The journey to homeownership is often symbolized by the quest for the perfect mortgage rate, but the financial responsibility extends far beyond that ...
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A balloon mortgage can appear as an attractive, low-cost entry into homeownership, but it carries a unique set of financial risks that borrowers must ...
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The journey to homeownership culminates in two critical final steps: the final walkthrough and the review of the Closing Disclosure. While they occur ...
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Navigating the world of home financing begins with a fundamental understanding of mortgage types and terms. A mortgage is more than just a loan; it is...
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Private Mortgage Insurance, commonly referred to as PMI, is a crucial financial product that enables millions of Americans to achieve the dream of hom...
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For most homeowners, their monthly mortgage payment encompasses more than just the principal and interest on their loan. A significant portion often g...
Read MoreWhen your mortgage is paid off, your mandatory monthly housing costs will decrease significantly. However, you must still budget for property taxes, homeowners insurance, maintenance, and utilities. It’s a great time to re-allocate those former mortgage payments toward retirement savings, other investments, or long-term goals.
Closing costs for an assumption are similar to a traditional purchase and can include:
Lender assumption fee (often $500 - $1,500)
Appraisal fee
Title insurance and search fees
Escrow fees
Prepaid property taxes and homeowners insurance
Itemizing: You list out all your eligible individual deductions (including mortgage interest, state and local taxes, charitable contributions). You choose this method if the total of your itemized deductions is greater than the standard deduction.
Standard Deduction: A fixed dollar amount that reduces your taxable income. For 2023, it’s $13,850 for single filers and $27,700 for married couples filing jointly. Many taxpayers now find the standard deduction is more beneficial than itemizing.
The Federal Funds Rate is the target interest rate set by the Fed for overnight lending between commercial banks. It is a short-term rate. When the Fed raises or lowers this target, it signals the beginning of a chain reaction that impacts the cost of credit for consumers and businesses.
Be polite, prepared, and direct. You could say: “I’m very interested in moving forward with your company, but I’ve received a Loan Estimate from another lender with a lower [rate/origination fee]. Is there anything you can do to match or improve upon that offer to earn my business?“ Having the competing document in hand is crucial.
