When thinking about the interest rate for which you qualify, you should think about two things. How likely am I to pay back my debts? (Based on history not on opinions.) What will I be giving up if I do not pay back my debts? The more likely you are to pay back your debts, and the more valuable the collateral you are posting in exchange for the loan, the lower the costs of borrowing.
Read MoreAn FHA loan is a mortgage loan that is backed by the Federal Housing Administration, a government sponsored entity. The FHA was created with goal in mind to increase home-ownership throughout the nation. It accomplishes this goal by lowering the down payment required to purchase a home and providing guarantees to potential lenders through its mortgage insurance program.
Read MoreOne of the largest determiners of whether you should buy a home depends on how you will finance it. There are three ways you can finance a home, you can either pay for it outright in cash, you can borrow the money, or you can use a hybrid of the two. Because most people don’t have upwards of $200,000 lying around, and because most lending sources don’t cover the full amount of a home purchase, generally a hybrid approach between putting some money down and borrowing from a lending institution is used. That means the biggest question that needs to be answered is how much cash and how much debt should be used to finance your home?
Read MoreWhen trying to maximize the return on your investment there is a long list of questions that you should be asking yourself. Some of those questions include but are not limited to: What is the price of the home? What is the value of the home? How will I finance the purchase of the home? What will my monthly expenses be? What will my monthly revenue be? How much will my house appreciate over a, 1, 5, 10-year period? These are only a few questions you should consider. The list is much larger. Let’s begin unpacking some of those questions.
Read MoreFor many people, buying a home will be the biggest financial decision that they will make. As such, it should be treated with a tremendous amount of caution and rationality. Failure to do so could result in financial ruin and second order consequences such as strain on family and friend relationships, anxiety and depression, loss of stability and security etc. In order to prevent those consequences, you should gather the maximum amount of information about the future as possible to make the most informed decision today.
Read MoreRefinancing is a smart financial move when it helps you build equity more quickly. But unless done for financially sound reasons, mortgage refinancing can be a slippery slope to never-ending debt.
Read MoreShould I rent or buy? A loaded question with many factors to consider. Let’s start with location. Will renting cost less than buying in a given neighborhood? Have you considered surrounding neighborhoods that may be more affordable? Homeownership expenses add up fast when you factor in the down payment, closing costs, property taxes, insurance, plus upkeep and repairs. Even if you’ve been saving up, don’t reach out to a real estate agent just yet!.
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