Tag Archive: mortgages

May 04

Don’t Get Caught in the Rental Trap!

Don’t Get Caught in the Rental Trap! There are many benefits to homeownership. One of the top benefits is protecting yourself from rising rents, by locking in your housing cost for the life of your mortgage. Don’t become trapped A recent article by Apartment List addressed rising rents by stating: “Rents are up 2.7% year-over-year at the national level. Year-over-year …

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Sep 04

Homebuying Step 3: The Search

STEP 3 The Search You’re really doing it! You know what you can afford and you’ve got your pre-approval letter. But before you buy the home of your dreams, you’ve gotta find it first. Don’ts – Don’t worry about color. It can be changed. It will be changed. Assume you will have to paint when moving …

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Feb 02

Where Are Interest Rates Headed in 2016?

With interest rates still below 4%, are you sitting on the fence … act now and purchase a new home, or, wait until next year? However, if you look at what the four major reporting agencies are predicting for 2016, it may make the decision for you. The chart below averages the predictions by quarter. With the …

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Nov 23

Why the interest rate matters for your home purchase

Let’s suppose that you want to keep your mortgage payment around $1900 per month. With an interest rate of 5% you can qualify for a $360,000 home. However, if the interest rate is lower, at 4.25%, you can qualify for a home that’s $390,000. That’s $30,000 more home you can purchase for roughly the same …

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Jan 23

Will 20% Soon Be the Minimum Down Payment on a Home?

Some say that the looming regulatory tidal wave for home mortgages is about to break upon us… Several government agencies are reviewing data to determine what will be the minimum down payment required under the new Qualified Residential Mortgage (QRM) guidelines scheduled to be revealed in the next few months. In the original Mortgage Market Note issued by the FHFA, …

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Jul 24

Cramer talks about housing

An astounding read on housing A report from Wells Fargo reveals a booming mortgage business — and, a U.S. economy in fine shape… so says Cramer on MSN Money Cramer says, “Put simply, Wells Fargo is telling you that housing is back and that it is booming and that this moribund part of the economy is now …

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Apr 01

FHA to reject borrowers in minor credit disputes

NEW YORK (CNNMoney) — The Federal Housing Administration is about to make it even tougher to borrow money from Uncle Sam to buy a home. Starting April 1, borrowers in ongoing disputes with creditors over debts of $1,000 or more may no longer qualify for FHA-insured loans. Even borrowers with perfect credit scores can be …

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Mar 19

Buying a Home? The COST Is More Important Than the PRICE

We have often advised buyers to look at the COST of purchasing a house more than the PRICE of the home. Obviously, price is part of the cost equation. The other piece, assuming you are not an all cash buyer, is the mortgage rate. The mortgage rate to finance a purchase can have a dramatic …

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Jan 20

An assumable loan… do they exist anymore?

Actually, yes they do, and they are called the FHA loan. One of the rarely touted advantages of people taking FHA mortgages today is the fact that they are assumable. What that means is, when the FHA homebuyer of today is looking to sell his home, a qualified purchaser can “take over” their loan. Most …

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Dec 03

HOMES: the PRICE Is the Same, But the COST Is Less

There is more and more research coming out showing that it makes great financial sense to purchase a home today. Purchasing a home right now is a bargain compared to historic norms whether it be rent vs. buy ratios, income-to-price ratios or income-to-mortgage payment ratios. In addition to these benchmarks, it is interesting to look at the COST of a …

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