PITI is the handy acronym for your monthly mortgage payment. It’s pronounced like the word “pity” and the letters stand for the four parts of that monthly payment: P stands for Principal That’s the part of the monthly payment used to pay down the balance of the loan. Your monthly principal payments, plus your down payment, add up to the equity you have in your home. I stands for Interest This is what you pay the lender for borrowing the money. T stands for Taxes These are the

Separation and divorce is often a time of significant change. Beyond the emotions involved there is the reality that life going forward will look quite different than previously expected. However, there is the opportunity for a fresh start! For individuals going through a separation or divorce, a common question is “where will I live?” This is shortly followed by questions like: – What can I afford? – How much do I need for down payment? – What will be my monthly payments? It

When shopping for a mortgage, be mindful that an advertised interest rate is not the same as your loan’s annual percentage rate or APR. Most home buyers today are unaware of the differences. Knowing the difference can help save money on your mortgage. Interest rate can be variable/adjustable or fixed, constant for the terms of your loan. It is always shown as a percentage (%) and is the cost of borrowing the loan amount. APR includes interest rate and other costs, such as dis

Lenders use the FICO Score to help set the terms, conditions, and amount of your mortgage loan. FICO calculates a credit score from 5 categories of data, with these average weightings: 1. Payment History—35%. How you’ve handled credit cards, retail accounts, installment loans, finance company accounts, mortgages, etc. For delinquent payments, FICO looks at how much, how many, and how long ago. 2. Amounts Owed—30%. What you owe on how many and what type of accounts, plus the p

Applying for a mortgage loan is an extremely interactive process. It’s very important that you and we stay closely in touch. Here are 9 “do’s” for you: Do keep the process moving by responding as soon as possible to our requests for tax returns and other documents. Do get back to us with any decisions we need from you as soon as is reasonably possible. Do let us know about any questions or concerns you have as soon as they come up. Do continue to make all your current rent or

It's easy to get lost in a sea of misinformation when it comes to buying a home. Sometimes the information you find or hear is outdated. Sometimes it doesn't apply to your situation. And sometimes it's just wrong. Having accurate information is key to successfully buying a home so keep in mind these 4 common home buying myths to help understand what you need to know. MYTH: You need a large down payment (10-20%) to buy a home. REALITY: In fact there are numerous programs with

Taking the steps to increase your credit scores is an important part of your financial health. There are ripple effects of having a good credit score such as better terms on your mortgage or an easier process. One of the fastest ways to improve your credit score is pay attention to the balances on any credit cards compared to the credit limit. This is called debt utilization and is a significant part of how your score is calculated. If your credit limit on a card is $1000 and