1) Price. Studies show that properly pricing your home at the beginning results in a higher sale price. Of course, you want to get the highest possible price for your property. But overshooting can have its consequences. Read More
However, being a landlord is not easy or for the faint of heart. Depending on the number of tenants you have, the work involved can be very significant. As a landlord you have to screen tenants, make repairs, respond to tenant complaints, and collect rent monthly. Read More
The “gold standard” for a down payment is 20 percent of the home’s purchase price. If you can afford to put down 20 percent, you will avoid paying private mortgage insurance (PMI). Private mortgage insurance insures the lender against possible default.
Borrowers who put down less than 20 percent are considered by lenders as higher credit and default risks. In these cases, borrowers must purchase Private Mortgage Insurance (PMI), and pay for it every month along with their monthly mortgage payment. Read More
A single-family home offers more privacy and freedom, but also more upkeep. With a single-family home, you own everything: yard, roof, furnace, etc. and you will have to maintain and repair all these items yourself. If the lawn needs mowing, it’s your responsibility. The same goes for plowing or shoveling, putting in a new furnace, painting the exterior, etc. You will also have to solicit bids and deal with contractors yourself. Read More
There are several ways to tap your home’s equity. One is to take out a home equity line of credit (HELOC). A credit line will have a variable interest rate, but you pay interest only on the amount you use. Ideally, you should draw from your credit line and then pay some or all of the balance before drawing against the credit line again.
A home equity line is often less expensive than higher-rate borrowing options such as credit cards – and the interest may be tax deductible.* Read More
In addition to prevailing interest rates, how much you make in relation to how much debt you have will dictate how large a mortgage you will qualify for. Debt can trip up many would-be homebuyers, even those who make a good salary and have money for a down payment. The amount of money you will qualify to borrow is based on your total debt in relation to your total income. Read More
After you find the condo that you like and can afford, make the sale contingent on both a satisfactory inspection of the real estate and also the condo association documents and finances. It’s a good idea to hire a professional for each task. Read More
Once you have completed a mortgage application, the lender will provide you with a Loan Estimate within three business days. No matter how large a mortgage you want to borrow, whether it is $100,000 or $500,000, you will need to provide your lender several documents verifying your income and finances. The lender may not require verification documents prior to providing the Loan Estimate. However, you may want to gather documents that are typically requested. Read More
A fixed-rate mortgage offers the comfort and security of fixed costs that will not change over the life of the loan. Thirty years is the most popular term for a fixed-rate mortgage. But if you can afford the higher monthly payments, you can save tens of thousands of dollars in interest over the life of the loan by choosing a shorter term of 20 or even 15 years. Read More
With the potential for interest rates to rise in the coming months, is now the time to consider refinancing your current home loan? There are many reasons why you may want to refinance your loan, but the best way to decide if you should refinance is to compare the numbers. What will your monthly payments be with the new rate? How much will you save each month over what you are paying now? How long will it take you to recoup the costs of refinancing? Read More