10
Sep
By Todd Grey
Mortgage, ,

The Difference Between Mortgage Prepayment and Payoff

As a homeowner or prospective buyer, understanding the intricacies of mortgage management can save you time, stress, and potentially thousands of dollars. Two key concepts that often confuse borrowers are mortgage prepayment and mortgage payoff. While both strategies can reduce the overall interest paid and shorten the loan term, they function differently. Let’s break down what each term means and how they can affect your mortgage journey. What Is Mortgage Prepayment? Mortgage prepayment occurs when you make payments toward your mortgage above and beyond the required monthly installment. This extra payment goes directly toward reducing the principal balance of your…
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14
Aug
By Todd Grey
Mortgage, ,

What is a Flex Payment Mortgage?

Understanding your options when shopping for a mortgage is crucial to making the best financial decisions. One option that is not well known is the Flex Payment Mortgage. But what exactly is it, and how can it benefit you? Understanding the Basics First and foremost, a Flex Payment Mortgage is a type of home loan that offers borrowers the flexibility to adjust their monthly payment amounts. Unlike traditional mortgages with fixed monthly payments, this mortgage type allows you to choose from several payment options each month. These options typically include a minimum payment, an interest-only payment, a fully amortizing payment,…
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13
Aug
By Todd Grey
Bankruptcy History, ,

Getting a Mortgage After Chapter 13 Bankruptcy

Filing for Chapter 13 bankruptcy can be a challenging experience, but it doesn't mean the end of your dreams of homeownership. While the path to securing a mortgage after Chapter 13 might seem daunting, with careful planning and dedication, it's entirely possible. Here’s how you can prepare yourself for a successful loan application and rebuild your dream home. Understanding Chapter 13 Bankruptcy First and foremost, it's essential to understand what Chapter 13 bankruptcy entails. Unlike Chapter 7, which involves liquidating assets, Chapter 13 allows you to create a repayment plan to pay off your debts over three to five years.…
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16
Jul
By Todd Grey
Home Buyer Tips, ,

Understanding Warrantable vs. Non-Warrantable When Purchasing a Condo

When you're shopping for a condo, there's a bit more on your plate than just the typical homebuying concerns like credit scores, interest rates, and loan programs. A crucial aspect is understanding the role of the Homeowners' Association (HOA) and whether the condo is warrantable or non-warrantable. This distinction can significantly impact your mortgage process and future as a condo owner. Warrantable Condos: What You Need to Know A condo is considered warrantable if it meets the standards set by Fannie Mae and Freddie Mac, the two main government-sponsored entities in the mortgage industry. These entities buy mortgages on the…
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02
Jul
By Todd Grey
Mortgage, ,

Understanding Graduated Payment Mortgages

When it comes to buying a home, you will find many mortgage options available. One of the lesser-known but potentially advantageous choices is the Graduated Payment Mortgage (GPM). Let's discuss what GPMs are, how they work, and how they differ from other mortgage options. What is a Graduated Payment Mortgage? A Graduated Payment Mortgage is a type of home loan where the payments start low and gradually increase over time. This structure can be particularly appealing to those who expect their income to rise steadily in the future. The idea is to match your mortgage payments with your anticipated financial…
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