Found 5 blog entries tagged as loan.

Real Estate Word of the Day: Principal

Principal refers to the original amount of money borrowed to purchase a property. It's the initial loan amount that you agree to repay over time, often with added interest. Essentially, the principal represents the actual cost of the property, excluding interest and other fees.

The principal amount directly influences the terms of your mortgage loan, including the monthly payment amount and the total interest paid over the life of the loan. Typically, larger principal amounts result in higher monthly payments but may lead to lower interest rates if you have a good credit score and meet other lending criteria.

The principal amount forms the basis for building equity in your property. Equity is the…

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What is Private Mortgage Insurance?

Private Mortgage Insurance, or PMI, is an insurance policy that pays out to a lender in case a homeowner defaults on a mortgage.

The homeowner pays a monthly or one-time premium on their mortgage payments, but the lender is the one getting the protection.

PMI is usually requested for and arranged by the lender, and is offered by private insurance companies. Lenders usually request PMI if the homeowner wishes to put less than a 20% downpayment on the house, and usually require the policy to be in place until there is at least a 20% Loan-To-Value, or LTV ratio on the house. The LTV ratio is calculated simply by taking the value of a loan on a house and dividing it by the value of the house. For example, if a…

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What is RESPA?

RESPA, or the Federal Real Estate Settlement Procedures Act, is a federal act passed by congress in 1974. After being controlled under U.S. Department of Housing and Urban Development (HUD), responsibility for the act was assumed by the Consumer Financial Protection Bureau (CFPB) in 2011.


The act regulates the real estate settlement process by requiring lenders, mortgage brokers or servicers of home loans to provide disclosures to borrowers that will inform them about real estate transactions, settlement services, relevant consumer protection laws and any other important and relevant information connected to the cost of the real estate settlement process. Any business relationships between closing service providers and other parties…

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We here at Tom Crimmins Realty can attest to the importance of a good credit score. When it comes to buying a home, big or small, all credit-collecting companies look at one thing before offering a loan: your credit report. This might be a breeze for some and nerve-wracking for others. Here’s a crash course on all things credit and how to break the coveted 850.

What is a Credit Score?

A credit score is a three-digit number ranging from 300-850 that expresses how likely you are to repay your debts. This number is created by the three main credit bureaus, Equifax, Experian, and TransUnion, using algorithm models created by companies like FICO. Lenders use this number to determine approval for loans, credit limits, interest rates, and other financial…

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Interest rates fluctuate frequently, often depending on the news. If you are considering refinancing your home, your loan officer may suggest locking in the interest rate on your loan. There are some valid reasons why this is a good idea including:

Saving Money Over The Long-term

Over the life of a loan, an increase of as little as one-quarter of a percent can cost thousands of extra dollars. Spending a small amount of money now to lock in a rate can save money over the life of the loan. Your loan officer will explain the difference in rate increases initially, over a year and over the life of the loan.

You May Not Qualify At Higher Rates 

Whether you are considering refinancing your property or you are buying a new home, you may discover your…

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