mortgage guide

  Mortgage borrowing as an independent contractor can be daunting, particularly when you're looking at a jumbo loan. Jumbo loans, loans greater than conventional loan thresholds, are in greater demand but present unique challenges for independent contractor borrowers. The good news is that knowing the most important criteria of obtaining a jumbo mortgage loan California  and being well-prepared can make a huge difference in your approval prospects. Why Jumbo Loans Are Different Jumbo loans finance high-priced houses that exceed the threshold for government-sponsored institutions like Fannie Mae and Freddie Mac. Since they do not have the standard guidelines, the lenders will have tougher qualification standards, especially for self-employed homebuyers. This is what you need to know: Income Documentation and Verification Self-employed borrowers are more closely examined on income stability and consistency. Unlike wage earners, whose income is easy to confirm through standard pa...

  The Home Affordable Refinance Program (HARP) was a lifesaver for homeowners who were unable to refinance their mortgages due to high loan-to-value (LTV) ratios. Originally introduced in 2009 and later revised as HARP 2.0, the program enabled millions of borrowers to refinance into lower-cost loans. Although HARP mortgage  expired on December 31, 2018, many homeowners are left to wonder what exists in its stead. Fortunately, replacement refinancing programs have been put into place to offer borrowers who are not eligible for a traditional refinance relief. Why HARP Was Established and Why It Dissipated HARP was established to assist underwater homeowners—those whose mortgages exceeded the worth of their homes. Such borrowers were not able to refinance traditionally, and HARP was therefore an important tool to lower monthly payments and achieve better loan terms. HARP came to an end because the housing market stabilized and property values typically increased, so fewer borrowe...

  Retirement is about enjoying life without a care in the world about money. But for many homeowners, home equity has to be tapped to maintain their lifestyle. Two of the most popular alternatives—reverse mortgages offered by a reverse mortgage broker  and home equity lines of credit (HELOCs)—are ways of tapping your home's equity, but for different purposes. Understanding how they are different can lead you to the right choice. What is a Reverse Mortgage? A reverse mortgage is a home loan for individuals 62 years and older where they can borrow part of their home equity and use it as cash. They don't make monthly payments—instead, the loan will be repaid when the homeowner leaves, sells the home, or dies. Reverse mortgages give retirees a long-term sense of fiscal security if they wish to enhance their budgets without adding to their expenses. What Is a HELOC? A HELOC is a home equity line of credit. It is a revolving line of credit secured by your home. Homeowners borrow on ...