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Real Estate & Mortgages?

Buying, selling, borrowing, and the fees nobody warns you about. 25 questions and counting.

What are closing costs, and who pays them?Fees to complete a property purchase, commonly two to five percent of the loan for buyers. They are separate from the do…
Should you get a fixed or adjustable rate mortgage?Fixed for most people, because payment certainty over thirty years is worth a great deal. An adjustable rate makes sense…
What is the difference between pre-qualification and pre-approval?Pre-qualification is an informal estimate based on what you tell the lender. Pre-approval involves verified documents an…
Should you ever waive a home inspection?No, and this is one of the few places worth being categorical. Waiving inspection to win a bidding war means committing …
When does refinancing a mortgage make sense?When the monthly savings recover the closing costs before you sell, and when the new loan does not restart a thirty-year…
What is an HOA, and what can it actually make you do?A homeowners association enforces recorded covenants that bind you automatically when you buy. It can levy dues and spec…
What does a real estate agent actually do, and who pays them?They market, price, negotiate, and manage the transaction. Commissions come from the sale proceeds and were traditionall…
Do you really need 20 percent down to buy a house?No. Conventional loans go to three percent down, FHA to three and a half, and VA and USDA to zero for those who qualify.…
How do you actually decide whether to rent or buy?Compare total unrecoverable costs, not rent against a mortgage payment. Owning has its own money that never comes back: …
How are property taxes calculated, and can you appeal them?Assessed value multiplied by the local tax rate, with exemptions subtracted. Assessments are frequently wrong, appeals a…
What are contingencies in a home offer, and which ones matter?Conditions that must be met or you can exit and keep your deposit. The core three are inspection, financing, and apprais…
What is a landlord actually required to fix?Anything affecting habitability: heat, running water, working plumbing and electrical, structural safety, and freedom fr…
Can a landlord enter your apartment without permission?Generally only with advance notice, commonly 24 hours, and for a legitimate purpose such as repairs, inspection, or show…
Why did my mortgage payment go up on a fixed-rate loan?Because the fixed part is only principal and interest. Property taxes and insurance premiums flow through your escrow ac…
Should you pay off your mortgage early?Mathematically it depends on your rate against what the money could earn elsewhere. Below about four percent, investing …
Is buying a rental property actually a good investment?It can be, and the returns advertised usually ignore vacancy, maintenance, capital expenditures, and your own labor. Run…
What are mortgage points, and are they worth buying?Prepaid interest that lowers your rate, with one point costing one percent of the loan. Worth it only if you keep the lo…
What happens if the appraisal comes in low?The lender will only lend against the appraised value, so a gap between price and appraisal has to be closed by you in c…
What is the difference between a HELOC and a home equity loan?A home equity loan is a lump sum at a fixed rate. A HELOC is a revolving line you draw from at a variable rate. Both put…
What is earnest money, and can you lose it?A deposit showing you are serious, commonly one to three percent of the price, held in escrow and applied to your costs …
What is title insurance, and do you need it?Protection against defects in the property's ownership history, such as unknown liens, forged documents, or missed heirs…
What does escrow actually mean in a home purchase?Two different things share the name. During a purchase, escrow is a neutral third party holding funds and documents unti…
What actually happens at a real estate closing?You review and sign the loan documents and transfer paperwork, provide funds by wire or certified check, and receive the…
What is a lien on a property?A legal claim against a property securing a debt, which generally must be cleared before the property can be sold with c…
What is a 1031 exchange?A way to defer capital gains tax by rolling proceeds from one investment property into another. Strict deadlines apply: …