Posts by Gregory Erich Phillips:
Mortgage points are fees that you pay your mortgage lender up-front in order to reduce the interest rate on your loan and your monthly payments. A single mortgage point equals 1% of your mortgage amount. So if you take out a $200,000 mortgage, a point equals $2,000. So if you can afford to make these payments now, you can reduce what you’ll pay in the long-run. But it’s not the right move for everyone. As you decide if paying mortgage points makes sense for you, you may also want to find a financial advisor who can guide you in making the home-buying process easy and rewarding. Read more
When you finance a home with a mortgage loan, you and your lender do business on the primary mortgage market. But there is a secondary market by which the lender recoups the entirety of the funds it lent you by going through outside investors. These investors drive interest rates and underwriting standards to an even greater degree than the initial lender does. A basic understanding of secondary markets can help anyone considering a mortgage. And if you’re looking for a trusted guide to help you through the process, use SmartAsset’s financial advisor matching tool to get paired with a fiduciary financial advisor. Read more
With land in desirable neighborhoods at a premium, townhouses represent a growing share in the real estate market. Townhouses can be an attractive option for many new homeowners–offering something of a “middle ground” between single family homes and condominiums. A townhouse can give you what feels like a single family home in prime urban centers. However, there are some potential expenses, as well as limitations, that you should educate yourself about before deciding to buy a townhouse. Read more
A Mortgage Credit Certificate (MCC) is a tax credit given by the IRS to low and moderate income homebuyers. Generally the program is only available to first time homebuyers. Terms differ by state. An… Read more
You may find the Annual Percentage Rate (APR) on a mortgage loan a confusing aspect of the home financing. You can find the loan APR listed on the Truth in Lending (TIL) disclosure. The disclosure… Read more
If you’re ready to buy your first home, perhaps home buying might feel overwhelming. The housing market is fiercely competitive, so you probably won’t have much time to think about making your offer… Read more
In a competitive housing environment, buyers are educating themselves like never before. If you are thinking you might make an offer on a house or condominium, you have probably already done your… Read more
This year is shaping up to be another strong one for the housing market. The recovery has already been underway for two years, yet inventories and price appreciation suggests that the market still… Read more
The months of April through July generally account for more than 40% of a year’s housing transactions. This is when people think about whether to keep renting or if it’s time to buy a home. Read more
Before buying a home, you will need to choose your team. This starts with your real estate agent. But your mortgage loan officer can be almost as important to the project. They can advise you on… Read more
A provision of the Dodd-Frank financial reform bill of 2010, aimed to curb risky mortgage lending, went into effect on January 10, 2014. The intention is to certify that mortgages being offered to… Read more
So you’ve found your dream home. You’re ready to make an offer. But what is a fair price? Will there be competing offers? You don’t want to lose this house, yet you also don’t want to pay too much on… Read more
If you buy a house with less than a 20 percent down payment, and finance it with a conventional loan, you are going to have to pay private mortgage insurance. PMI protects the lender against the… Read more
We have examined the reasons why so many older homes are on the market. Conversely, we looked at why there are so few new homes available for purchase. If you are looking to buy a home, you may have… Read more
The most common way to finance a home purchase for first time buyers is with a loan through the Federal Housing Administration (FHA). The 3.5% down payment required by FHA is the lowest down payment… Read more
It cannot be ignored: rates are going up! Even the Federal Reserve Board has admitted as much. Rates for 30 year fixed mortgage rates are already more than one percent higher than a year ago. The… Read more
Most people have to borrow money in order to afford a house. No matter how big your mortgage is, though, you generally need to have at least some cash on hand for the down payment. Historically the… Read more
The mortgage lending landscape has changed dramatically since the bottom of the housing market in 2010. Driven by stiffening regulations and the implosion of the old sub-prime lenders, mortgage… Read more
You may have heard from financial planners, bankers and the like that adjustable rate mortgages (ARMs) are risky and dangerous. You may have heard that these types of mortgages drove many homeowners… Read more
If you are in the market to buy a home, chances are good that you have faced some level of frustration over the low inventory available for sale. This will be especially true if you are searching for… Read more
If you have a mortgage loan, you are well aware of the tax deduction you get each year for the interest. Once per year, all that interest you pay to your bank gives you a benefit as well. By… Read more
For a period of time, jumbo mortgage loans were almost impossible to get. That was because private and “portfolio” funding for mortgage loans effectively disappeared after the housing crisis of 2008.… Read more
The housing market has been booming for a while now. Thus it may come as a surprise that homeownership levels in the United States have actually been falling. In fact, the national percentage for the… Read more
Ever since the crisis in the housing market, and subsequent tightening of lending standards and regulations, all you seem to hear is how hard it is to acquire a mortgage loan, and how banks are… Read more
The days are long gone when you could buy a house without spending any money out of pocket. Lenders and regulators have determined that potential home buyers need to demonstrate some savings ability… Read more
