When you shop around for a loan, you may encounter the term APR or annual percentage rate. Some people think that interest rates and APRs are the same, but in reality, there are subtle differences between the two.

This article will explain what an APR is and how it's calculated and applied when deciding which loan is best for your goals.

What is APR?

Homebuyers usually look at interest rates attached to loans and pick the ones with the lowest rates. However, the lowest rate doesn't always mean it's the most affordable loan. Relying solely on interest rates to determine affordability ignores other factors like fees attached to the mortgage.

However, when looking at the annual percentage rate, you'll have a more precise and complete

The popularity of VA loans has soared in recent years, surpassing the 1 million mark in 2020, and is on pace to break that record in 2021. But despite the success of the VA home loan program, there is still some skepticism among prospective homebuyers when it comes to VA loans.

Read the top myths about VA home loans and learn the truth behind them so that you can make the best decision on whether or not a VA home loan is the right option for your specific requirements.  

Myth 1: Certification is a cumbersome process

The first step in the VA home loan application process is getting an official verification from the VA Office. This certification will assert that the veteran, active-duty military member, or spouse has met the basic eligibility

If you own an investment property, you already know that getting a mortgage for this type of property is different than a refi of a primary home. If you recall, the qualifying requirements for getting an investment loan are more stringent than a primary home loan. 

Let's take a look at everything you need to know about refinancing an investment property.

Why Refinance Your Investment Property?

Owning a second property comes with costs, and some may feel that these additional costs tie up too much of their free cash flow. Others choose to refi to free up some money for repairs or improvements to the property. 

If this sounds like you, it could make sense to refinance into a better rate --possibly lowering your mortgage payment --and

Ever wonder why it's essential to keep your debt in check when applying for a mortgage or what debt matters to your approval? This article will help you answer these fundamental questions so that you're in a great position to get approved for a home loan.

All About Debt-To-Income Ratio (DTI)

Your debt-to-income ratio (DTI) is one of the most critical metrics lenders use to determine how much home you afford because it directly influences the monthly payment you can qualify for.

DTI is a ratio that compares your existing monthly payments with your gross monthly income before taxes. Depending on the mortgage program and your qualification metrics, two types of calculations are used in mortgage qualification: 

• Front-end DTI -looks at the

Veterans have benefits awarded exclusively to them for their dedication and service, including disability and education compensation, career training, health care, and even home loans. However, with federally-funded home loans, there is more than one option. When it comes down to it, what is the best – FHA loans or VA loans? This article will help you understand and make an informed decision on which loan is best for you. 

FHA Loans

An FHA loan is a US Federal Housing Administration mortgage insured by the government and provided by an FHA-approved lender. The requirements for FHA loans are not that hard to obtain, especially when it comes to the credit score. For example, some of the requirements for FHA are: 

• A credit score of 580 or

An interest-only mortgage starts with payments that only pay down the mortgage interest. Generally, this makes your monthly payments lower than a typical mortgage payment. This option is attractive for those who cannot afford high mortgage payments. However, it has its drawbacks if you're not careful. Let's explore the benefits and disadvantages of interest-only mortgages. 

Benefits

• Interest-only loans give you time to increase your income. Are you expecting an income increase in the next few years? Then an interest-only loan can be advantageous. For example, let's say you're in a lower management position right now but on track for a promotion in the next year or so. Once you move up, your earning power will also increase. An

A home equity line of credit (HELOC) is a type of mortgage loan that acts similar to a credit card, except the line of available credit is tied to your home's equity. So instead of using funds advanced to you by a creditor, you use the cash from the value of your home.

HELOC Benefits

• Lower Interest Rates  HELOC interest rates tend to be lower than personal loans or credit cards. 
• You Only Pay For What You Use - You're charged interest only if you withdraw funds. 
• No Closing Costs - HELOCs often have low or no closing costs, making them an attractive alternative for small loan amounts. 

Applying For a HELOC 

Similar to applying for a mortgage, there will be a credit review and a home appraisal. However, some lenders may only

A condo refi is similar to refinancing any other home. The lender will look at your income, assets, and credit to ascertain your qualification. Plus, the condo will also be appraised to determine the property value.

However, since there are more variables when refinancing a condo, such as shared amenities, lenders usually conduct a condo review. 

It's worth noting that not every condo will require a review. A conventional loan refi of a detached condo typically won't need one since they're considered a single-family residence. The same goes for condo projects with four units or less.

Otherwise, it's safe to assume that you will need a review to refi your condo. Here's what that might look like. 

Condo Review For Government-Backed Loans

Renovations make your home more enjoyable. Plus, if you do them right, they may even increase your home's value. This comes in handy if you plan on selling your home in the future. But watch out! While some remodeling projects add value to your home, others do little to increase it and may even make your home less desirable to potential homebuyers.

Find out which renovations are the best and which are the worst.

Remember that Legacy Home Loans can help you get the funds to finance home renovations. With options like cash-out refinancing, FHA 203(k) rehab loan, a home equity loan, and HELOC, they can match you with a low-rate home loan to fund all your home repairs and upgrades. 

Best Home Projects to Boost Your Home’s Resale Value

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While the housing market remains vibrant for buying and selling, the supply continues to be an issue in these past years.

Low supply happens when there's an abundance of buyers but not enough houses for all of them. Many call it a "seller's market," which often results in a bidding war as multiple buyers compete for the same property. Here is how you can still get your dream home despite high competition. 

The Anatomy of a Bidding War

A bidding war in real estate happens when two or more parties compete for the seller's acceptance of their offer. This stressful situation can be intensified if the owner or listing agent knows there's a lot of interest and propose that everyone submit another higher and better offer.

Thus, you have now