Home Equity Loan vs. Home Equity Line of Credit

No matter how carefully you choose your words, home equity loan, home equity line of credit and second mortgage are all means of using the equity (amount that a home is worth (value) minus the total loan amounts against it) in a home to obtain a loan in which the home is held as collateral. If you don’t pay this loan back as agreed, the lender can come and take your house.

To Escrow or Not to Escrow, That is the Question

If you’ve got a mortgage, you’re probably well aware of what an escrow account is.  If you’ve never had a mortgage, you’ll soon find out about this option to help you in paying some of the more important mortgage-attached items in a timely manner, without the worry of coming up short when the bill comes due.

LTV (Loan to Value) Explained

Just as with every industry, folks in the mortgage and general lending industry use really big words and fancy terminology that only they understand.  Whether they do this to make themselves feel smarter, us feel dumber, or a little bit of both, we as “laymen” need to educate ourselves as to what they’re talking about.  LTV is just one of the many acronyms used to calculate your mortgage rate and terms.

Need-to-Know–Info Before You Refinance your Mortgage

If you’ve already been through the mortgage routine, you’re pretty familiar with how the whole thing goes. Instead of putting money down on your home to get a good interest rate, you’ll be looking towards your LTV, or loan to value. You’ll go from lender to lender looking for the best loan program, instead of going from house looking for the best deal. But since you’ve been here already, there are few money-saving and beneficial things that you need to know before you begin the refinancing process.

Adjustable Rate Mortgages- The Pros and Cons

At first glance, an adjustable rate mortgage, also known as an ARM, can be quite tempting to potential home buyers and refinancers looking for a great rate on their home loan. Even though these adjustable rates come with some nasty side effects later on down the road, they can offer a bit of financial relief to those enduring some troubling times.