Using up your savings to buy anything is never a good idea. Buying a car, a flat screen TV or a house should never empty your savings account. Let’s see why this happens so often and how to avoid it.
Posts Tagged: down payment
Fannie Mae and Freddie Mac buy mortgages which means that they guarantee them. Without the backing of Fannie and Freddie, mortgage lenders have to find other investors to sell their mortgage loans to and those investors charge more so interest rates are higher. Fannie and Freddie backed mortgages are called conforming; the others are called jumbo. The limit on a conforming mortgage is $417,000 but that is about to change….
The most important first step in buying a home is financing which involves getting prequalified for a home mortgage. It doesn’t matter if you’re buying Bergen County real estate or a home somewhere else – because your mortgage loan is so critical to your home buying process, you are naturally interested in any news about these loans. Here is where you begin what I call Mortgage Rate Madness. People afflicted with this disease believe that…