Include PITI (principal, interest, taxes and insurance) in your budget. Mortgage calculators will show you how much you'll pay toward principal and interest every month. Remember that you'll also have to pay property taxes and homeowners insurance. Some financial institutions will require you to contribute these funds monthly along with your principal and interest payment. Be sure to talk to your lender to understand what will be included in your monthly payment.

There are thousands of non-profit housing counseling agencies that are certified by the U.S. Department of Housing and Urban Development (HUD). Counselors will work with homeowners to help them prevent a foreclosure or get back on track with paying their mortgage. Most of the services are free for struggling homeowners. Get more details on HUD housing counseling agencies.

Everyone should make sure their credit score is as high as it possibly can be. If you high credit card balances, pay them below 15% of the credit limit. Dispute negative account information with the credit bureaus. Contact your creditors and negotiate a pay for delete. If you have a friend or family member with a credit card in good standing have them add you as an authorized user.
In simple terms, a mortgage is a loan in which your house functions as the collateral. The bank or mortgage lender loans you a large chunk of money (typically 80 percent of the price of the home), which you must pay back -- with interest -- over a set period of time. If you fail to pay back the loan, the lender can take your home through a legal process known as foreclosure.
Finding a trustworthy and competent mortgage lender is an important and often overlooked step of the home buying or refinancing process. Signing off on a mortgage is one of the most significant financial decisions you can make, one that can last anywhere from 15-30 years. So, you need to make sure you’ve found a mortgage lender who will assist you through the process, ensuring you’re not making any mistakes along the way.

This is the number of years during which you will be making payments on your mortgage. The most popular mortgage is a 30-year fixed, with 15-year fixed coming next. Common terms for fixed mortgages are 15 and 30 years, but some banks offer mortgages in other five-year increments from 10 to 40 years. Stretching out payments over 30 years or more will mean that your monthly outlay will be lower, but the overall cost of your home will be more because you’ll be paying interest for more years. To make your home cost less, choose a shorter term, such as 15 years.


Loans that are backed by the federal government (i.e., the Federal Housing Administration (FHA), Veterans Affairs (VA) and the United States Department of Agriculture (USDA) are designed to make buying homes more affordable and typically offer low down payments. Because conventional loans are not guaranteed by the federal government if the buyer defaults, they’re a higher risk for the banks, credit unions and other lenders that offer them. Conventional loans require larger down payments than most federally backed loans, but may offer lower interest rates and the flexibility to negotiate fees – usually resulting in a lower monthly payment.
Eric Bank is a senior business and real estate writer, freelancing since 2002. He has written thousands of articles about business, insurance, real estate, investing and taxes, Eric writes articles, blogs and SEO-friendly website content for dozens of clients worldwide, including get.com and valuepenguin.com. Eric holds two Master's Degrees -- in Business Administration and in Finance. His website is ericbank.com.
Don’t let lenders dictate how much you should spend on a mortgage loan. Lenders determine pre-approval amounts based on your income and credit report, and they don’t factor in how much you spend on daycare, insurance, groceries, or fuel. Rather than purchase a more expensive house because the lender says you can, be smart and keep your housing expense within your means.
Yes, Keep Your Home California will continue to pay Unemployment Mortgage Assistance benefits to a homeowner’s servicer even if the homeowner exhausts their California Employment Development Department benefits, and remain not fully employed, during the time of Unemployment Mortgage Assistance. Keep Your Home California will stop benefit payments if the homeowner becomes fully re-employed or if it determines that the home is listed for sale, the homeowner is renting or no longer occupying the property, or the homeowner is actively negotiating a Short Sale or Deed in Lieu of foreclosure with their Servicer.
In addition to the loan modification programs mentioned above, Wells Fargo has other options and programs that struggling homeowners can use to get help with paying their mortgage. Examples include principal reduction and forbearance. For example, they have written off tens of billions of dollars in principal that is due from a homeowner. Find additional Wells Fargo mortgage assistance programs.

Community Action Agencies are private and public nonprofit organizations. The main goal of a CAA is to help people achieve self-sufficiency. Each CAA is governed locally and features different programs. The organizations work directly with state and local government assistance programs and charities. According to the Community Action Partnership, 94 percent of CAAs provide referrals for assistance and 91 percent provide emergency services, including food banks and homeless prevention. Assistance is generally available only to low-income families and individuals.
Unemployment Mortgage Assistance benefit payments are usually sent to the servicer on the last Friday of each month. Homeowners may request a copy of their Unemployment Mortgage Assistance Disbursement Schedule. Send a request to umanotice@kyhca.org. Be sure to provide your email address, first/last name, Homeowner ID number, and specify that you are requesting a copy of your Unemployment Mortgage Assistance Disbursement Schedule.

This is the distinguishing characteristic of a fixed mortgage. The interest rate you start off with stays with you for as long as you keep the loan, even if you keep it for the full 30-year term. The rate assigned to an adjustable mortgage, on the other hand, can change over time. These are very important differences, from a home buyer’s perspective.
Freddie Mac has also opened Borrower Help Centers in several cities around the country. The centers will provide people with direct access to a housing specialist. Meet with a counselor to explore options for mortgage assistance, including loan modifications, overall debt counseling, and other resources to deal with a delinquent mortgage and other financial problems. Find a Borrower Help Center to learn more.
This is the distinguishing characteristic of a fixed mortgage. The interest rate you start off with stays with you for as long as you keep the loan, even if you keep it for the full 30-year term. The rate assigned to an adjustable mortgage, on the other hand, can change over time. These are very important differences, from a home buyer’s perspective.
No. The purpose of the Keep Your Home California Program is to keep struggling homeowners in their home and prevent avoidable foreclosures. This program is not available for second homes or investment properties, which includes using the home as a rental property. If you lease or rent your home after you receive Keep Your Home California assistance you will be ineligible to receive further assistance and may be responsible to repay the benefit proceeds if you sell your home in the future. If during the active benefit period of any Keep Your Home California program it is determined that your home is vacant, non-owner occupied, and/or rented, Keep Your Home California reserves the right to terminate benefit assistance.

