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 […]

Shopping for a mortgage can be overwhelming. Even if youve owned a few homes and have had a few home loans, chances are there are some mortgage options you dont know about. Here are four to ask a mortgage expert about: A 20 percent down payment isnt a must. The long-held view that at least […]

A job loss can be devastating, especially if it happens unexpectedly and you dont have a lot of money saved and cant find another job right away. Aside from the anxiety associated with being out of work and trying to find a new job, theres typically an added level of concern when it comes to […]

The higher a down payment is on a house, the cheaper the mortgage will be. Its simple math. The traditional down payment of 20 percent for a house is just that ” traditional. There are all types of loans that can range from zero down to 3, 5 or 10 percent of a homes purchase […]

If you’ve found the house of your dreams but are having trouble qualifying for a mortgage, you could ask another person to co-sign your mortgage. Here are some things to consider. Reasons to Have a Co-Signer Buying your first house, high credit card balances or a poor credit history are all valid reasons for having […]

Looking at homes for sale can be the fun part of buying a house. The real work comes when youre picking a mortgage lender that can give you the best loan for your circumstances. After detailing your income, expenses, down payment and a monthly mortgage you can afford, a lender will run a credit check […]

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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 […]

There are some obvious things that can hurt a credit score: paying your bills late, using too much available credit in proportion to your income, and defaulting on a loan. Some other financial transactions, however, don’t affect a credit score. You may even be surprised by them. Here are five things that don’t affect a […]

When you apply for a mortgage, a lender will decide how much money its willing to give you to put toward the purchase of a house. That doesnt necessarily mean that you should take out a loan for the full amount. In some cases, borrowing the maximum a lender will allow could leave you overwhelmed […]

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 […]

Germany leads the world in energy efficiency, followed by Italy, Japan, France and the United Kingdom, according to an international scorecard. The United States is tied for eighth with South Korea. What are other countries doing so much better than the U.S.? Can the big steps that Germany, for example, is taking to be more […]

Taking out a mortgage to buy a house is a huge step. The amount and terms of the loan will have a major impact on your financial picture for decades. That’s why you should choose a lender carefully. What to Do Before You Apply In order to qualify for an attractive interest rate, you need […]

First-time homeowners are faced with many realities of being “an adult, and one of the things that comes with owning a new home is making sure you have proper insurance. But not all insurances are the same. Just because you have insurance on your home doesn’t mean you’re protected from everything that could happen. In […]

If you need money for an important project, you might be able to finance it by accessing the equity you’ve built up by paying your mortgage. A home equity loan and a home equity line of credit (HELOC) are two options. Before you decide to use either, make sure you understand the key differences between […]

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Plan on applying for a home mortgage, car loan or new credit card? Lenders will be looking at your credit score to determine if youre a responsible borrower. The higher your credit score, the more likely a lender will qualify you and offer the best terms. Although boosting your score requires time and discipline, here […]

When selling a home, there are rules you must follow. If your house has mold, termites or there’s some old heating tank buried in the basement, and you know about it, you can’t pretend those problems don’t exist. Disclosure laws are in place, and require someone to disclose this important information before a sales contract […]

Shopping for a home loan? It’s best to do it within 30 days of a credit pull so your score doesnt drop. When you apply for credit, such as a car or home loan, you authorize lenders to inquire for a copy of your credit report from a credit bureau. Too many inquiries could lower […]

For generations, most home purchases were made by married couples. With many people postponing marriage to pursue an education and a career, more and more single adults are overcoming challenges to become homeowners. Meet Income RequirementsIf you want to buy a house by yourself, the lender will make its decision based solely on your income. […]

If you need money for home improvements, tuition or another purpose, you might be able to secure funds through a second mortgage. How Does a Second Mortgage Work? A second mortgage is a loan that allows a homeowner to borrow against the value of their house by using it as collateral. One option is to […]

Break-ins occur every day across the U.S., resulting in property damage, theft and, in some cases, injuries. The unfortunate reality is that anyone can become a victim; however, studies have found that criminals are much less likely to target homes with security systems. Reasons to Get a Home Security SystemInstalling a security system could give […]

