home buying: 3 Ways to Improve Home Buying Power
- 08/19/19 12:01 PM
If you or anyone you know is buying a house this summer, chances are you’ll be dealing with competing for offers and low inventory issues. Here are three ways to avoid getting priced out of the house you want: 1 – Consider Your Overall Debt Strategy For example, what would it look like if you used some of your down payment funds to pay off other debts instead of using those funds for a down payment? This may open the door to getting you qualified for a larger mortgage so you can bid higher on the house. Plus, home loans often carry … (1 comments)
home buying: 3 Ways to Get Prepared for Home Ownership
- 02/25/19 09:20 AM
1: Prepare Your Credit Mortgage lenders typically require at least 24 months of good credit history in order for you to qualify for a mortgage. It's normally a good idea to have a few credit cards, a few installment loans, and 24-month history of making rent payments on time.
2: Prepare Your Cash Flow Mortgage lenders typically require less than a 43% debt-to-income ratio in order to qualify for a mortgage. This means that your total monthly debt payments (including the new mortgage payment) should be no more than 43% of your monthly income.
3: Prepare Your Savings Mortgage lenders typically require … (2 comments)
1 - How do ARMs work? Most ARMs have an initial note rate that is fixed for a period of time... usually 3, 5 or 7 years. See Figure 1 for details.
After the initial fixed period, your mortgage interest rate would change based on adding the then-current index, to the margin. See Figure 2 for details. It's important to pay attention to the "caps" on your loan because these caps indicate how much … (1 comments)
Why Do Appraisals Matter? Mortgage lenders base your loan amount on the LESSER of the appraised value or the purchase price. Here's an example: You sign a contract for a $200,000 home with a $10,000 (5%) down payment. Your loan amount, in this case, would be $190,000 (95% of the purchase price). The appraisal comes back at a value of $190,000 The mortgage lender is no longer willing to lend you $190,000 because that would … (2 comments)
Here are four questions that can help you make a more informed decision when comparing a 30-year fixed rate mortgage vs. a 15-year fixed rate mortgage. 1 - What will I do with the difference in cash flow? There are two main benefits that a 15-year mortgage has vs. a 30-year mortgage: 1 - Fifteen-year mortgages often carry lower interest rates vs. thirty-year mortgages. This could save you some money over time. (See Figure 1 that illustrates what would happen if the interest rate on a 15-year mortgage was 0.5% less than the interest rate on a 30-year mortgage.) … (3 comments)
home buying: 4 Questions to Ask Before Choosing a Mortgage or Buying a Home
- 08/13/18 08:24 AM
These four questions can help you make smarter mortgage and housing choices: Why is it better to buy a home right now vs. renting a home? Buying a home usually requires more upfront capital, more ongoing expenses and a longer-term commitment. Make sure to run the numbers with a professional to evaluate whether you'd be better off buying vs. renting. How can I make sure this fits into my short-term and long-term budget? Make sure to compare your options when it comes to: Choosing a down payment amount and strategy Choosing a monthly payment scenario Choosing a price range for … (1 comments)
home buying: The 90-Day Window for Cash Buyers: How it Works & Why it Matters
- 08/06/18 07:12 AM
Congratulations on paying cash for your home! I just wanted to make you aware that the IRS gives you a 90-day window to put a mortgage on your property and gain the tax benefits associated with the coveted “acquisition indebtedness” status.
What is “Acquisition Indebtedness” and Why Does it Matter to Me? Any mortgage that is used to buy, build, or improve a primary or vacation home qualifies for “acquisition indebtedness” status. If you itemize your tax deductions, you can deduct the interest on up to $750,000 of acquisition indebtedness.
Is There a Deadline to Qualify for the Tax Benefit? … (2 comments)
home buying: 3 Reasons Why Buying a Vacation Home Could be a Great Investment
- 06/11/18 06:17 AM
1 - House Price Appreciation The average rate of house price appreciation in the US over the past 20 years has been over 3% per year. This means that if you bought a vacation home 20 years ago for $100,000, it would likely be worth over $180,000 today. If you used a 20% down payment, your $20,000 investment would have yielded more than an 8% annual rate of return.
2 - Ability to Rent Out the Property and/or Save Money on Hotels You may be able to rent the property for part of the year that you're not using it. … (2 comments)
When you pay cash for a property, you are missing out on the opportunity to earn a rate of return on that cash. In the illustration below, Option 1 is to pay cash for a $200,000 house. Option 2 is to use $100,000 of cash, and a $100,000 mortgage. If you go with Option 1, you’d be losing money by giving up the ability to earn a rate of return in an outside investment (such as stocks, bonds or another real estate property). If you go with Option 2, you’d be losing money by paying … (1 comments)
home buying: 5 Pitfalls to Avoid When Buying a Home |Manteca| San Joaquin County
- 05/29/18 05:21 AM
Here are five of the most common pitfalls associated with buying a home: House shopping before getting a solid mortgage approval: low housing inventory in many markets means that you'll be competing with multiple offers when you find a home that you like. Getting a solid mortgage approval BEFORE you start house shopping allows you to make a stronger offer when you find a home you like. This places you in a much better negotiating position, and it could possibly save your deal. Not considering the costs of sale (8% +): when you sell your house in the future, you will most likely need to sell the … (1 comments)
Mortgage Planning is the process of carefully evaluating your mortgage options and choosing the right mortgage strategies. Your mortgage is most often your single largest debt, and your home is most often your single largest financial investment. That's why mortgage planning should not be a do-it-yourself endeavor, but rather a collaborative effort with your Certified Mortgage Planning Specialist (CMPS®). Here's how the mortgage planning process works: STEP #1: OUR INITIAL CONVERSATION WILL FOCUS ON: What does your current housing and cash flow situation look like? What are your new housing and cash flow objectives? What large expenses should … (1 comments)
;)
;)
