If you are about to start the process of applying for a mortgage, it’s important that you understand all the terms that are being thrown at you for the first time. These terms will be frequently used, and not knowing them can lead to major confusion about your loan.
Principal
Your loan payment is made up of principal and interest, with each payment being a mix of both. The interest is what the bank receives as profit for lending you the money, and the principal goes toward lowering the balance owed on the home.…
Your credit score is an important factor in determining your financial health and may impact your ability to own big-ticket items in the future, such as a new car or your own home. Additionally, a good credit score can make your life better now by helping you qualify for better interest rates and terms on loans, credit cards, and other forms of credit.
One way to build your credit score is by using installment loans responsibly.…
If you are planning to buy an investment property, this will likely be one of the largest investments you will ever make in your financial future. Along the way, you will learn that there are several different financing options that may be an option when it comes to obtaining financing to cover the cost. One such type of mortgage that may be mentioned is a DSCR mortgage. DSCR stands for debt service coverage ratio.…