How Does a Home Equity Line of Credit Work? A home equity line of credit (HELOC) is a revolving line of credit that allows homeowners to borrow against their home’s equity as needed. Unlike a traditional loan, it provides ongoing access to funds during a draw period, followed by a repayment phase. While HELOCs typically…

For many potential home buyers who delayed their purchasing decisions until after the election results, understanding the housing market under Trump has become a top priority. Trump’s economic-focused campaign included promises to combat inflation, reduce regulations, and implement new trade policies, which could significantly influence the housing market Trump inherits. With the election uncertainty now…

Let’s break down the differences between a home equity loan vs second mortgage and also explore when a HELOC might be your best bet. Discover these key differences to find the solution that works for your financial goals. What Is a Second Mortgage? A second mortgage is a loan you take out against the equity…

How a Home Equity Loan Works A home equity loan lets you borrow money by using your home’s equity as collateral. Equity is the difference between your home’s value and what you still owe on your mortgage. For example, if your home is worth $300,000 and you owe $200,000, you have $100,000 in equity. A…

Can I Refinance a Home Equity Loan? Yes, you can refinance a home equity loan (HELOAN). A HELOAN is a type of loan that lets you borrow a lump sum of money based on the equity you’ve built in your home. A home equity loan typically has a fixed interest rate and predictable monthly payments.…

How Do Home Equity Loans and HELOCs Work? Before diving into specific requirements, it’s important to understand how these lending options work. A home equity loan works similarly to your first mortgage, providing a lump sum that is repaid in fixed monthly installments. The only difference is that while your first mortgage could only be…

Why Refinance Your Reverse Mortgage? There are several compelling reasons that make a reverse mortgage refinance worthwhile, and knowing when to refinance can help you maximize the benefits. Here are situations when it’s beneficial to refinance your reverse mortgage: Lower interest rates: If market rates have dropped significantly since you got your reverse mortgage, refinancing your mortgage could help you…

How Are Mortgage Rates Determined? What determines mortgage rates is a complex interplay of market forces, economic conditions, and individual circumstances. While the daily rate movements might seem random, there’s actually a clear logic behind how these rates are set. So, what are mortgage rates based on? The process combines three core elements: the overall…

Cash-Out Refinance A cash-out refinance allows you to replace your existing mortgage with a new one for a larger amount, giving you access to the equity you’ve built in your home. This popular option is often used for goals like consolidating debt, covering major expenses, or funding home renovations. With a manageable refinancing timeline and…

Why Refinance a Mortgage? Refinancing a mortgage can offer several advantages, depending on your current financial situation and goals. Here are a few reasons why homeowners might choose to refinance: Interest rates have gone down: One of the most common reasons to refinance is to take advantage of lower interest rates. If market rates have…

Why Refinance Your Mortgage? Refinancing your mortgage can be a strategic financial decision that helps you save money and achieve your financial goals. Here are some common reasons homeowners choose to refinance their mortgages. Eliminate Private Mortgage Insurance (PMI) A common reason for refinancing is to remove private mortgage insurance (PMI). PMI is typically required…

General Home Buying FAQs Why buy a home? Buying a home is one of the most significant financial decisions you’ll make, offering both personal and financial benefits. Homeownership builds equity over time, potentially providing substantial returns on investment through property appreciation. Additionally, owning gives you the freedom to customize your space and establish roots in…

Using your home equity to pay off debt might sound like a big step, but with the right approach it can give you the breathing room you need to get your finances back on track. Read on to learn more about how a home equity loan works for debt consolidation. How to Use a Home Equity Loan…

But what is a hard money lender? Hard money lenders offer loans based primarily on the value of the property being purchased or used as collateral. This approach can help borrowers secure financing when traditional lenders hesitate or take too long. Whether you’re a seasoned real estate investor or exploring property financing for the first…

Understanding the concept of bonus depreciation and its practical application can help you capitalize on this opportunity and determine if investing in real estate now is a good time. So, what is bonus depreciation, and how does it affect you as an investor? Keep reading to learn more about bonus depreciation and how it works. …

Read on to learn more about BRRRR loans and explore how this approach can open doors to lucrative opportunities.  What Is the BRRRR Method? BRRRR stands for buy, rehab, rent, refinance, and repeat. The BRRRR real estate investment method is a strategy investors use to build a real estate portfolio and maximize returns by following…

First-time and even seasoned home buyers typically ask their mortgage lender many questions during the home buying process, such as “What is the interest rate on a mortgage?” and “What factors determine mortgage interest rates?”. Fortunately, the experts at Griffin Funding can help answer these questions and more. Let’s take a deep dive into how…

