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 […]
Lenders and Mortgage companies will often publish “teaser” rates to draw buyers but these rates are not always available to all buyers. Let’s review a sample situation. Suppose a monthly loan payment for an advertised rate convinced you to make an offer on a home for sale. And then after you negotiated and signed a […]
Don’t lose your ability to deduct mortgage interest from your taxes by not properly handling the mortgage loan paperwork when taking money from a relative to buy a home. Especially if you might become their heir. Home mortgage interest can only be deducted if the loan you accept is a secured debt and you sign […]
“It’s impossible to get low down payment loans.” – MYTH! FHA down payments are as low as 3.5% for a credit score of 580 or higher. USDA may have 0% down options available in some areas. FNMA has 3% down payment options. Freddie Mac has the Home Possible Advantage program at 3% if your credit […]
Let’s do some quick comparisons of cost between 1966 and today. A gallon of gas was cheaper at $.32 where today it is $2.49. A dozen eggs were $.60 and they have doubled to $1.33 unless you buy specialty eggs then they are $3 to $4. Then another staple, a gallon of milk was $.99 […]
Most American believe that they will have a car payment and a house payment for the rest of their lives. But if you get a plan and a little discipline you don’t have to be in that majority. You plan should be to make additional principal contributions to your fixed-rate mortgage which will shorten the […]
There is a popular saying “burning the candle at both ends” which we often determine to mean being an A+ personality and working harder than the average person. But what if burning both ends gives you an unexpected benefit? Let’s use the analogy that the candle is your home mortgage and getting it paid off […]
Since 2009, mortgage rates have been below five percent. With rates this low for this long, you would think that existing homeowners or homeowners with Fairfax homes for sale would take the opportunity to refinance. Estimates are around 6.5 million borrowers could benefit with monthly savings if they refinanced. Rodney Anderson, who has a weekly […]
