27 Mar 2025
By Aadil Nathoo

Temporary and Permanent Mortgage Buydowns: How They Work

Mortgage, ,
When securing a mortgage, borrowers have the option to reduce their interest rate through a mortgage buydown. This strategy can help lower monthly payments, either temporarily or permanently, depending on the type of buydown chosen. 1. Temporary Mortgage Buydown A temporary buydown allows the borrower to pay a lower interest rate for the initial years of the mortgage, with the rate gradually increasing to the original agreed-upon rate. Common Structures: A 2-1 buydown reduces the interest rate by 2% in the first year and 1% in the second year before returning to the full rate in the third year. How…
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26 Mar 2025
By Aadil Nathoo

The Difference Between FICO Score and Credit Score: How It Affects Your Mortgage and Rates

Mortgage, ,
When applying for a mortgage, your creditworthiness plays a significant role in determining your loan approval and interest rates. Two commonly referenced terms are FICO score and credit score, which are often used interchangeably but have distinct differences. 1. What is a Credit Score? A credit score is a broad term that refers to a numerical representation of a consumer's credit risk. It is calculated based on various scoring models, including FICO and VantageScore, and is derived from credit report data such as payment history, credit utilization, and length of credit history. 2. What is a FICO Score? A FICO…
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25 Mar 2025
By Aadil Nathoo

Navigating Mortgages as a Self-Employed Professional

Mortgage, ,
Securing a mortgage as a self-employed professional can be more challenging than for traditional W-2 employees, but with the right preparation and documentation, it is entirely achievable. Here's a guide to help you navigate the process: Document Your IncomeLenders need to assess your financial stability and income consistency. To do this, you'll need to provide: Tax returns for the past two years Profit and loss statements Bank statements Client invoices or contracts Consistency is key, so showing steady or increasing income over time strengthens your application. Manage Your Tax ReturnsMany self-employed individuals minimize their taxable income through deductions, but this…
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20 Mar 2025
By Aadil Nathoo

Understanding Mortgage Payment Deferral Programs

Mortgage, ,
For homeowners facing temporary financial hardship, mortgage payment deferral programs can provide much-needed relief. These programs allow borrowers to pause or reduce their monthly mortgage payments for a specific period, helping them avoid foreclosure while stabilizing their finances. What is a Mortgage Payment Deferral? A mortgage payment deferral allows borrowers to temporarily postpone their monthly mortgage payments. The deferred payments are not forgiven but are typically added to the end of the loan term or repaid through a repayment plan. Who Qualifies for a Mortgage Deferral Program? Eligibility criteria vary by lender and loan type, but common factors include: Experiencing…
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31 Jan 2025
By Aadil Nathoo

Should You Use Home Equity to Pay for College?

Mortgage, ,
Higher education can be one of the most significant financial investments you'll make, second only to purchasing a home. While federal loans are a common method for covering college costs, using your home’s equity is another option to consider. Before making a decision, it’s important to understand the pros and cons of tapping into your home equity to pay for college. The Financial Cost of College Just as most buyers need a mortgage to finance a home, many families rely on loans to fund college expenses. The average net price of college, which accounts for tuition, room, and board after…
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