Posts by Gregory Erich Phillips
Mortgage Basics
How Mortgage Points Work and When to Pay Them
Mortgage points are fees that you pay your mortgage lender upfront in order to reduce the interest rate on your loan and, in turn, your monthly payments. A single mortgage point equals 1% of your mortgage amount. So if you… read more…
Mortgage Basics
Everything You Need to Know about the Secondary Mortgage Market
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… read more…
Home Buying
Advantages and Disadvantages of Buying a Townhouse
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.… read more…
Mortgage Basics
What Is a Mortgage Credit Certificate (MCC)?
Mortgage credit certificates (MCCs) can help with your tax bill in relation to your mortgage payments. MCCs come from originating mortgage lenders, and they turn the mortgage interest you pay directly into a tax credit, which is non-refundable. They are… read more…
Mortgage Basics
Understanding the Annual Percentage Rate on a Mortgage Loan
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 lists the APR figure as… read more…
Home Buying
What Is Home Buying Season?
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. What Is Home Buying Season?… read more…
Mortgage Basics
Should I Get a Loan Through a Mortgage Company or Bank?
Before buying a home, you will need to choose who you’re going to work with through the homebuying process. This starts with your real estate agent, though your mortgage loan officer can be almost as important. They can advise you on refinancing or home equity loans if you already own a home. A financial advisor can also… read more…
Mortgage Basics
What is a Good Offer for a Home – 3 Things to Consider
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…
Mortgage Basics
What Is Single-Payment Mortgage Insurance?
If you buy a house with less than a 20% 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 possibility of a default. It does not protect you, the buyer, but it does give you the benefit of buying a… read more…
Mortgage
All About FHA Purchase Loans
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 option in the marketplace available to the population at large. (Zero down payment loans are only available to veterans and… read more…
Home Buying
What Is the Typical Down Payment on a Home Purchase?
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 rule was that homebuyers… read more…
Mortgage Basics
The Tax Advantage of Making an Extra Mortgage Payment
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 strategizing… read more…
Mortgage Basics
Low Down Payment Mortgage Options
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 prior to taking on a mortgage for a home. Even the unexpected and regular maintenance that arises from owning a home can… read more…
Real Estate Investing
So, You Want to Invest in Real Estate…
Despite the extreme ups and downs of the last decade, savvy investors know that real estate can be one of the best ways to put your money to work for you. Investors were the first buyers to return in force to the housing market after the big crash. Seeing the opportunity to make a profit,… read more…
Home Selling
The Hidden Costs of Downsizing Your Home
With shrinking savings, and retirement incomes failing to keep pace with inflation, older Americans are looking for alternative ways to save money and increase their cash flow. In many cases, they are also looking for ways to simplify their lives.… read more…
Insights
Consumers Hoarding Cash – Temporary Trend or New Normal?
Five years after the Great Recession and resulting financial crisis, the economy still has not recovered to the degree that economists and policy makers had hoped. Unemployment is on the decline, the threat of deflation has abated, and the stock market is at all-time highs. Yet Americans are not spending. Consumer spending is the final… read more…
Taxes
How to Lower Your Property Taxes
Let’s start with the good news: your house has most likely increased in value over the last couple of years. While the recession knocked most property values down to early 2000s levels, most of the country has recovered and home values have increased each year. The bad news is that your property taxes probably jumped… read more…
Home Buying
When to Leverage a 401(k) for a Home Down Payment
Wondering where to get the money to make a down payment on a new home? As home prices quickly increase, the amount to make an optimal 20 percent down payment also increases. Meanwhile, you may already have a substantial nest egg… read more…
Mortgage Basics
What Is an Assumable Mortgage?
You could be wondering, what is an assumable mortgage loan? Essentially, it lets you take over an owner’s loan on a property. All the terms of the original loan, including the rate, remain the same. So if you’re buying a… read more…
Mortgage Basics
Understanding the Home Appraisal Process
The home appraisal plays a key role in the home buying process, both for a purchase and for a refinance. That’s why it’s important to understand the ins and outs of the home appraisal process. In a purchase transaction, the… read more…
Home Buying
How Credit Score Affects Your Home Buying Power
If you are thinking about buying a home, one of the first steps you should take is to find out your credit score. Your credit score is one of the primary metrics used to determine whether you will qualify for… read more…
Credit Score
How To Build Great Credit in 3 Easy Steps
Establishing a good credit rating is one of the most important things you can do to get ahead financially. If you intend to buy a car or home, the financing will be both easier and considerably cheaper if you have a good credit score. If you have no credit history yet, you need to be… read more…
Home Selling
Selling Your Home to a Veteran? These Are the Fees You Must Pay
The Department of Veteran Affairs created the VA loan program to help veterans and their families buy homes. One of the advantages for the veteran is that the VA limits the number of fees the lender and title company are… read more…
Home Buying
Buying vs. Renting by Age Group
There are many factors to consider when deciding whether to buy a home or continue to rent. Many prospective buyers also wonder how the numbers of renters vs. buyers breaks down by age group. Although the market has changed over the last three years, the information from the 2010 census is the most accurate available… read more…