How Do Interest Rates Work?
By Jeffrey Hambright, Mortgage Loan Officer
Interest rates fluctuate constantly, and it can be difficult to understand how they work. If you're wondering what causes your rate to go up or down, or why it may differ, we have the answers. We'll break down the factors that impact your rate below.
First, it's important to understand that interest rates are not one-size-fits-all. Instead, each rate varies by person and financial history. Lower interest rates are offered for shorter-term loans, but you should make sure that your rate and loan type match your long-term goals for your home.
Rate Factors That You Can’t Control
Debt-to-Income Ratio Explained
By James Lutz, Mortgage Loan Officer
In the consumer mortgage industry, debt-to-income ratio (often abbreviated DTI) is the percentage of a consumer's monthly gross income that goes toward paying debts. However, DTIs can cover more than just debts - they can include principal, taxes, fees and insurance premiums as well. There are two main kinds of DTI discussed below.
The first DTI, known as the front-end ratio, indicates the percentage of income that goes toward housing costs, which for renters is the rent amount and for homeowners is PITI (principal, interest, taxes, and insurance).
The second DTI, known as the back-end ...
Documents Required for Mortgage Loans
By Sabrina Maas, Mortgage Loan Officer
You may be contemplating whether it is the right time for you to buy or refinance a home. Regardless of your circumstance, before you get started with the loan process, it’s always best to be organized and begin gathering the documents needed to proceed.
The mortgage loan process consists of a lot of paperwork, which includes providing documents needed for a mortgage that verify your income, employment history, address history, liabilities and assets. You provide most of this information through the application, however, there are several additional documents you may need to provide depending on the ...
Should You Buy a House or a Condo?
By Jeff Sugar, Mortgage Loan Officer
Buyers can choose between a traditional house or a condominium when purchasing a home. Aside from location, the housing type is one of the most important decisions you will have to make. Homeowners purchase the house and the land it sits on, whereas condo ownership includes only the living space inside the condo unit and a portion of the common areas of the condo building. There are advantages and disadvantages to both types of housing, and lifestyle and cost can help determine whether a single-family house or a condo is a more suitable dwelling for ...
What is Title Insurance?
By Barb Bartus, Sr. Mortgage Loan Officer
Buying or selling a home can be an exciting time. It can also be a bit confusing. Sometimes things feel like they are moving pretty fast, and sometimes some important things can go unexplained - like title insurance.
Title to a piece of property is evidence that the owner is in lawful possession of that property. In Michigan, the seller must convey marketable title to a purchaser.
Title insurance is a unique form of insurance. It protects the real estate owner and lenders against any property loss or damage they might experience because of liens, encumbrances, ...