Home Loan Education

Latest Guides

  • Before Getting a Loan: Credit Report

    Most people don't think about checking their credit report until they are on the verge of a large loan for a home or car. That's usually too late to correct any existing problems. Before your next loan, take the time to prepare by understanding what your credit report does and how improving your credit can help your next mortgage. We outline your rights under the Fair Credit Reporting Act.

  • For the New Home Buyer
    Before you go out looking at real estate, consider the following: What size will be adequate for our present, or future family needs? Do we have location needs (e.g. proximity to schools)? Is the family budget going to be able to deal with the term of a mortgage? Can we afford to buy a “fixer upper”? Will we have any other large ticket purchases (such as a car) in the near future?
  • Can You Afford a Home?
    If you are presently renting, take a look at rent versus a mortgage payment. Most rental arrangements do not include utilities, but may include "perks" such as laundry and other facilities that you'll have to factor into just what it costs to rent. Then it's time to look at the cost of buying. We tell you how much your monthly payments should be as a percentage of your income.
  • Adjustable Rate Mortgage
    When there were only fixed rate mortgages, borrowing to buy a home was a fairly straightforward matter, where you negotiated a loan that kept the same interest rate for the entire term. Now it is possible to get an ARM, adjustable rate mortgage, where the interest rates and monthly payments fluctuate at renewal time, the period of which is set by your lending institution.
  • Loans and Lock-ins
    The process for approving mortgage loan applications can take several weeks. During that time, interest rates could rise sharply, depending on market fluctuations. When talking to your lender, ask the following: How long does the average application take? How long will this application take? Has there been an increase in applications, which may slow down processing? We discuss lock-ins.
  • Home Loan and Mortgage Lock-ins
    A lock-in, also called a rate-lock or rate commitment, is a home loan or mortgage providers promise to hold a certain interest rate and a certain number of points for you, usually for a specified period of time, while your home loan or mortgage lender application is processed. We explain charges. We cover lock-in valid timeframes, and offer advice on dealing with lock-in expirations.
  • What do Lenders Look For?
    6 things creditors use to assess you: Your credit history-- Lenders look to your credit history to find out how likely you are to pay back a loan; Your ability to repay the loan; How much of your current earnings go towards paying off debt; The amount of your loan compared to the value of your home; How you plan to use the loan; Your ability to provide proof of income.
  • Your Rights With A Home Mortgage Loan
    Securing a home mortgage loan shouldn't be a stressful experience. Understanding the terms of your home mortgage loan is extremely important just in case you get into some trouble. Here is some important information regarding your mortgage. We explain Fair Debt Collection, and how your credit report is impacted. Know how to contact the credit bureau and your loan servicer if you have issues.
  • Understanding How To Get A Good Mortgage Rate
    There are also different types of mortgage rates that you can choose from and finding the one that is right for you takes some research. Whether the adjustable-rate mortgage (ARM) or fixed-rate mortgage (FRM) turns out better depends on what happens to interest rates in the future, which no one knows. We conduct a sample scenario analysis to help you see what's best for your mortgage needs.
  • Understanding Your Mortgage Options
    Mortgage rates change from company to company so it is very important that you do your research and get as many quotes as possible to get the best rates possible. Also, learn about the different types of loans you can get (ARM or FRM). We list 5 rights you have under the ECOA, and 9 rights you have under the FHA. Plus, we show 5 lender do's and 7 lender dont's when you apply for a mortgage.
  • Finding A Bad Credit Home Loan
    It's a fact that some lenders are less interested in giving loans to people with bad credit. They may charge high rates and fees to discourage applicants. To get started, sign up for a free credit report, and learn your credit score. Next, we explain why you should beware low introductory rates. Finally, we explain how to secure a home equity loan, even though you have bad credit.
  • Comparative Shopping For A Home Loan
    Comparative shopping for a home loan or mortgage helps you get the best financing deals around. Get Multiple Quotes From Different Lenders. Home loans are available from several types of lenders: Thrift institutions, Commercial banks, Mortgage companies, and Credit unions. Learn the difference between lenders and brokers. We also explain your costs: interest rates, points, and fees.
  • Making Sure Your Mortgage Loan Payments Count
    When you apply for a mortgage loan, you may think that the same lender will service your loan until you pay it off or sell your house. But today home loans - and the rights to service them - are often bought and sold. We tell you about mortgage loan servicers and escrow accounts. We explain transfer of servicing and the appropriate notices that lenders must supply regarding it.
  • Home Loan Tax Breaks?
    One of the treasured parts of home ownership is the home loan tax break you may receive. But are tax breaks enjoyed by everybody? Unfortunately, no. Some feel that tax breaks (being able to deduct a portion of your home loan interest to reduce your taxes) actually become a gift from the middle class to the rich. If your home is valued below $170,000, you may not see much of a tax break.

Latest Blog Posts

  • Friday Grab Bag - 6/26/2009
    It's Friday again, and that means it's time for the weekly SPENDonLIFE grab bag post. Here we share some of the week's more interesting tidbits from the world of credit and identity theft. Enjoy!
  • My Credit Journey - Finally, a Mortgage!
    I did not expect to be thinking about a mortgage so soon, but when you live in a house as small and filled with people as I do, changing your living situation is pretty much first and foremost on one’s mind. So after buying my car, I started looking into what I'd need to do to get a mortgage.
  • Obscure Credit Score Facts from Liz Pulliam Weston
    In this week's Personal Finance Hour, Liz Pulliam Weston shares some interesting tidbits, personal anecdotes, and FICO facts that you might not know about credit scoring.
  • Friday Grab Bag - 4/17/2009
    Each week we point you to interesting news tidbits, personal finance advice, and scam alerts that we think you’ll find interesting or helpful. Check here every Friday for informative and slightly off-the-wall takes on issues related to the economy, credit, and identity theft.
  • Are You Overpaying on Your Mortgage?
    Don’t blindly trust the information printed on your monthly mortgage statements; mortgage service companies can make mistakes, or worse, intentionally defraud you.
  • Unemployed? Citi Might Lower Your Mortgage Payment to $500
    With unemployment at a 25-year high, many aren't able to cover all of their monthly expenses, including a home mortgage. One mortgage lender has decided to give a helping hand.