For many students and their parents, a college education is a top priority. With education costs continually rising, paying for a degree may seem difficult or impossible. Some parents consider using their homes equity to obtain funds for college but arent sure if that would be a wise move. Benefits of Using Home Equity for […]
When calculating the cost of homeownership, it’s important to include not only everyday costs, such as mortgage payments, utilities and property taxes, but also inevitable home-repair expenses. Some of the most common home repairs involve plumbing fixtures, patios, fences and driveways, heating and air conditioning systems, and painting both inside and out. Youll also likely […]
Roof damage can occur suddenly”for example, if shingles are blown off in a storm”or a small leak can gradually grow larger. A leaky roof can affect the inside of your house as well as the foundation. It can also affect your familys health by causing mold that can trigger allergic reactions and lead to breathing […]
Just as you want to put your best financial foot forward when applying for a mortgage to buy your first home, you also want to prepare your finances before refinancing a home loan. A mortgage refi can pay for a kitchen or bathroom remodel, for example, or for something as simple as replacing a homes […]
Homeowners insurance is an important financial safeguard to protect you, your home and other assets from potential disasters or accidents. Its also an added expense homeowners need to budget for. Depending on the size and location of your home, as well as which insurance provider you choose, policy prices can vary widely. To help you […]
House prices come with a lot of digits, but that shouldn’t scare you away from buying a home. A mortgage”as opposed to rent”allows you to slowly purchase your home over time. So, instead of paying rent and helping somebody else pay their mortgage, why not invest in your own property? According to the InCharge Institute […]
Home insurance may be one of the last things youll think about when buying a home, but in some situations, insuring your biggest asset isnt so easy. And without insurance, you wont be able to qualify for a home loan. Here are five things that can make getting home insurance difficult, or at least more […]
Home shoppers who haven’t checked their credit report months before applying for a home loan may be in for a shock when they visit a loan officer. A host of problems could pop up: Their credit score could be a little too low to qualify for the best rate on a mortgage, they’re using a […]
Asking a financial expert if theyre working in your best interest when giving you advice on your retirement account seems like a simple enough question. That question is now getting a little more complicated. Known as the fiduciary rule and set by the Labor Department to take effect in April 2017 ” but then delayed […]
Some mortgage lenders allow homebuyers to put down less than 20 percent of a houses purchase price, but those loans are riskier from a lenders perspective. A lender generally requires a buyer who puts down less than 20 percent to purchase private mortgage insurance (PMI) to protect the lender in case the borrower defaults or […]
The Department of Veterans Affairs (VA) assists active-duty military members, veterans and surviving spouses who wish to buy a house. The VA offers loans with fewer fees and competitive interest rates that can help military families afford to buy homes in a variety of financial circumstances. EligibilityActive-duty military members, reservists, National Guard and veterans are […]
If you want to buy a home, youll probably need to make a substantial down payment. Putting down 20 percent can help you avoid paying hundreds of dollars each month for private mortgage insurance. You may be thinking about using all the money in your savings account for a down payment, but that could be […]
When its time to file taxes, people want to claim as many deductions as possible. Home improvements are defined for tax purposes as work that increases the value of a home, extends its useful life or modifies it so it can be used for a new purpose. Examples include adding a new room, upgrading plumbing […]
One of the most important steps in buying a house is saving enough money for a down payment. Depending on the type of mortgage you obtain, you could have to put down as much as 20 percent, or significantly less. Even if your lender only requires you to put a small percentage of the purchase […]
The mortgage process can be complicated if you jump in without any prior knowledge on home-buying and lending. The best tool you can arm yourself with is an understanding of how your mortgage interest rate is calculated. Credit Can Make or Break You Your credit score will determine how reliable you are in the lending […]
Financial problems can strike at any time. An illness or injury can leave you or your spouse unable to work, or a childs or parents medical issue can require you or your spouse to cut back on work hours, take an extended period of time off, or quit. In such a situation, your family may […]
Mortgage brokers and other real estate experts can often help homebuyers find the best interest rate on a mortgage that fits their needs, but that doesnt mean borrowers shouldnt shop around so that they’re well informed before talking to an expert. Here are a few things consumers can do to get the best interest rate […]
