What Is Equity?

  The simple answer when referring to real estate: equity is the value YOU own in property such as a house. It’s the difference between what’s OWED and what the property is WORTH in the current market. Contact Us Today With Any Of Your Equity Questions! The...

What Is Mortgage Insurance?

  Mortgage insurance is a policy that protects lenders against some or most of the losses that result from defaults on home mortgages. Like home or auto insurance, mortgage insurance requires payment of a premium, is for protection against loss, and is used in...

What Is A Qualified Mortgage?

  The Most Important items of a Qualified Mortgage,  Federal laws put into effect in 2014 and  supervised by the Consumer Financial Protection Bureau define lending practices and loan terms for a new category called “Qualified Mortgages.” They provide stable loan...

What Does Ability To Repay Mean?

  “Ability to repay” rules? In a nutshell, as this video shows, new laws require lenders to make a good-faith assessment of a borrower’s capacity to pay back their loan over time. It’s a longer-term view that goes beyond immediate income, debt and credit rating....

What Is The Debt-To-Income Ratio (DTI)?

  Comparing current debts against your existing income is one part of a lender’s required assessment of your ability to repay a loan. Like the video says:  debts are existing financial commitments; a car payment is a debt a grocery bill is not. To calculate your...

What Is “Prime”?

  The Prime Lending Rate – sometimes just called “Prime”  – is the interest rate that banks charge each other for overnight loans. Some consumer rates – like ARMs – are set in relation to Prime. In the US, Prime is affected by the Federal...