Home Loan Basics
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How Mortgage Rates Are Set: Key Influencing Factors
Understanding the Factors That Influence What You Pay If you’re planning to buy a home or refinance your mortgage, you’ve probably noticed that mortgage rates fluctuate, and often. But how are these rates actually determined? Let’s break down what goes into the calculation of mortgage rates and the major factors that can impact what you…
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Mortgage Points: What They Are and When They Make Sense
When shopping for a mortgage, you may come across the term “mortgage points.” While it may sound like credit card rewards or a game score, mortgage points are actually a powerful financial tool that can save (or cost) you thousands, depending on your situation. In this post, we’ll discuss what mortgage points are, when buying…
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Pre-Qualified vs Pre-Approved: Key Differences Explained
Chances are you’ve heard the terms pre-qualified and pre-approved thrown around. While they may sound similar, they serve very different purposes in the homebuying process, and understanding the difference can help you shop smarter and with more confidence. What Does It Mean to Be Pre-Qualified? Pre-qualification is often the first step in the mortgage process.…
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Stand Alone 2nd Mortgage vs. HELOC
A HELOC (Home Equity Line of Credit) and a second mortgage are both loans that use your home’s equity as collateral, but they work differently. Here’s the key difference: 1. HELOC (Home Equity Line of Credit) 2. Second Mortgage (Home Equity Loan) Which One is Better? Interest Rate Comparison: HELOC vs. Second Mortgage Which Has…
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Understanding Escrow Accounts When Buying a Home
Buying a home is a complex process, filled with financial and legal steps to ensure a smooth transaction. One crucial component of this process is the escrow account. If you’re new to home buying, you may be wondering what an escrow account is and how it functions. Let’s break it down. What is an Escrow…
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Using Gift Funds for a Down Payment: What Homebuyers Need to Know
Purchasing a home is an exciting milestone, but saving for a down payment can be a significant hurdle for many buyers. Fortunately, gift funds can be a great way to bridge the gap and make homeownership more accessible. If you’re considering using gift funds for your down payment, it’s essential to understand how they work,…
Bay Area Homebuyer 