Minnesota Closings Then Vs. Closings Now
Think back to June of 2019, it’s Closing Day! Buyers, Sellers, Agents, Loan Officers, and Title Closers arrive at the closing table to sign closing documents. Buyers and Sellers are chatting abou... read more
What Is Equity?
Equity is the value YOU own in property such as a house. It’s the difference between what’s OWED and what the property is WORTH in the current market.
The example this video shows - you have a house worth $300,000 today and you owe the bank $200,000. ... read more
What Are Real Estate Commissions?
Like the video says - real estate agents aren’t paid by the hour!They’re paid a percentage of the purchase price in a successful real estate transaction.
When one agent represents the sellers and another represents the buyers the commission is typically... read more
What Is “Prime”?
The Prime Lending Rate - sometimes just called “Prime” - is the interest rate that banks charge each other for overnight loans. Some consumer rates - like ARMs - are set in relation to Prime.
In the US, Prime is affected by the Federal Reserve lendi... read more
What Are Discount Points?
Discount points allow you to lower your interest rate. While this video simplifies things to help you remember, “points” are essentially prepaid interest with each point equaling 1% of the total loan amount.
Generally, for each point paid on a 30-year mor... read more
What Is An Escrow Account? Do I Need One?
As we show you in this video, an escrow account is an account, established by your lender, to set aside a portion of your monthly mortgage payment to cover annual charges for homeowner's insurance mortgage insurance (if applicable), and property taxes.
Escrow accounts... read more
What Steps Need To Be Taken To Secure A Loan?
You’ll see some pictures in this video to help you remember later, but the first step in securing a loan is to complete a loan application.
To do so, you'll need the following information.
Pay stubs for the past 2-3 months.
W-2 forms for t... read more
What Is A Mortgage?
The original phrase “mort gage” translates as “death pledge”! But as this video explains, a mortgage is a loan obtained to purchase real estate.
The "mortgage" itself is a lien - a legal claim on the home or property that secures the promise to ... read more
What Is Loan To Value (LTV) And How Does It Affect The Size Of My Loan?
While this video simplifies things to help you remember, the loan to value ratio is the amount of money you borrow compared with the price or appraised value of the home you are purchasing.
Each loan has a specific LTV limit. For example: With a 75% LTV loan on a hom... read more
What Types Of Mortgage Loans Are Available?
This video tells you about the most common types: Fixed Rate, ARM, Balloon and 2-Step.
First, Fixed Rate Mortgages: Payments remain the same for the life of the loan generally 15 years or 30 years. Interest rates remain the same, so payments are predictable.
A second... read more
Our Partners
