alameda broker: Three Questions to Ask Before Investing in Real Estate
- 07/22/19 07:39 AM
How can I increase my rate of return? The cornerstone of any smart investment strategy is to calculate your rate of return. With real estate this is done by running the numbers using an internal rate of return (IRR) formula that takes into account: Present Value (PV) - what am I paying out of pocket to get into this investment? Term (N) - what's my timeline and how long am I going to hold this investment? Periodic Cash Flow (PMT) - what's my monthly cash flow? Future Value (FV) - what are my net proceeds (after expenses) when I sell … (2 comments)
alameda broker: How to Understand Annual Percentage Rate (APR) on Your Mortgage Loan
- 12/26/18 07:32 AM
The federal government requires mortgage lenders to disclose the "annual percentage rate" (APR) whenever they advertise a loan program. But what is APR, and does it really matter to you? Here's the thing: APR lumps all your "finance charges" into your interest rate. As you can see from the list below, some of your closing costs are considered "finance charges." APR is calculated by adding all these finance charges to the total interest that you'll pay over the life of the mortgage. An annual interest rate is then calculated based on that total number. APR Closing Costs & Prepaid Items … (1 comments)
$15,000 Annual Exclusion The federal government gives each of us an allowance to gift anybody $15,000 per year without incurring any gift tax. This $15,000/year replenishes every year, and it’s $15,000 per person. So, theoretically, I could gift every person that I know $15,000 today, and then another $15,000 next year and the year after, and there would be NO gift tax.
$11,180,000 Lifetime Exclusion What most people don’t realize, is that there’s a second allowance of $11.18mm! In other … (1 comments)
alameda broker: Why Do I Have to Pay for a Rate Lock Extension?
- 10/01/18 05:46 AM
Why Do I Have to Pay for a Rate Lock Extension? Here's the scoop: mortgage rates are determined by mortgage bond prices. Mortgage bonds trade in what's known as a "To Be Announced" (TBA) market. When you commit to a rate lock, the lender is agreeing to deliver your mortgage to the bond investor within 30 days, 45 days, etc. That's where rate lock timeframes come from. So in essence, bond investors are trading empty buckets of mortgages that are scheduled to be filled within certain timeframes.
When your mortgage loan takes longer than expected to close, the mortgage lender … (1 comments)
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