Lenderment Blog

Can I use a loan for my down payment?

Saving up for a down payment can be challenging for some home buyers, especially those who are trying to purchase their first home. It might sound simple to just borrow the money–but this is often not a good idea. FHA and conventional loans don’t allow it Few lenders will allow borrowers to use a personal […]

The difference between interest rate and APR

There’s more to getting a great mortgage deal than comparing interest rates. While your interest rate plays the largest role in the total cost of your loan, it doesn’t paint the whole picture. In this post, we’ll explain what APR is and how it’s usually a better metric for comparing mortgage offers. What is APR? […]

Should I refinance out of FHA into a conventional loan?

Many homeowners who purchase their home with an FHA (Federal Housing Administration) loan wonder if they should refinance into a conventional mortgage when their finances improve. As with many refinance decisions, it depends. In this post, we’ll discuss the pros and cons of making the change. The only way to remove PMI Unlike a conventional […]

Are no closing costs refinances a good idea?

Most homeowners are on the lookout for a better deal on their home mortgage. Refinancing to a lower interest rate can potentially save thousands of dollars. But with each refinance, you’ll also need to pay a percentage of your loan value in closing costs. Unless you choose a lender that offers a no closing costs […]

Using a co-borrower to get approved for a mortgage

In this post, we’ll explain what a co-borrower is, who can be one, what the responsibility entails, and when it can/can’t help you get your loan approved. What is a co-borrower? A co-borrower is an additional borrower who is added to your mortgage to act as a guarantor for your loan. Becoming a guarantor means […]

Advantages and disadvantages of 15-year mortgages

Choosing a 15-year mortgage can save you tens of thousands of dollars over the life of your loan. In this post, we’ll cover the primary advantages and disadvantages of opting for a 15-year term for your next home loan. Advantage: Lower total interest payments Paying off your mortgage in half the time means you’ll be […]

How to dispute items on your credit report

Having a solid credit score is a great way to improve your chances of being approved for a mortgage. A high credit score can also help you get a lower interest rate and more favorable terms. So, if you discover black marks on your credit report that shouldn’t be there, you need to dispute them. […]

How to get a mortgage with student loan debt

Graduating from college can be an important step for your long-term financial future–but if you’re stuck with a sizable debt to pay off, you might be wondering how this will affect your ability to qualify for a mortgage. In this post, we’ll answer some questions about getting approved for a mortgage with student loan debt. […]

What is HUD?

If you’re in the market for a mortgage, you may have heard the term HUD. If you’re wondering how it relates to buying a home, here’s a simple explanation. The Department of Housing and Urban Development (HUD) Originally formed in the 1960s to fight poverty, today’s HUD is the federal agency responsible for national housing […]

What is upfront mortgage insurance?

Upfront mortgage insurance is a type of insurance that protects lenders who issue FHA-approved loans to higher-risk borrowers. Paid at the time of closing, the current cost of upfront mortgage insurance is 1.75% of the home’s purchase price. Why do I need to pay upfront mortgage insurance? FHA loans have looser approval requirements and a […]