Buyer Tips

21 of the most common home buying questions Part 3 of 7

May 7, 2019

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3 min read

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That’s right, with the assistance of my lender they have polled the whole country have pulled together the 21 most common questions.

There will be a lot to go over so this will become a multi-part series covering the answers. This is part 3 of 7 if you missed part 1 and 2 it can be found on my YouTube Channel or Video Blog www.TemeculaRealEstateJournal.com

So Question number Question number 7 of the most common asked home buying questions. What is an escrow account? It’s confusing because when you buy a home you put money into escrow. So what’s an escrow account with my mortgage? A mortgage escrow account is an account that every single month the buyer or the borrower puts money into as part of your mortgage payment. So your payment includes; principle interest, taxes and insurance. The tax and insurance portion of your payment goes into escrow with your mortgage and your lender pays the county taxes and the home insurance for you, when they’re due. Its two less things you have to worry about when you are a home owner.

Here is Question 8 of the most 21 homebuyer or home owner asked questions. What is a refinance? A refinance is when a home owner or a buyer that has a mortgage takes their existing loan and they redo the mortgage. Why would they do that? Maybe the rates are lower than what they have, maybe they want cash out to pay off debt, invest in business, or buy another property. Whenever you’re redoing your existing mortgage to better the mortgage or to help you personally or professionally, that’s called a refinance. You are redoing your existing mortgage.

Last Question today is number 9 of the 21 most commonly asked homebuyer questions. What is a home equity line of credit or a HELOC? This is an additional mortgage called a second mortgage on your home. This gives you access to your equity. The great thing is, it’s a line that is available to you. That you don’t use unless you pay for it. The most common reasons to get a line is home improvements, investing in business, or paying off debt. So, it’s a way to have access to your cash without touching your first mortgage. It’s a great tool if you’re a home owner, I support you in getting one.

I hope this video with buyer tips has been helpful! As always with a mortgage…. every situation is different so I always defer to our lending partners to give you specifics for your situation. If you have been thinking about buying or selling and would like more information, please feel free to contact me directly at 951-506-5744 or email at [email protected]. There will be a slide at the end of this video on ways to contact us.

What is a home equity line of credit or a HELOC?

tomo92596

A resident of the Temecula area since 2003, Tom has been an active real estate agent since 2004. He has consistently been ranked in the top 5% of sales production in the Temecula market, and has produced over $80 million in career volume. He and his wife Maria have raised three children in the Temecula area with all three graduating from Chaparral High School.

When not listing real estate, selling real estate, or writing about real estate, Tom is trying to keep up with his grandson on their bikes, playing sports, learning Guitar, or trying to knock the rust off of his tennis game. Over the years he has coached hundreds of youth soccer, basketball, baseball teams. He was most recently coaching his grandsons pony baseball team.

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