When someone passes away, his or her house is generally left to a family member. Figuring out what to do after inheriting a house can be confusing and overwhelming, particularly when it is unexpected or when siblings become joint owners. People sometimes rush to make decisions, and sometimes, they put off making important choices. Either […]

Owing more money on your mortgage loan than your home is worth”commonly referred to as being underwater on a home mortgage”can seem hopeless. There were 6.7 million underwater homes in the U.S. at the end of the first quarter of 2016, representing 12 percent of all properties with a mortgage, according to RealtyTrac. The numbers […]

There’s a memorable phrase in the real estate profession of “Disclose, disclose, disclose. Those who don’t, don’t close, don’t close, don’t close.” Its a smart rule to follow, and not just to make a sale. The National Association of Realtors Code of Ethics goes into some detail about what agents should disclose to clients, though […]

If you’re between jobs or retired”or not working and considering retirement”you can still buy a home and get a mortgage that will require you to make monthly payments. While you don’t need a job to get a mortgage, what you do need is income. And there are many types of income that lenders will accept […]

Many individuals are beginning to identify with minimalism, as rising costs in real estate have generated a need for creativityat least when it comes to living space. According to U.S. Bureau of Labor Statistics estimates, it costs 32 cents per month to maintain any given square foot. That means that an additional 54% of your […]

Most people expect to pay off their mortgage and live in their house during retirement. Unfortunately, life doesnt always go according to plan. If a homeowner dies before paying off the mortgage, it could have implications for the estate and the persons heirs. Discussing the future and preparing for that possibility can make the transition […]

If you need financing to buy a house, one option you might consider is a balloon mortgage. It offers lower interest rates and monthly payments than some other types of loans, but it’s important to understand the terms and consider your future plans to decide if it makes sense for you. How It Works With […]

If youre looking to buy a new home and hope to stay there for the rest of your life, look ahead to what you might want in it as you age. Thinking of and paying for features that make a house more accessible now can be a lot easier than having to make modifications later. […]

If you need money for home improvements, college tuition or another purpose, you might be able to secure funds with favorable terms through a second mortgage. Before you do so, it’s important to make sure you understand the terms and potential risks. How Does a Second Mortgage Work?A second mortgage is a loan that allows […]

If you’re thinking of becoming a homeowner, you’ve likely spent time budgeting for additional expenses – property taxes, lawn care, a big-screen TV to fill up that extra space…you get the idea. But have you factored in protection for your new home? While you’re crunching numbers, remember to include homeowners insurance. A standard policy will […]

Buying a home on two incomes can be difficult enough, but it can be even more demanding if one spouse has poor credit. A poor credit score can make it difficult to qualify for a mortgage, leading to a higher interest rate on a home loan. A spouse with poor credit could be left off […]

Paying off your mortgage early and living mortgage-free so you can use the money for other things”such as travel and an early retirement”can sound like a pipe-dream thats impossible to get to, but it doesnt have to be. If you have a 30-year mortgage, there are a few ways to cut that time in half, […]

Renters insurance is relatively inexpensive, costing between $15 and $30 per month, according to the National Association of Insurance Commissioners. For less than $1 per day, renters can protect all of their possessions and not be held liable for an accident in their rental home. Even themost miserly renters can save on renters insurance by […]

If youre thinking about purchasing an expensive home, its important to understand how jumbo and conforming loans differ, and the pros and cons of each. Choosing carefully could help you save a lot of money over the term of your mortgage. Key DifferencesA conforming loan can only be used to borrow up to $453,100. For […]

Before you sign on the dotted line, take the following factors into consideration when purchasing homeowners insurance in order to make sure youre getting the best rate and proper coverage: Things to ask: How far away is the property from a fire department? Is it a professional or a volunteer-based establishment? Home insurance is bound […]

Affordability is a big issue for renters looking toward homeownership. Beyond the purchase price, putting together a 20 percent down payment is a big roadblock for many people. It doesnt have to be, however. While 80 percent of millennial renters say they cant afford to buy a house, according to an Apartment List survey, there […]

