Reducing Interest Expense

Posted Posted in homes, Mortgage interest, mortgages, real estate

0% financing has induced car buyers into taking the plunge because it doesn’t cost anything to use someone else’s money. While mortgage rates are not at zero, they’re close enough that many buyers are applying similar logic. Qualified mortgage interest is deductible on taxpayers’ returns subject to the maximum acquisition debt of one million dollars. […]

Consider an Adjustable Rate

Posted Posted in homes, mortgages, real estate

Fixed rate mortgages as low as they are, most purchasers or owners wanting to refinance might not even consider an adjustable rate loan. The determining factor should be how long the person plans to be in the home and which mortgage will provide the cheapest cost of housing. For instance, if you compare a $300,000, […]

Money Down the Drain

Posted Posted in mortgages, real estate

Private mortgage insurance is necessary for buyers who don’t have or choose not to put 20% or more down payment when they purchase a home. It is required for high loan-to-value mortgages and it provides an opportunity for many people to get into a home who otherwise would not be able. The problem is that […]

15 Will Get You 3

Posted Posted in mortgages, real estate

Freddie Mac chief economist, Frank Nothaft, says that affordability, stability and flexibility are the three reasons homebuyers overwhelmingly choose a 30 year term. However, for those who can afford a higher payment, there are three additional reasons to choose a 15 year term: save interest, build equity and retire the debt sooner. First-time buyers have […]