Related FAQs
Learn what LTV, CLTV, and HCLTV mean, and what impacts the maximum amount you can cash out when you refinance. Read more
Learn what LTV, CLTV, and HCLTV mean, and what impacts the maximum amount you can cash out when you refinance. Read more
Learn what a mortgage gift letter is and how it helps lenders confirm that the gifted funds for a down payment or closing costs are not counted as debt. Read more
Learn what a mortgage gift letter is and how it helps lenders confirm that the gifted funds for a down payment or closing costs are not counted as debt. Read more
Prepaid costs are payments made at closing for upcoming line items of your new home loan. They're called "prepaid" costs because you're paying for them before they are technically due. The most common kinds of prepaid costs are homeowners insurance, property taxes, and mortgage interest. These are paid into an escrow account to ensure that you have money to pay your bills when they become due. Read more
Prepaid costs are payments made at closing for upcoming line items of your new home loan. They're called "prepaid" costs because you're paying for them before they are technically due. The most common kinds of prepaid costs are homeowners insurance, property taxes, and mortgage interest. These are paid into an escrow account to ensure that you have money to pay your bills when they become due. Read more