Offering you the best of both worlds, a self-directed IRA for real estate, or SDIRA, offers the preferential tax treatment of an IRA with the flexibility and autonomy to invest in real estate opportunities. Whether you want a fix-and-flip property, a long-term rental opportunity, or a short-term vacation rental solution, a self-directed IRA for real…

That is exactly what high-net-worth lending is. It includes a more personalized level of service that is often customized to someone’s entire financial life. Not only do these types of loans usually come with lower interest rates when compared to traditional ones, but they also have longer repayment periods. This guide will cover high-net-worth lending…

In this article, we’ll discuss 5-8 unit commercial multifamily financing, exploring the unique opportunities associated with this niche real estate market. Whether you’re a seasoned investor looking to expand your portfolio or a newcomer exploring the potential of commercial multifamily properties, understanding multifamily financing is crucial for making informed decisions.  Keep reading to learn more…

This insurance serves as a safety net, offering financial protection in the face of unforeseen events that could damage or destroy your home. Understanding what homeowners insurance covers is essential for any new homeowner, as it provides peace of mind and shields against the financial consequences of unexpected events, from natural disasters to theft or…

With the right ADU loan, you can build the kind of ADU you want and start earning passive income. In this article, we’ll explore various methods and loans for financing ADUs to help you capitalize on this growing trend. What Is an ADU? An ADU is a secondary living space located on the same property…

One significant hurdle that borrowers may encounter is a prepayment penalty, which is a fee that’s triggered by paying off your mortgage early. While the idea of settling a debt ahead of schedule may seem like a smart financial move, lenders often include prepayment penalty clauses in mortgage agreements to protect their interests and ensure…

Knowing the differences between contingent vs. pending is crucial, as it can help you understand how close a property is to being sold. These terms can give you important clues about a property’s journey, guiding your expectations as you navigate the process of finding your dream home. Keep reading to learn more about contingent vs…

So, what is an origination fee? In this article, we’ll discuss what a mortgage origination fee is, how it impacts your loan, and how you can keep your costs down. What Is a Loan Origination Fee? A loan origination fee is a charge imposed by a lender for the administrative costs associated with processing a…

Beyond the practical necessity of having a place to call home, purchasing real estate is often viewed as a symbol of stability and achievement, signifying a step toward a more rooted and secure future. The decision goes beyond the transaction of buying property and entails an evaluation of priorities, lifestyle choices, and the desire to…

In this article, we’ll discuss the key benefits and considerations associated with refinancing an investment property. From evaluating your options to the loan process, we’ll provide you with the knowledge and insights you need to make strategic decisions that align with your investment goals. 8 Reasons to Refinance an Investment Property When you first start…

An assumable mortgage is when the buyer takes over, or “assumes”, the seller’s home loan. Some considerations must be taken into account to understand how assumable mortgages work. The seller and buyer must both agree to consider and negotiate an assumable mortgage. Buyers must consider the lender’s requirements and specific loan qualifications once the seller…

So what is a 1031 exchange in real estate? While the concept of a 1031 exchange might sound appealing, its intricacies and the associated rules require a thorough understanding to harness its full potential. In this article, we’ll discuss the fundamentals of 1031 exchanges, including the rules and regulations governing them. Whether you’re a seasoned…

For the new investor, the variety of real estate investment options can be overwhelming. Residential properties, commercial spaces, raw land, REITs — each type of investment has unique challenges and rewards. Knowing where to invest, when, and how to manage the investment can be the difference between a lucrative venue and a costly mistake. However,…

Purchasing a home is one of the most significant financial decisions most people make in their lifetimes. With the wide availability of mortgages and various options among lenders, the process can be exciting and overwhelming, even if you’ve purchased a home before. It’s crucial to know what questions to ask a mortgage lender to ensure…

One of the most popular ways to access your home equity is to use a home equity loan (HELOAN). Home equity loans are structured as second mortgages, but they can be especially beneficial for homeowners looking to finance large expenses. Since the loan is secured by the home itself, HELOANs often come with lower interest…

Many corporations and individuals strive to maximize their money by avoiding paying local and federal taxes. A tax haven is a jurisdiction known for offering minimal tax liabilities, like states without income taxes. While often associated with far-off islands, the concept of a tax haven is also relevant in the US. Some large businesses and…

The right mortgage program can help you save money while paying off your debt. While 30-year mortgages are the most common, they’re not your only option. Some borrowers may prefer a short-term mortgage that allows them to save on interest payments and pay off their home in a shorter amount of time. Unfortunately, short-term mortgages…

