He applies the lessons he's learned from that financial balancing act to offer practical advice for personal spending decisions. Written by Katherine Watt Writer Read more from Katherine Katherine Watt is a CNET Money writer focusing on mortgages, home equity and banking. She previously wro...
Adjustable-rate mortgages (ARMs) are great for minimizing your monthly mortgage payment in the early years of owning a home. But when interest rates start to rise, the monthly payments on an ARM may go up as well. To avoid increasing payments, you can switch to a fixed-rate mortgage. Whi...
Home equity investment agreements allow you to tap equity without any monthly payments or interest rates. Investors give homeowners a lump sum in exchange for a share in the future value of their homes. When the homes are sold (or when the contract term ends), the investors receive their sha...
There’s a lot more to gain from a refinance than a lower interest rate. Home values are at an all-time high, which means home equity has increased for many homeowners. That’s good news if you want to tap your equity using a cash-out refinance. It’s also good news for homeowners...
Additionally, the higher your credit score, the more likely you are to qualify for the lowest interest rate available. Examine your equity. If you have at least 20% home equity, you could end up dropping any PMI payments you have. How much equity you have could also determine which ...
More advice for self-employed mortgage refinancing Here are some other tips to keep in mind: Allow plenty of time to close. I had a 45-day rate lock and needed almost all of those days to resolve my income verification issue. Prepare all your information. Be ready to provide more than ...
This might be especially true if the value of your home has increased significantly since you took out your original mortgage. Let’s learn more about what a cashout refi is, the pros and cons, and how this loan option can quickly replenish your savings account to pay for other bills. ...
“Go for the permanent payment affordability of the fixed-rate loan,” McBride says. A fixed rate can also help consumers budget more easily. It makes sense to get a fixed-rate loan if you plan to stay in your home for a long time, McClary says. “If it’s possible that rates could...
With cash-out refinancing, you can take advantage of the equity in your home to access money you can use today for your personal financial goals. You replace your current loan with a higher value loan and take out a portion of your home’s equity as cash. ...
Like traditional mortgages, cash-out refinance loans can either have a fixed or adjustable rate and can be for various terms, generally up to 30 years. Homeowners can usually borrow up to 80% of their home’s value with a cash-out refinance; however, some loan programs may allow higher am...