Build Equity Faster

Posted on Posted in Investments, Real Estate

Equity is an asset and an appreciating home is an investment. While some people have resolved themselves that a mortgage payment is a normal part of life, others have set goals to get their home paid for as soon as possible. There are several strategies that will work but they all require persistent vigilance. A […]

1/2% Could Make a Big Difference

Posted on Posted in Real Estate

2015-02-01_16-14-08.png Over 50% of homebuyers don’t shop to find the best interest rate for their mortgage. While a buyer wouldn’t rarely purchase the first home they look at, they will accept the rate and terms offered by only one lender. While the borrower and the property affect the rate and terms that a lender may […]

Reducing Interest Expense

Posted on Posted in Mortgages, Real Estate

0% financing has induced car buyers into taking the plunge because it doesn’t cost anything to use someone else’s money. While mortgage rates are not at zero, they’re close enough that many buyers are applying similar logic. Qualified mortgage interest is deductible on taxpayers’ returns subject to the maximum acquisition debt of one million dollars. […]

Consider an Adjustable Rate

Posted on Posted in Mortgages, Real Estate

fixed rate mortgages as low as they are, most purchasers or owners wanting to refinance might not even consider an adjustable rate loan. The determining factor should be how long the person plans to be in the home and which mortgage will provide the cheapest cost of housing. For instance, if you compare a $300,000, […]

Opportunity Costs

Posted on Posted in Investments, Real Estate

Sometimes, there are costs associated with not taking a particular action. If a person left their money in a certificate of deposit earning 2% when they could have made an investment that earned 8%, the difference is the opportunity costs associated to not taking action. If a couple has a down payment and good credit, […]

What’s the Point?

Posted on Posted in Mortgages, Real Estate

Prepaid interest, sometimes called “points”, is generally tax deductible when a person pays them in connection with buying, building or improving their principal residence. When points are paid on a refinance, they are not a current deduction but have to be taken prorata over the life of the mortgage. For instance, if $3,000 in points […]

How’s Your IQ on QM?

Posted on Posted in Mortgages, Real Estate

The Qualified Mortgage Rule came into effect on January 14, 2014 as one of the results to the Dodd Frank Reform Act to protect consumers from predatory lending practices. This will affect the underwriting standards that the majority of lenders will use to qualify borrowers. The ability to repay rule states that financial information must […]