)

1099 Bank Statement Program DSCR Portfolio
Mortgage Servicer

Mortgage Servicer

A mortgage servicer is mortgage company that monthly payments get paid to. They may not technically own the home loan. Rather, they are the company that collects the payments and is the point of contact for the homeowner.

Mortgage Tax Deductions

One of the greater financial benefits of home ownership are the tax deductions.

Private Mortgage Insurance (PMI) Cancellation

Let’s face it, nobody likes mortgage insurance . The good news is that you can (eventually) cancel Private Mortgage Insurance (PMI). The information below is to serve as a guideline to private mortgage insurance cancellation and is not intended to se...

Purchasing Power and DTI Calculator (with video)

A homebuyer’s purchasing power is primarily determined by the debt-to-income ratio. The debt to income (DTI) for a home loan is calculated by taking the total monthly debt obligations and dividing that by the total gross monthly income. Download C...

Rate Buydown Calculator (and video)

https://youtu.be/EEq6_y5D2ecAn interest rate buydown temporary reduces a monthly mortgage payment for designed time period. Please visit the 2-1 buydown page for the mechanics and nuances of how buydowns work. All interest rate buydowns fundamentally w...

Title Company

https://youtu.be/bsKIvwp6kaIA title company is an independent, unbiased, third-party company who acts as a fiduciary intermediate during the home loan process.  The company comes into play during the setup  stage when a title is ordered. Here is a ove...

Qualified Mortgages (QM) Guidelines

The Consumer Financial Protection Bureau (CFPB) amended Regulation Z, which implements the Truth in Lending Act (TILA), to prohibit lenders from making a higher-priced mortgage loan without regard to the consumer’s ability to repay the loan.
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