How the Fed Rate Increase Will Affect Mortgage Borrowers

This week, the Federal Reserve is expected to raise its benchmark rate, but it does not necessarily mean home buyers should panic. The benchmark rate hasn't been increased in a decade, making it difficult to predict how the market will react. “You’ll clearly have some reaction in the market, even though [the rate increase is] ... More

How to Avoid Private Mortgage Insurance

Taking out private mortgage insurance will increase your monthly mortgage payment. So how can you avoid it or get rid of it? One way is to take out a second mortgage. "It's not always a good idea," said Casey Fleming, a mortgage adviser for C2 Financial Corp. and author of "The Loan Guide." "If you use two loans, you will avoid ... More

Prepayment Penalties Demystified

Perhaps you received an inheritance and want to pay off your mortgage. Or maybe you cleaned up your credit and want to refinance a not-so-favorable loan. These sound like easy adjustments, right? Well, that depends. Prepaying your loan could cost a good deal of money if you have a prepayment penalty in your contract. Though it seems ... More

Do You Qualify for the Making Home Affordable Program?

By Kat DeLong Are your monthly mortgage payments increasing due to an unconventional loan? Is a job loss or frequent medical bills making it impossible for you to pay your mortgage every month? If so, the first step is to take a deep breath and find out if you qualify for relief with the government's Making Home Affordable Program. As ... More

The Truth about the Truth in Lending Act

By Kat DeLong When you sign up for a new credit card or buy a house, you are faced with pages and pages of small print - do you really read all of it? The answer is probably "no." Even though you may not go through the whole stack of paper as you sign here and initial there, some fine print should not get overlooked. Thanks to the Truth in ... More

Mortgages and Equity Loans: What’s the Difference?

By Kat DeLong Mortgages, equity lines of credit, second mortgages - these terms are often tossed around by lenders, but do you know what they really mean? It may seem like Homebuying 101, but knowing the difference between these types of loans is a crucial part of making your first home purchase or improving the one you live in right ... More