Posts by Gregory Erich Phillips:
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 take out a $200,000 mortgage, a point is equal to $2,000. By doing this, you’ll pay more now, but you’ll be reducing your long-term costs. Like any financial decision, this isn’t necessarily a good move for everyone, though. As you decide if paying for mortgage points makes sense for you, speak with a local financial advisor about how a home loan can affect your long-term financial plan. 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
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 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… 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
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
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
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
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… Read more
With the worst of the foreclosure crisis seemingly behind us, we’re seeing a new trend in the housing market. This is the re-entry of people who previously lost a home to foreclosure. These so-called… Read more
As the US economy was smarting from the housing crash of 2008, the anticipated “next shoe to drop” was supposed to be in commercial real estate. While foreclosures on individual homes measure in the… Read more
In the days of the housing bubble, there seemed to be a new and exotic kind of mortgage loan being offered every day. It became difficult to keep track of all the loan types that were available! The… Read more
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… Read more
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… Read more
All-cash transactions have been a lasting trend in the surge of home sales over the past two years. All-cash bought homes oppose those bought with mortgages. However, studies that measure cash sales… Read more
