Category: Uncategorized

  • How Much Does the Pell Grant Cover

    How Much Does the Pell Grant Cover

    Paying for college is not a simple task; luckily, numerous students are eligible for federal assistance, such as Pell Grants. Pell Grants are a type of government student aid based on financial need that does not require repayment. They can be utilized to cover expenses such as tuition, books, accommodation, and other costs, making them…

  • How Long Does Underwriting Take for a Mortgage Loan

    How Long Does Underwriting Take for a Mortgage Loan

    The majority of the closing process consists of the different procedures your lender will take to confirm your creditworthiness and ensure that they are not assuming an excessive level of risk with your loan. A significant portion of this effort occurs during the underwriting process. If the underwriter experiences problems, this may cause a delay…

  • How Soon Can You Refinance a Personal Loan?

    How Soon Can You Refinance a Personal Loan?

    Refinancing can be an excellent financial decision in certain instances, helping you save on interest payments or pay down your debt faster. Refinancing means taking out a loan with revised terms and an improved interest rate, improving your finances while impacting your credit score. However, refinancing can have serious ramifications for both parties involved. You…

  • How Does a 5 Year ARM Work?

    How Does a 5 Year ARM Work?

    A 5/1 adjustable-rate mortgage (ARM) begins with an initial fixed-rate period of five years before transitioning into its adjustable-rate phase, where your rate readjusts annually, depending on financial indices. ARMs come equipped with caps limiting how much the interest rate can change during each adjustment period, including an initial, periodic, and lifetime rate cap to…

  • What Is a Co Signer on a Loan?

    What Is a Co Signer on a Loan?

    If your friend or family member needs help qualifying for a loan despite poor or limited credit, cosigning their loan could help them be eligible. But beware; cosigning will put you on the hook to pay back debt should your friend default on their repayment agreement. Cosigners are typically family or friends who help others…

  • What Is Escrow on a Home Loan?

    What Is Escrow on a Home Loan?

    Escrow serves two primary functions. First, it secures your earnest money until all contingencies in the purchase contract have been met, while also helping ensure mortgage, insurance and tax payments are made promptly. Your lender will set up an escrow or mortgage impound account to collect payments for homeowner’s insurance premiums and property taxes on…

  • What Credit Score is Good to Buy a House?

    What Credit Score is Good to Buy a House?

    Your credit score plays a pivotal role in the mortgage application process and could make or break your dream of homeownership, saving thousands in interest charges over its lifespan. Conventional lenders usually require at least 620 to be considered for home loans, although loan programs may have lower minimum credit score requirements. Buying a Home…

  • What is a Direct Parent PLUS Loan For Parents?

    What is a Direct Parent PLUS Loan For Parents?

    Direct PLUS Loans for Parents are federal loans designed to assist graduate students and their parents in paying their educational expenses. Unsubsidized PLUS Loans carry interest charges throughout their duration. Parent PLUS loans do not depend on financial need alone; rather, a credit check and Master Promissory Note must be signed before repayment can begin;…

  • What is the Maximum Student Loan Amount for Lifetime Undergraduates

    What is the Maximum Student Loan Amount for Lifetime Undergraduates

    Student loan limits ensure that college students only borrow what is necessary. Annual and aggregate loan limit amounts depend on dependency status, year in school and financial aid received. Independent undergraduates who can financially provide for themselves often can borrow more from private lenders; these lenders set their loan limits based on such criteria as…

  • What is the Average Origination Fee on a Mortgage?

    What is the Average Origination Fee on a Mortgage?

    Lender origination fees cover various services associated with mortgage lending and typically include prepay interest and discount points. Your lender is required to disclose these costs in your Loan Estimate and Closing Disclosure document, although sometimes these charges can be negotiable. Lenders often reduce origination fees if your credit score or down payment is strong…