Paying points (for a lower interest percentage) upfront on a mortgage can lower the total cost of the life of the loan. The points could be a few thousand dollars upfront. As an added bonus, points are tax deductible. Add up the monthly payments plus the cost of the points Read more…
If it is not too much trouble, some real estate professionals recommend requesting a lender for multiple pre-approval letters with different price ranges. The goal is to use it for negotiating with the seller where your pre-approval letter amount matches your bid amount to make it difficult for the seller Read more…
PITI is principal, interest, taxes, and insurance. Principal is the amount you borrow and you repay to the lender on a monthly schedule. Interest is the percentage that the lender is charging for your loan and you repay to the lender each month. Interest is tax deductible at year end Read more…
Budgeting is one of the fastest ways to get to home ownership. Make a budget each month based on how much you earn, how much you can spend, and how much you will save towards buying the home you want. Without a clear monthly budget, you may not be saving Read more…
Sometimes coming up with the down payment or getting a loan is not easy. If you have a lot of credibility with your friends and family, then you can work something out with them. For example, it is possible to buy a house with a relative who can help you Read more…
An annual percentage rate (APR) is the total cost of taking out the loan. By law, lenders are required to publish the APR. It is similar to the unit price (per pound/ per quart/ per 100 sheets) vs the retail price that allows borrowers to compare apples to apples. Sometimes Read more…
Tax deductions are not as straight forward as single family houses or condos. Your best bet is to get guidance from the co-op management company on how to much maintenance you can deduct. Generally the portion that covers the building’s real estate taxes are deductible. Flip tax is guided by Read more…
Before you start home shopping with an agent, it is recommended to get a preapproval letter from a bank or lender. The preapproval letter indicates that the bank is willing to lend you a certain amount (usually an amount greater than you are likely to spend). This will involve paying Read more…
Lenders depend on credit scores to determine the overall risk of the person receiving the loan. First, your credit history is reviewed to see if you have been making good on payments owed to perhaps an auto loan or a student loan. The history of repaying your loans without lateness Read more…
The Federal Housing Administration (FHA) provides insurances to lenders who offer mortgages to borrowers making low down payments of 3.5% of the sale price. Features of FHA loans: Low down payment with a minimum 3.5% of the sale price Easier to qualify than a conventional loan. Low credit score is Read more…