When shopping around for a lender, it is easy to focus on the interest rate alone. However, don't overlook lender fees and the reputation of the lender. I recently had a situation where the lender for my client didn't deliver on the agreed upon settlement date. What was the impact ? Read more.

Discount points are fees paid to a lender at closing in order to lower your mortgage interest rate. The cost of each point is equal to one percent of the loan amount. For instance, for a $100,000 loan one discount point equals $1,000. Why would I want to buy points? More.

It's no surprise that interest-only mortgages have gained popularity. For home buyers, interest-only loans increase affordability -- something that many homebuyers need after the last few years of skyrocketing home prices. For example, a $400,000 interest only LIBOR ARM at 4 %, the monthly interest payment is only $1,333. By contrast, a jumbo fixed-rate amortized loan over 30 years at a rate of about six percent, the monthly payment would be $2,398 -- an increase of $1,065. Read more

Understanding Adustable Rate Mortgages

An ARM is a mortgage with an interest rate that is linked to an economic index. The interest rate--and your payments--are periodically adjusted up or down as the index fluctuates. Index, margin and adjustment period are three important components of an ARM. More.

Over half of the states in the United States use mortgages as security instruments. The other states (including Virginia) use a deed of trust, which serves the same purpose with a few important differences. More.