Archive for October, 2017

Up-front Points to Lower the Rate

Monday, October 30th, 2017

When loans are quoted by lenders, most buyers pay attention to the interest rate but not so much to the points that may be charged along with the rate. A lower note-rate would obviously make the payments less. However, with a little analysis, you can determine how much points paid up-front can save a borrower […]

Debt Relief May Trigger Tax

Monday, October 23rd, 2017

The Mortgage Debt Forgiveness Act, originally passed in 2007, was extended three times to protect homeowners from paying income tax on debt that was relieved due to foreclosure, short sales or deed in lieu of foreclosure. A homeowner might feel a sense of relief without the obligation of a delinquent mortgage but just because the payments are […]

Indecision is Not a Decision

Monday, October 16th, 2017

There could be some legitimate reasons for not buying a home but indecision is not one of them. Indecision is rooted in not having enough information to move forward to own a home or continue renting. When you consider principal reduction, appreciation and tax savings, your monthly cost of housing could be much less than […]

Risk Rate Relationship

Monday, October 9th, 2017

Regardless of what a lender quotes on mortgage rates, the actual rate a borrower pays is based on a number of variables. Lenders determine whether to loan money and at what rate based on the risk involved with the transaction. Loan amounts – conventional mortgages above conforming limits as set by Fannie Mae and Freddie […]

Pre-approval is Good for Everyone

Monday, October 2nd, 2017

Buyer’s mortgage pre-approval is good for everyone in the transaction. It saves time, money and removes the uncertainty of knowing whether the buyer will be qualified after negotiating a contract. The direct benefits include: Looking at “Right” homes – price, size, amenities, location There is a significant difference in having a trusted mortgage professional take […]