The decision between a 15-year and a 30-year mortgage is one of the most significant financial choices a homebuyer can make, setting the trajectory fo...
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In the ever-evolving landscape of real estate financing, an often-overlooked option presents a unique opportunity for both buyers and sellers: the ass...
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A cash-out refinance is a powerful financial tool that allows homeowners to access the wealth they have built in their property. Unlike a traditional ...
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When embarking on the significant journey of securing a mortgage, one of the first and most crucial decisions is choosing where to obtain your loan. T...
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Navigating the mortgage landscape requires understanding the fundamental categories of home loans, primarily the distinction between conventional conf...
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For many homeowners, managing multiple high-interest debts can feel like a constant financial battle. Between credit card bills, personal loans, and o...
Read MoreIf your mortgage balance exceeds the applicable debt limit ($750,000 or $1 million), you can only deduct the interest on the portion of the debt that falls within the limit. For example, if you have an $800,000 mortgage, you can only deduct the interest attributable to $750,000 of that debt.
Closing costs are the fees and expenses you pay to finalize your mortgage, typically ranging from 2% to 5% of the home’s purchase price. These are separate from your down payment.
Yes, the “Square Foot Rule” is often considered more precise. This method estimates annual maintenance costs at $1 per square foot of livable space. For a 2,500-square-foot home, you would budget $2,500 per year. Like the 1% rule, this is a guideline and should be adjusted based on the specific factors of your property.
Your credit score is calculated using the information in your credit reports. The most common model, FICO®, breaks down like this:
Payment History (35%): Your record of on-time payments for credit cards, loans, and other bills.
Amounts Owed / Credit Utilization (30%): The amount of credit you’re using compared to your total available credit limits.
Length of Credit History (15%): The average age of all your credit accounts.
Credit Mix (10%): The variety of credit you have (e.g., credit cards, mortgage, auto loan).
New Credit (10%): How often you apply for and open new credit accounts.
A larger down payment can help you secure a lower mortgage rate. This is because you are borrowing less money relative to the home’s value (a lower Loan-to-Value ratio), which the lender sees as less risky. Putting down less than 20% often requires you to pay for Private Mortgage Insurance (PMI), which increases your overall monthly housing cost but does not directly lower your interest rate.
