refinance: Removing or Adding a Person to a Loan
- 10/26/21 05:15 PM
Removing or Adding a Person to a Loan In divorce situations, it is common, for the spouse who keeps the home to refinance to remove the other spouse from the loan. Equally as common, first-time buyers who don't have enough income to qualify may ask a parent to co-sign and must add their name to the mortgage. Another situation that requires removing or adding a person to a loan could be to qualify for a better interest rate. The difference in a minimally acceptable credit score and something that might be considered "good" could be as much as a 0.5% higher rate for … (3 comments)
refinance: Bi-Weekly is a Weak Choice
- 08/05/19 08:13 PM
Making additional principal contributions to your mortgage will save interest, build equity and shorten the term on a fixed-rate mortgage. The concept is sound but bi-weekly may not be the best way to do it. One strategy is to make a payment every two weeks throughout the year in the amount of half of your required principal and interest payment. Twenty-six half payments would equal thirteen full payments which would be one extra full payment per year applied to the principal. The practical problem with this approach is that lenders may not accept partial payments throughout the year. This means that you'd have … (0 comments)
refinance: Homeowner Tax Changes
- 01/15/18 01:52 PM
The new tax law that was signed into effect at the end of 2017 will affect all taxpayers. Homeowners should familiarize themselves with the areas that could affect them which may require some planning to maximize the benefits. Some of the things that will affect most homeowners are the following: Reduces the limit on deductible mortgage debt to $750,000 for loans made after 12/14/17. Existing loans of up to $1 million are grandfathered and are not subject to the new $750,000 cap. Homeowners may refinance mortgage debts existing on 12/14/17 up to $1 million and still deduct the interest, so long as … (4 comments)
Similar to an annual wellness physical, homeowners should consider an annual review of the financial elements of their home. It’s particularly valuable based on the fact that their home and its equity is generally, one of their largest assets. List of similar properties recently sold and currently available Information on challenging property tax assessment Refinance Analysis to: lower your rate shorten the term make improvements eliminate mortgage insurance remove a person from the loan eliminate credit card debt combine loans take cash out of the equity Equity Accelerator to retire the mortgage within a specific period of time Repairmen and … (0 comments)
refinance: At Least Consider a Shorter One
- 11/11/15 03:55 AM
At least consider a shorter one - 11/8/2015 Affordability and stability are reasons homebuyers choose a 30-year fixed rate mortgage. It makes the payment lower than a 15-year mortgage and the principal and interest portion of the payment will be constant for 30 years. A common belief among homeowners for decades was that they would always have mortgage payment. The Great Recession has caused many individuals to rethink that concept and make plans to get their home paid for sooner. For people who can afford it, shorter term mortgages will provide a lower interest rate and build equity faster. A 3.09% 15-year fixed-rate mortgage compared to a … (2 comments)
refinance: Refinance to Remove a Person
- 11/25/13 06:26 PM
Refinance to Remove a Person Most people are familiar with the various reasons a homeowner refinances their home which generally result in two major benefits: saving interest and building equity. There is however another reason to refinance which may not be as common which is to remove a person from the loan. In the case of a divorce, when one party wants to keep the home and the other party wants their equity out of the home, it is possible for the remaining party to refinance the home. If the equity is sufficient to justify it and the remaining owner can … (1 comments)
refinance: Mortgage Interest Deduction
- 09/14/13 01:44 PM
Mortgage Interest Deduction Originally, in 1913 with the Sixteenth Amendment, Income Tax allowed a deduction on any interest paid by a taxpayer. Prior to World War I, most interest was paid for business purposes and very little paid by individuals. Credit cards, revolving credit, student loans and home equity loans that would charge interest would not become popular for decades. However, by the 1930’s, the Federal Housing Authority was created to help people to finance homes. Later, other quasi-governmental agencies like FNMA, FHLMC and GNMA were created to help facilitate mortgage lending. Even though, Congress never intended to use this deduction to encourage … (0 comments)
refinance: Debt Relief = Income
- 06/28/13 07:36 AM
Debt Relief = Income Many times a homeowner might feel relieved being out from under the obligation of a mortgage they can’t afford even though the property was lost due to foreclosure or short sale. If a lender cancels or forgives debt, a taxpayer must include the cancelled amount in their income for tax purposes depending on the circumstances. The tax significance could be serious. Congress enacted the Mortgage Relief Act specifically to help homeowners who might be affected in the housing crisis that started approximately in 2007. The Act expired on 12/31/12 but was temporarily extended by Congress until December 31, 2013. This … (0 comments)
Removing or Adding a Person to a Loan In divorce situations, it is common, for the spouse who keeps the home to refinance to remove the other spouse from the loan. Equally as common, first-time buyers who don't have enough income to qualify may ask a parent to co-sign and must add their name to the mortgage.
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