Refinancing: there are three reasons to refinance. 1. Lowering the cost of your housing, 2. To shorten the term of your mortgage loan and pay it off quicker, or 3. To use the equity in your home for another purpose like paying off credit card debt or home renovations. In today’s market, you can replace […]
A decade ago, some homeowners lost their homes to foreclosure or set up a short sale to get out from under the debt during the mortgage meltdown that caused the Great Recession. Lenders forgave all or part of the debt owed them in most cases. Again, in the early ’90s we had the Savings & […]
Willie Sutton was an American bank robber and he was asked why he robbed banks. He answered, “because that is where the money is!” He stole about $2 million during his 40-year career. However, internet scammers are stealing much more by using phishing schemes and preying on unsuspecting home buyers. These scammers know where to […]
Lower rates on mortgage loans not only help you amortize your loan faster you will also have a lower monthly payment. A $250,000 mortgage at 4.5% for 30 years will have a $1,266.71 combined monthly payment. At 4%, the same loan will have $1,193.54 combined monthly payment saving you $73.18 a month and at the […]
When people are thinking of buying a home the most attractive option is to fork over the least amount as a down payment. Most people want to have cash available to furnish their new home and as a base for any unexpected expenses that might arise after purchase. Some buyers won’t have these options because […]
A reverse mortgage loan allows the homeowners to borrow money against their home while they still retain the title to the property. There are no monthly payments required on a reverse mortgage loan. However, once the homeowner moves out of the home or passes away, the reverse mortgage becomes due and payable. With no monthly […]
In 1913, the 16th amendment allowed personal income tax and one of the allowable deductions was mortgage interest paid on your principal residence. A follow up in 2017, Tax Cut and Jobs Act reduced the maximum amount of acquisition debt to $750,000 from $1,000,000. Acquisition debt is the amount of debt used to buy, build […]
When we shop for home loans, we often gravitate toward the ones the require less down payment or are more lenient with credit scores. Often that can turn out to be an FHA loan. Then you get stuck with mortgage insurance premiums. On a $265,000 FHA mortgage that can add $200 extra to your monthly […]
Need some money? Want lower interest rates? Then a home equity line of credit or HELOC may be the answer for you. It is a mortgage loan that homeowners can use as-needed. Any lender like a bank will review and approve it for a specific amount based on the amount of equity you have available […]
Any lender and any borrower can agree on a set of rates and terms, but the IRS does have certain rules that control this type of transaction specifically when the parties are friends or family. Some of the applicable rules are that the loan must be done in a business-like manner as a written note […]