Your home isn’t just where you live—it’s an investment. As with any asset, the goal is to enhance its value over time. Refinancing for home improvements allows you to channel new funds into home renovations or upgrades to increase its value, allowing you to sell it for more in the future.  In the past couple…

The adjustable-rate mortgage (ARM) is characterized by its variable interest rates that shift with market conditions. Initially, ARM loans often come with lower interest rates than fixed-rate mortgages, making them an appealing choice for many homebuyers. However, as time goes on and initial rate periods expire, homeowners with ARMs might face fluctuating interest rates, resulting…

When considering homeownership, many people think beyond the immediate shelter and security of a home and lean into its potential as an investment vehicle. Over the years, real estate has proven to be a cornerstone of many wealth-building strategies and a tangible asset that carries emotional and practical value. The dynamics of the housing market,…

Understanding your mortgage can be challenging, especially if you’re a first-time home buyer. Among the many details to consider, understanding when your first mortgage payment is due is crucial to budgeting and overall financial planning. If you’re wondering, “When is my first mortgage payment due,” you’ve come to the right place. In this article, we’ll…

When buying or selling a house, you’ll often hear the term “fair market value” or FMV. This concept plays a crucial role in shaping the dynamics of real estate transactions. FMV helps sellers understand the right price point to list their property to ensure it’s neither overpriced nor undervalued. On the other hand, buyers use…

How funds are handled in real estate transactions varies based on various factors, including location. Understanding these differences, such as the concept of dry funding, can help you streamline the buying or selling experience. Different states have adopted either a wet or dry closing practice, impacting the timeline and mechanics of closing procedures. As you…

Homeownership is a significant investment. Like all major financial commitments, you’ll have several responsibilities when you own a home, primarily keeping up with mortgage payments. Due to unforeseen circumstances, such as job loss, medical emergencies, or other financial hardships, homeowners may struggle to make timely mortgage payments. In these situations, they might encounter terms like…

A reverse mortgage allows homeowners over the age of 62 to leverage their home’s equity without selling or moving. These loans offer seniors a method of supplementing their retirement income, paying for medical expenses, or undertaking home improvements. Instead of the homeowner paying the lender like a traditional mortgage, in a reverse mortgage, the lender…

For many, the home-buying journey is accompanied by a realtor who acts as a guide, offering expertise on market conditions, property evaluations, and negotiations. Realtors have a depth of knowledge and experience and can provide invaluable support when buying a house. However, many buyers may walk this path solo and forgo the conventional route of…

When unexpected events happen, homeowners might face difficulties in making regular mortgage payments. One tool at their disposal during unforeseen financial crises is mortgage forbearance. But what is the meaning of mortgage forbearance, how does it work, and who qualifies? There are various safety nets that ensure unexpected events don’t immediately result in the loss…

Navigating the world of mortgages can be complex, especially if you’re a non-U.S. citizen looking to purchase property in the United States. Various factors come into play, such as visa status, residency, and the property’s intended use. Can a non-U.S. citizen get a mortgage loan? Thankfully, specialized mortgage loan types are tailored to accommodate non-U.S.…

Homeownership is a dream for many, symbolizing stability, investment, and the creation of lasting memories. However, before you can pick up the keys to your dream home, there’s a significant hurdle to overcome: securing a mortgage. For many aspiring homeowners, the mortgage application process can seem daunting, filled with jargon, paperwork, and numerous financial checks.…

Buying and selling a house at the same time is a delicate balancing act that requires impeccable timing, strategic planning, and a deep understanding of the real estate market. At first glance, it might seem like juggling two massive transactions at once would be complicated. However, with the right approach, it’s possible to sell and…

Finding the right lender and loan program can be a daunting experience for home buyers. A mortgage broker who acts as an intermediary between lenders and buyers can help guide you through the mortgage process and secure the most favorable loan terms. A mortgage broker’s role goes beyond facilitating the mortgage transaction. They understand a…

Fannie Mae and Freddie Mac are government-sponsored entities (GSEs) that play pivotal roles in maintaining the mortgage market’s liquidity, stability, and affordability. By purchasing and guaranteeing mortgages from lenders, these entities ensure funds are consistently available for individuals wanting to buy homes, refinance their mortgages, or tap into their home’s equity with home equity loans.…

When you sell your property, you’ll be subject to various tax implications. A capital gain is the rise in value of an asset compared to its original purchase price. When the asset is sold, the profit earned from that sale is subject to capital gains taxes. Homes are significant investments, so understanding what happens after…

Cash offers are often seen as the gold standard in a competitive housing market, as they typically mean fewer contingencies and a faster closing process. For many homebuyers, competing with a cash offer can feel like an impossible hurdle because they eliminate the uncertainties of mortgage approvals and often expedite the entire process. While a…

