Personal Finance
Better Finances for a Better You
Topic: "Mortgages"
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Word of the week
Adjustable-Rate Mortgage (ARM)
An adjustable rate mortgage is known as an ARM. An ARM's interest rate fluctuates over time, in contrast to fixed rate mortgages, which have a constant interest rate for the duration of the loan.
Adjustable-Rate Mortgage (ARM): What It Is and Different Types →Infographic of the week
Mapped: Median Home Sale Price by U.S. State
In 2024, buying a home in the U.S. looks vastly different depending on where you are. Factors like local demand, land availability, economic conditions, and housing regulations all contribute to the median home prices in each state.
Which States Have the Highest Home Sales Prices? →Infographic of the week
Mapped: Fastest Growing (and Shrinking) Cities in the U.S. and Canada
Despite Canada having a population just 12% the size of the United States, the country was home to a majority of the fastest-growing cities between the two neighbouring countries.
Toronto is the Fastest-Growing City in Canada and the U.S. →Infographic of the week
The American Dream Costs $4.4 Million
This graphic shows the estimated cost of the American dream per household over the course of their lifetime, based on analysis from Investopedia.
The cost of the American dream exceeds the average lifetime salaries of both men ($3.3 million) and women ($2.4 million) with a Bachelor's degree →Infographic of the week
Global Real Estate Bubble Index 2024
This graphic shows real home price growth in real estate bubble markets over the last decade
Where do American cities rank? →Did you know?
Nine out of 10 homeowners who bought a home in the last three years say they were unprepared for the extra costs of maintaining and financing their property, according to a survey by Real Estate Witch.
Which costs were more expensive than people originally expected →Word of the week
Closing Costs
The expenses associated with "closing" a real estate purchase, including legal and administrative fees, are known as closing fees. These fees are not included in the purchase price of the home.
An overview of mortgage closing costs in Canada →Budgeting
Unexpected Costs That New Home Buyers Frequently Forget
- Property/Land Transfer Tax
- Property Tax
- Insurance
- Home Inspection
- Legal Fees
Word of the week
Homeowners Insurance
Home insurance provides protection for your home and your belongings in case of theft, loss, or damage. It can also help cover additional living expenses if you're temporarily unable to live in your home, such as living in a hotel or renting a home.
What Is Homeowners Insurance and How Does It Work? →Word of the week
Home equity loan / home equity line of credit (HELOC)
Your home equity is the current value of your house minus the outstanding mortgage amount. Your equity grows as you pay down your mortgage or if your home's value increases. The equity in your house can be used as collateral for HELOCs and home equity loans, which can be considered as a second mortgage since they are backed by the equity in your house.
If you are considering a HELOC, understand these pitfalls first →Word of the week
Adjustable-Rate Mortgage (ARM)
A house loan with a variable interest rate is referred to as an adjustable-rate mortgage (ARM). The starting interest rate on an ARM is set for a specific amount of time. Subsequently, the interest rate charged on the remaining amount is frequently adjusted, perhaps once a year or even once a month.
Adjustable-Rate Mortgage (ARM): What It Is and Different Types →Infographic of the week
Mapped: The Salary Needed to Buy a Home in 50 U.S. Cities in 2024
In 2024, the median salary for the typical American home buyer has risen to $104,339—up from $88,000 just two years prior.
The Cost of American Home Ownership by State in 2024 →Infographic of the week
The World’s Least Affordable Housing Markets in 2024
Many cities around the world have become very expensive to buy a home in, but which ones are the absolute most unattainable?
Impossibly unaffordable cities, where does your city rank →Word of the week
Fixed Mortgage
The interest rate on a fixed-rate mortgage does not change over a certain period, often two to five years. This offers security and predictability because your monthly mortgage payments will remain unchanged over this set term.
Compare Today’s Mortgage Rates →Word of the week
Prime Rate
The best interest rate that lenders charge customers is known as the prime rate, or prime lending rate. It's possible that your credit card's real interest rate is higher than the prime rate. Variable APRs frequently fluctuate in tandem with changes in the prime rate. It follows that your variable APR will probably increase if the prime rate does, and vice versa.
Here’s a breakdown of the most common personal finance terms →Serious Stuff
Nearly half of house hunters don’t think they can afford a home — these 4 tips can make it possible from Kelsey Neubauer
- Bulk up your savings
- Build your credit
- Apply for grant and loan programs
- Secure an assumable mortgage
Did you know?
CNN found that 33% of those surveyed do not know what "annual percentage rate" means. Further, 33% also believe that mortgage lenders are required to charge all borrowers the same fees.
Neontra can help you keep track of interest rates, loan amortization, and monthly mortgage payments →Did you know?
Housing is the largest average cost at $2,025 per month, making up 33% of typical spending, according to the most recent Consumer Expenditure Survey from the U.S. Bureau of Labor Statistics (BLS).
Neontra auto-categorizes your all transactions by essential, non-essential, debt payments and saving contributions so you can see what percentage of your expenses are going to housing →Did you know?
The word "mortgage" comes from the old French phrase "mort gaige." Literally translated, mort gaige means death pledge. Once the mortgage is paid off, the loan dies.
10 Weird Facts About Home Mortgages →Saving
How To Avoid Being House Poor And Other Homebuyer Horror Stories
Half Banked Podcast: Hosts Cadeem and Bethan focus on what buying a home is like, particularly for first-timers →Word of the week
Co-Borrower
When two people apply for a loan or credit line together, they are known as co-borrowers. The money associated with the loan are equally accessible to the co-borrower. Payment obligations fall on both the principal borrower and the co-borrower. A common example of this is a married couple that applies for a mortgage or auto loan together.
What Is a Co-Borrower? Role in Loan Documents and Vs. Co-Signer →Infographic of the week
What You Need to Earn to Own a Home in 50 American Cities
Between skyrocketing prices, stagnating wages, and now rising interest rates, the deck seems to be increasingly stacked against home ownership. Using May 2023 data tabulated by Home Sweet Home, the Visual Capitalist maps out the annual salary needed to afford a 30-year mortgage (at 6.37%) to buy a home in America’s 50 most populous metropolitan areas.
The Least and Most Affordable American Cities to Own a Home →Word of the week
Collateral
Capital or asset pledged to a bank or other lender in the event that the borrower is unable to make all of the repayment instalments on a loan.
Collateral Definition, Types, & Examples →Infographic of the week
Which Cities Have Bubble Risk in Their Property Markets?
Despite higher mortgages and sharply correcting prices, some cities’ property markets are still in bubble-risk territory.
The UBS Global Real Estate Bubble Index →Word of the week
Amortization
The amortization period is the length of time it takes to pay off a mortgage in full. The amortization is an estimate based on the interest rate for your current term.
Learn more on how your amortization period affects your costs →Saving
Tempted to buy a home with siblings or friends? Here’s what you need to know
Podcast: Stress Test by columnist Rob Carrick on what you should know before buying a home with others →Saving
Rising interest rates brought pain for new homeowners - and opportunity for house hunters
Podcast: Stress Test by columnist Rob Carrick and editor Roma Luciw →Serious stuff
The Bank of Canada has increased its benchmark interest rate to 5 per cent, the highest in 22 years.
What happens when interest rates rise in Canada. What does that mean for you →Infographic of the week
Mapped: How Global Housing Prices Have Changed Since 2010
Houses fulfill a rare mix of necessity, utility, sentimentality, and for many, also act as a primary investment to build wealth. And it’s that last angle, combined with increasing demand in many countries, that is driving housing prices skyward.
See how Canada measures up →← Curating the web to find the most interesting and helpful information about your money.