fbpx

Latest Articles

WTF is happening with QM?

What is QM? In the aftermath of the global financial crisis, many new regulations were implemented designed to ensure that mortgage lenders made a reasonable good faith assessment at or before the closing of a loan that the borrower would have sufficient income to pay it back over time. Mortgages that complied were called qualified […]

WTF is the Total Interest Percentage (TIP)?

You see it staring back out at you on page 3 of the Loan Estimate. Big and glaring. Total Interest Percentage (TIP). And the percentage is huge! Something crazy like 69.45%. And you thought the interest rate was something in the single digits, right? Total Interest Percentage is the amount of dollars paid in interest over […]

Should I Escrow Taxes and Insurance?

As a homeowner, you are required to pay property taxes, homeowner’s insurance and flood insurance (if you’re in a designated flood zone).  Lenders give borrowers the option to pay 1/12 of the annual tax amount and/or insurance premium monthly with the mortgage payment.  These funds can get set aside in an “escrow” account and will […]