Every homeowner knows the peace of mind that comes with insuring their property. However, beyond the typical homeowner’s insurance, you may want to consider another type of coverage—the home warranty. Unlike homeowner’s insurance, a home warranty is a service contract that covers repairs and replacements of major appliances and home systems that break due to…

When you apply for a home loan, lenders do a title search to uncover issues with the title, including liens and easements. If you’re a first-time buyer, knowing what an easement is can help you determine whether you want to move forward with the sale. An easement on a property refers to the legal right…

A home is the largest investment many people make in their lifetimes. Unfortunately, the mortgage process can be complicated for first-time homebuyers who don’t know its intricacies and the different steps. One such intricacy is the mortgage rate lock extension and its associated fees. When you’re in the process of getting a mortgage, the interest…

For borrowers, understanding the distinctions between APR vs. interest rate can mean the difference between securing an affordable loan or spending too much in the long run. Both APR and interest rates determine how much a loan will cost. However, they encompass diverse aspects of that total cost. When comparing APR and interest rate, it’s…

Being a property owner comes with many responsibilities and documents. One concept people misunderstand is the house title. A house title is the legal notion of property ownership and signifies the bundle of rights associated with a piece of property. Unlike the deed, the house title isn’t a document. Instead, it’s a concept that encapsulates…

When someone passes away, their family is typically responsible for tying up their loose ends, which may mean contacting the mortgage company. If a deceased individual had an outstanding mortgage balance, notifying the mortgage company as soon as possible can clarify the next steps concerning the property and repayment of debts. Failure to communicate this…

Finding a new home to purchase is a monumental step in anyone’s life. Anticipation, excitement, and a little bit of stress come together to help you find your perfect home. Each home has its own story, charm, and potential pitfalls. House hunting is more than just finding a place to rest after a long day…

Understanding various terminologies and processes that can affect your mortgage loan can significantly influence your experience when buying and owning a home. An appraisal is an integral part of the mortgage process because it establishes the market value of a property, which lenders use to determine the loan amount. The appraisal also protects buyers, ensuring…

While homeownership has many benefits, homeowners must realize that investing in property always carries risks, especially if they fail to fulfill their financial obligations. Foreclosure is something no homeowner wants to go through. However, understanding how foreclosure works can help safeguard one of the most important assets you’ll ever own — your home. Foreclosure is…

Understanding the housing market can be challenging for anyone, including homeowners. An underwater mortgage is a term homeowners should know to help them avoid some of the negative consequences that can come with owning a home. While there are plenty of benefits to homeownership, there are also some risks involved. Although no one wants to…

Our blended interest rate calculator is designed to take the guesswork out of the equation. With this calculator, you can effortlessly input multiple interest rates, and it will instantly provide you with a unified, single rate. The blended rate calculator makes understanding interest rates easier, ensuring accuracy. Keep reading to learn how to calculate a…

Saving for a down payment and being able to prove your ability to repay a home loan can be challenging, especially if you don’t have a traditional job. However, alternative options exist, depending on your unique financial situation. If you have a 401(k) retirement account, you may be able to tap into it as income…

Are you wondering how to buy a house with low income? Buying a house with a low income can be a significant challenge, particularly with existing mortgage requirements and the competitive nature of the housing market. On the other hand, low income houses are available, and income-based loans can make it easier for people with…

Getting pre-approved is the first step to homeownership. A pre-approval letter demonstrates that you qualify for a home loan and the total loan amount a lender might be willing to offer. A mortgage pre-approval doesn’t guarantee you’ll receive the same amount during final approval. However, it can help your offer look more appealing to sellers,…

The adjusted basis in real estate is one of the most important metrics for calculating your tax burden. It’s primarily used to calculate capital gains and losses during tax season to determine how much you’ll owe for that year. However, it can also be used to calculate depreciation deductions you can claim on your taxes to reduce…

Conventional loans are the most common type of mortgage product. Unfortunately, they can be more difficult to qualify for due to stringent requirements that can prevent some types of borrowers from achieving their dreams of homeownership. Conventional loans are provided by private lenders, they’re not backed by government agencies. Instead, the requirements for these loans…

If you are looking to forgo a traditional mortgage, it is possible to become a cash home buyer if you have the finances or credit score to do so. Whether you have proof of the funds in your bank account or you want to work with a financing company to make a cash offer on…

A mortgage pre-approval is one of the first steps you should take after making the decision to buy a home. Obtaining a mortgage pre-approval letter gives you negotiating power when shopping for homes and shows sellers you’re a serious buyer. Unfortunately, your mortgage pre-approval letter won’t last forever. So how long is a pre-approval good…