If you’ve owned a home for several years and made responsible financial decisions, you may have built a significant amount of equity. Home equity is the difference between the current market value of your house and the amount you still owe on the mortgage. If the value is greater than the debt, you have positive […]
So you’re looking for a home loan? Before you find yourself up to your knees in brand new terminology, brush up on these common phrases: FICO scoreThese are the credit scores that the majority of lenders use to determine your credit risk, and the number makes a very big difference in terms of what interest […]
Saving up for a down payment is perhaps the biggest hurdle to buying a home for many Americans, but how much money do you really need to put down in order to secure a deal? By definition, a down payment is the amount of money a buyer spends up front to purchase a house. A […]
Mortgage lenders typically want borrowers to put down 20 percent of the purchase price toward a home. For borrowers who do not have a lot of money for a down payment, it can be difficult to qualify for a mortgage. Some lenders approve mortgages with less money down, but those borrowers are considered a higher […]
Whether youve owned a home for years or are buying your first home, purchasing insurance can be confusing. Some of that confusion can come from policy myths that are often not true. If ignored, thesefive home insurance myths could cost you in the long run. Flood coverage is standard. Flood insurance isnt usually part of […]
Most people who want to purchase a house cant afford to pay cash and therefore need to take out a mortgage. The type of loan you choose will depend on your financial circumstances and plans and can have a significant impact on your monthly costs, so its essential to understand all your options. Government or […]
Buying title insurance is a pretty straightforward process. A title company will walk you through the process and will do almost all of the work itself. Still, there are some things to know about how to find a good title insurance company and how much the service costs. When buying title insurance, look to your […]
Closing costs are 2-5 percent of the purchase price of a home, resulting in an average of $3,700 in fees for paperwork required to buy a house. Thats a lot of money to come up with when you may have already put everything toward a down payment. Some fees from mortgage lenders are required by […]
Homeownership is a dream for many people, but some take on more debt than they should. If you’re thinking about buying a house, consider your income and current and potential expenses. How Mortgage Lenders Decide How Much Applicants Can Afford Lenders look at the total gross income of all individuals applying for a mortgage. This […]
If you bought a house with a mortgage, odds are the lender required you to pay for private mortgage insurance (PMI). This insurance is designed to protect the lender if you stop making payments on your home loan. Although lenders typically dont require PMI if a homebuyer makes a down payment of at least 20 […]
Homes cost a lot of money to maintain. But are you spending extra money unnecessarily on upkeep? Here are seven of the most expensive mistakes you could be making in your home: 1. Using Traditional Light Bulbs.If you still have incandescent light bulbs in your home, you could be throwing a lot of money away […]
Many renters, especially young couples planning to settle down and start a family, debate whether to keep renting an apartment or buy a home. Depending on your financial situation and long-term goals, though, one option may be better than the other. To determine if its the right time for you to start searching for a […]
For seniors who want to continue to live in their homes during retirement, a reverse mortgage can be an attractive option. It allows seniors to access the equity theyve built up by paying their mortgages over the years and use that money to cover living expenses. Sometimes seniors who have taken out a reverse mortgage […]
What is a comfort letter, and why might you need to submit one? The mortgage process when purchasing a home can be tricky. There’s a ton of paperwork to read through and sign”so much that your hand might cramp up from the vast amounts of signatures required. But don’t worry if your mortgage lender requests […]
If you’re having trouble paying your mortgage, programs are available to help homeowners in situations like yours keep their houses or avoid foreclosure. Don’t wait to ask for help. Talk to Your Loan Servicer and a Housing CounselorIf you can’t pay your mortgage on time, contact your loan servicer. Explain the reason for the problem […]
A mortgage is likely the largest debt you will ever have to repay. The idea of having a mortgage hanging over your head for up to 30 years can feel daunting. With some sacrifices and discipline, you might be able to pay off your loan years ahead of schedule. Make Extra PaymentsSome mortgage lenders allow […]
Coming up with the down payment on a home can be hard enough, and one way to make a home more affordable is to spread out the mortgage payments over 30 years. But 30 years can be daunting, and that time can be cut down with a 15-year mortgage. Its a lot more expensive in […]