Owning a historic home provides old-world charm, but it can also pose challenges. Historic homes often need more maintenance, and outdated technology, such as heating units, could mean higher bills. If decorative fixtures need repair or replacement, the materials may be costly or no longer available. Painting the exterior and other renovations could require approval […]

Many lenders pre-qualify or pre-approve mortgage applicants, which can help considerably in the buying process. While the terms are often used interchangeably, there are some important differences to note. In general, pre-qualification is considered an initial step in which the applicant provides information on income, assets and debts. The lender may or may not require […]

A backyard pool can look like a lot of fun when youre house-hunting. Summer days full of swimming and splashing around your pool can be great fun, but sooner or later youre going to have to face the costs that come with a pool. Here are some of the costs of pool ownership: MaintenanceBefore buying […]

Title insurance can be one of those things that someone says you need when you buy a home, but you dont understand why. Without it, you could be left with a nagging question in the back of your mind: “Does the seller really own the property?” If the answer is no, it could be bad […]

If youre buying a house with cash only, you may have gotten a lower price for it and you certainly wont have to deal with a bank to get a mortgage loan. Another advantage is that you dont have to buy title insurance to protect your lender. Mortgage lenders usually require buyers to purchase a […]

Having good credit wont get you a mortgage by itself, but it definitely helps. A good credit score can result in a lower interest rate and better loan terms, while poor credit can lead to a higher interest rate for a mortgage. But its not impossible to obtain a home loan if you have poor […]

Before choosing a real estate agent, take these characteristics into consideration… Track Record Your agent should have a proven record that meets your needs. Digital Presence Agents must show their online strategy for reaching targeted buyers so that sellers gets results. Network A successful agent is plugged into the market on local and global levels. […]

Owning a home is probably on everybodys success checklist. Yet, it is a box that often goes unchecked for many years for those first starting out in the workforce. We all know it takes more than just the desire to buy a home in this day and age”if you have not been working toward it […]

Obtaining a mortgage is a little different when you’re self-employed. Reporting your income as a self-employed worker on Schedule C for income tax purposes can make qualifying for a mortgage loan or refinancing a little more complex. The reason being that proving consistent and reliable income as a freelancer can be more involved because you […]

Should you prioritize paying off debt or saving for retirement? If youre younger and have high-interest debt, tackle that first and pay beyond the minimum monthly rate. Youll be able to stop wasting money on interest and then focus on long-term goals. If you have low-interest debt but little retirement money, contribute to a 401(k) […]

With about 56.7 million people living with a disability in the United States, according to Census Bureau data, there are plenty of disabled people who may need help buying a home. The good news is, help is available. Here are some laws and programs designed to make homeownership more possible for the disabled: Federal law: […]

Unlike a second home, where a homeowner lives for a portion of the year, an investment property is property that the homeowner uses to generate income, and in most cases,is not occupied by the homeowner at any time. Trying to figure out if your next home falls under second home or investment home status? Ask […]

For the self-employed, applying for a mortgage can seem like an even more daunting task, especially if you can’t predict your monthly income. But although there may be a few additional hurdles to clear, the self-employed can certainly qualify for a mortgage, and the best way to do this is to be ultra-prepared. Although requirement […]

Buying a condominium can be a smart start to being a homebuyer, without many of the maintenance hassles of owning a detached home. Insurance through the homeowner association, or HOA, covers some areas of the complex, though each homeowner must have their own insurance to cover certain parts of their property and their belongings. Heres […]

Knowing that you’re ready to buy a home can be an exhilarating feeling, except it’s often followed by panic. While experience is the best teacher, there are some things you can do to regain control of the home-buying experience. One of them is getting accustomed to the terminology, especially when it comes to the various […]

New buyers can get overwhelmed by the additional expenses incurred during homeownership. Besides making monthly mortgage payments, homeowners may have to pay for gardening, pest control, pool maintenance, plumbing fixes, electrical work and more. But the good news is that tax time offers homeowners a number of deductions and credits not available to renters. Check […]

Just as an umbrella can protect you from the rain, an umbrella insurance policy can shield you from lawsuits if something unfortunate happens at your home. Homeowners insurance usually includes some liability coverage to protect your assets if someone is injured at your home. Umbrella policies can go beyond the $300,000 liability insurance that most […]