For many, a home is the most significant investment they’ll make. But what’s the point of investing in a home if you don’t use that investment to better your life? According to Black Knight, total mortgage holder equity topped $16 trillion again in June of 2023, with tappable equity – the amount that can be…

With a reverse mortgage, you can grow your income with a loan you don’t have to repay until you sell the property or pass away. These types of loans are great options for retirees who meet the eligibility requirements. Learning about the different types of reverse mortgages that are available can help you find the…

While there may be times where a merchant cash advance can help you get quick cash to cover a shortfall or take advantage of an opportunity to buy inventory, this is an expensive and risky financing option. The interest rates on merchant cash advance loans tend to be higher than other forms of short-term lending…

A home equity loan can help you tap into your home’s equity to consolidate debt and free up your cash flow. Unfortunately, not everyone has a regular 9-5 job with documentation like W-2s, pay stubs, and tax returns that allow them to easily prove their ability to repay a loan. While traditional loans require borrowers to…

If you already have equity in your home but you need to relocate or are interested in purchasing a new home, you may want to sell a house with a mortgage that hasn’t yet been paid off. Fortunately, this is entirely possible and many people go through the process of selling a house with an…

Buying a home is still a huge part of the American dream. Nevertheless, to achieve this goal, your actions must be anchored in reality. Closing costs are one of the most commonly overlooked parts of purchasing a home. Unfortunately, many prospective homeowners fail to fully calculate closing costs and incorporate them into their home buying…

You can refinance your mortgage to fund home improvements, pay college tuition, or accomplish other financial goals. However, if you’re on a timeline you might be asking yourself, “How long does it take to refinance a house?” It can take up to 45 days or longer depending on the type of loan you opt for…

Are you thinking about purchasing a house in the near future? If so, you have probably heard that there are a lot of factors that will influence your potential mortgage interest rate, and one of them is your credit score. If your credit score is too low, you may not even qualify for a mortgage.…

When shopping for a house, it helps to know how much you can afford to spend. A mortgage pre-approval helps you understand how much of a home loan you may qualify for and gives you more power when making an offer on your dream home. The mortgage pre-approval process works similarly to getting a mortgage,…

When you purchase a home, you’ll be required to pay various fees, such as homeowner’s insurance and property taxes. Property taxes are paid to local governments to fund essential services like schools, police, and fire departments. Unfortunately, depending on where you live and the value of your home, property taxes can be costly. Paying property…

If you’re looking for ways to get out of debt, you’re not alone. Many people struggle with paying off debt and keeping their finances in good shape. Debt can even have a negative impact during the mortgage underwriting process and make it harder to purchase a home. However, it can be difficult to manage multiple…

A home is often one of the most significant purchases you’ll ever make. Unfortunately, not everyone realizes the various costs of taking out a mortgage. Apart from your monthly mortgage premium, you’ll be responsible for everything from closing costs and administrative fees to mortgage insurance. The type of mortgage insurance you may be responsible for…

Investing in real estate can help you build wealth over time while expanding your portfolio with new opportunities. In addition, the tax benefits of real estate investing make it even more appealing for new and veteran investors alike. Tax deductions for rental properties are one of the most significant benefits of investing in real estate,…

Homeownership can be expensive, but with the right mortgage, you can save thousands of dollars over the life of your loan. With so many options available for borrowers, home buyers may forget about government-backed programs like the USDA loan. USDA loans are guaranteed by the Rural Development Guaranteed Housing Loan Program from the US Department of Agriculture (USDA) and…

Taking out a loan costs money. When you take out a loan, you’ll see various terms on your paperwork that can help you estimate your total costs, such as interest, APY, and APR. Knowing what these terms mean can help you determine if a loan or credit card is right for you based on your…

Many people entered a forbearance program during COVID-19 that allowed them to remain in their homes without worrying about mortgage payments, but does COVID forbearance affect getting a new mortgage? Forbearance may affect your ability to get a new mortgage or refinance your existing home loan because of the way it impacts your finances. While…

Leveraging the equity you’ve built up in your home can help you pay for large expenses at a lower interest rate than other types of debt like personal loans or credit cards. A home equity line of credit (HELOC) is a second mortgage that allows you to start using your home’s equity to increase cash…

Investing in rental property can help you grow your wealth, but it also comes with a different set of responsibilities than any other type of real estate investment. When you invest in rental properties, you’re responsible for everything from handling tenant issues and maintenance requests to calculating your return on investment (ROI) to ensure you…