Keep Your Home California uses the Note date as the start date for the Keep Your Home California lien. The Note date is the date of final Keep Your Home California approval. This will always pre-date the servicer’s application of Keep Your Home California funds to your loan. If you wish to know your Note date, you may contact Keep Your Home California at (888) 953-3722, Monday-Friday from 8 a.m. to 5 p.m.


The mortgage industry standard is a 20% down payment. However, you may be able to get a conventional mortgage with significantly less money up front -- as low as 3% of the purchase price in many cases. Specialized loan types, such as VA and USDA mortgages require no down payments at all for those who qualify. The point is that while a higher down payment will lower your monthly housing costs, you may be able to get into a home with less money in savings than you think.
With an adjustable-rate mortgage or ARM, the interest rate—and therefore the amount of the monthly payment—can change. These loans start with a fixed rate for a pre-specified timeframe of 1, 3, 5, 7 or 10 years typically. After that time, the interest rate can change each year. What the rate changes to depend on the market rates and what is outlined in the mortgage agreement.
Apartment renting is great when you are a twenty-something college student and all of the best trendy restaurants are within walking distance of your home. It doesn’t take long, however, until those things slowly fade away and the desire to own a home becomes more than a thought. This is usually the point where you realize you need to evaluate your finances if you are going to apply for a home loan. Fast forward to the point where you have made the decision to buy a home and you are getting an approval. The bank comes back to you saying that you did not get approved for the loan. It can be devastating but if you know the reasons why you can’t qualify for a loan, the easier it will be to work on fixing them so that your dream of owning a home can become a reality.
If you plan on staying put until the mortgage is paid off, a fixed-rate loan will give you stability. The interest rate is a little higher than an adjustable-rate mortgage (ARM). But it won’t go up like an ARM can. The only things that will change your house payment over time are property taxes and insurance rates, but those will change regardless of which type of loan you get.
To be clear, you don't need a pre-approval to start looking at houses. However, since a pre-approval is essentially the same as a full mortgage approval, just without a specific home in mind, it can be an extremely valuable shopping tool. Specifically, if you submit a pre-approval along with your offer, it tells the seller that you're a serious buyer who is not likely to run into trouble when obtaining financing. One caveat: A pre-approval and pre-qualification are two different things. A pre-qualification is based solely on information you provide and is not a commitment to lend money, therefore it doesn't carry nearly as much weight.
In some cases, you may not be required to provide all of that information. Some loans are referred to as low doc or no doc because they don't require you to prove any of the statements that you make to your underwriter. These loans are normally more expensive, but can be easier to obtain. Additionally, you can obtain a preauthorization before you submit an offer on a home you would like to buy. That can speed up the process, and also shows the seller that you are serious about the purchase.
FHA loans. FHA loans are a program from the Department of Housing and Urban Development (HUD). They’re designed to help first-time homebuyers and people with low incomes or little savings afford a home. They typically offer lower down payments, lower closing costs and less-stringent financial requirements than conventional mortgages. The drawback of FHA loans is that they require an upfront mortgage insurance fee and monthly mortgage insurance payments for all buyers, regardless of your down payment. And, unlike conventional loans, the mortgage insurance cannot be canceled, even if you have more than 20 percent equity in your home.
A deed in lieu of foreclosure is when a homeowner gives the lender back the convey and deeds the home back to the bank or lender that currently holds the mortgage. This has several advantages for both the lender and the borrower, including less of an impact to credit scores, and it releases the homeowner from the debt they owe. Continue with deed in lieu of foreclosure.
A lot of borrowers choose to pick up the phone and call a handful of lenders to request interest rates. Those who do that may be surprised when the lender is asking questions before listing off rates. Again, interest rates vary and are dependent on many factors such as the loan program, your financial situation (including credit score), the cost of the home you’re looking to fund, etc. So, both the borrower and the lender should be interviewing one another to narrow down best options. Don't be alarmed if this happens to you! It's all part of the process of getting you into the best loan for your financial situation.

Coming up with a down payment can be the one of the biggest obstacle when buying a home, especially for first-time home buyers. No matter what type of loan you choose, you will likely have to put some amount of money down. Saving up for a down payment can seem like a daunting task, but with the right planning and budgeting you can reach your savings goals faster than you think. Click here for strategies that can help you save for a down payment.
When you apply for a mortgage, you will need to provide your lender with a number of financial documents. Having these documents already assembled will help accelerate the processing of your loan application. At a minimum, you should be prepared to provide your last two pay stubs, your most recent W-2, your last two years of tax returns, and current bank and brokerage statements.
The first thing lenders will probably do when you apply for a mortgage loan is to check your credit; you should, too. There’s no better time for regular credit monitoring than when you’re trying to prove your creditworthiness to a lender so you can get the best possible rates. You want to make sure that your credit report is as accurate as possible, your scores are where you want them to be, and no one else is getting access to your credit, possibly harming your scores.
Find information on mortgage assistance and foreclosure prevention programs from various companies, federal government agencies, non-profits, HUD counseling agencies, banks and states. Numerous organizations have pledged to provide loan modification and other forms of mortgage help to millions of Americans. Resources are available that can help prevent or stop foreclosures as well as assist homeowners with paying their current and back mortgage payments.
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