Category: Mortgage Basics

As temperatures drop, the real estate market slows, creating unique opportunities for buyers and homeowners. While spring and summer are traditionally busy, winter can be an ideal season to explore mortgage options. At Northeast Financial, we’re here to help you take advantage of the benefits of the quieter months. Less Competition, More Opportunity The colder…
Read more

The holiday season is a time for family gatherings, celebrations, and relaxation—but if you’re in the middle of buying a home, it can also feel like a stressful juggling act. Between travel plans and holiday to-do lists, staying focused on your home purchase can be a challenge. However, the holiday season doesn’t have to slow…
Read more

When you’re purchasing or refinancing a home with a conventional loan, an appraisal is typically required to assess the value of the property. However, in some cases, Fannie Mae and Freddie Mac offer appraisal waivers, which allow certain buyers or homeowners to skip the traditional appraisal process. This can save time, reduce closing costs, and…
Read more

Homebuyers in 2025 are in for exciting news—conforming loan limits are on the rise! Right now, the current maximum conforming loan limit is $726,200 in most areas, but by 2025, it’s expected to exceed $802,000. This means you’ll soon have the opportunity to qualify for a larger mortgage, allowing you to purchase a home that…
Read more

For many homeowners, a mortgage is one of the biggest financial commitments they’ll make in their lifetime. It can feel daunting, especially when you see how long those 30-year loans stretch out. But what if I told you there’s a simple way to save thousands of dollars in interest and pay off your mortgage faster?…
Read more

If you’re just here for the conforming loan limit news, $726,200 is the number for 2023. Does this mean no one can get a mortgage for more than $726,200?  No.  The conforming loan limit is the maximum amount that can be guaranteed by Fannie Mae and Freddie Mac (the government-sponsored enterprises or GSEs).  That guarantee…
Read more

Your debt-to-income ratio, or DTI, is an important personal finance measure that compares the amount of money you earn to the amount of money that you owe to your creditors. This number comes into play when trying to line up financing to purchase a home because it is used to determine mortgage affordability. Once financing has been…
Read more

Key Concepts Mortgage rates are interest rates on home loans There are really TWO mortgage rates: the interest rate (or “note rate”) applied to your loan amount (or “principal”) and the rate implied by certain upfront costs (the “effective rate”). APR (Annual Percentage Rate) attempts to convey that “effective rate.” Understand the tradeoffs between upfront…
Read more

When people want to buy something now, but don’t have (or don’t wish to spend) the cash to buy it outright, they can instead use a loan (aka financing, borrowing, debt).  This typically involves an agreement between the consumer and a lender.  The lender provides the big chunk of money today (that big amount that…
Read more