When financing or refinancing an existing mortgage, you need to understand how the interest rate is calculated. There are two main concepts with regard to the interest rate of your mortgage: the interest rate and the Annual Percentage Rate (APR). Most common is the APR. Any cost associated with the mortgage such as closing cost …
Author: elegant
The good news is that the Mortgage Forgiveness Debt Relief Act of 2007 allows borrowers who received a debt cancellation to avoid paying federal taxes on the amount. The law was introduced to help struggling home owners to get out of their underwater mortgages during the recession. The bad news is it is limited to …
Do you remember the hay days of Home Equity Lines of Credit (HELOC)? Now that housing prices are on the rise, they are back again with a new twist. They come in as one-time loan and lines of credit. Both have seen an increase in 2013 but no way near the level of 2006 where …
Most people are not in a hurry to pay off their mortgage because it is the largest debt and the interest on your mortgage on your principle residence is tax deductible. However, many of us get a level of comfort by paying off the mortgage at least before retirement. Make an extra payment at least …
More often foreclosed homes are known as REOs (Real Estate Owned). REO indicates that the subject home or property has been foreclosed on and now owned by a bank (in most cases). Buying a REO property sometimes could provide a better deal for the buyer but it is not always the case. Here’s why. REOs …
Adjustable Mortgage Rates (ARMs) offers the lowest mortgage interest rate for a period of time allowing many who may find it difficult to get a mortgage to get into a home. Monthly payments for the initial period of time may be 15 percent lower compared to a traditional home purchase loan. However, the ARMs are …
If you are in the process of buying or selling a home any other type of property, pay close attention to contingencies contained on your buying (purchase) or selling (sales) contract. Contingencies are certain conditions or agreements between you and the other party that you or the other party agreed and have to meet within …