Posts Categorized: Mortgage Basics

Is My Mortgage a Tax Deduction? Yes, owning a home also comes with many qualified mortgage tax deductions, also called tax write-offs. To claim your mortgage interest tax deductions, you must itemize your taxes instead of taking the standard deduction. Your Mortgage Tax Deductions There are several components to a mortgage that allow for mortgage…

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This past year has been a tremendous one for homebuyers and refinancers, with near-record setting lows for mortgage rates across the country. As we head towards another new year, the question on everyone’s mind has become: will we see the trend of low rates continue into 2020, or are we in for an increase? Current…

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When people think about buying a home, they likely envision attending open houses and picking out new paint colors, not securing a mortgage. While getting a mortgage isn’t as glamorous as other aspects of buying a home, it is arguably the most important step in the process. Without a mortgage, most people wouldn’t have a…

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How does mortgage amortization really work? A fixed rate loan can also be referred to as a fixed payment loan – However, the amount of principal and interest paid changes with each payment. Interest Paid – The math behind “amortization” or paying a loan off in a fixed period of time starts with the amount…

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APR (Annual Percentage Rate) Comparing the cost of Home loans When you see a loan rate advertised, you’ll also see a corresponding APR (4.5%/4.762% APR). This Annual Percentage Rate is the total cost of your loan (interest and fees) expressed as a single number. The purpose is to give you one number for comparing multiple loans.…

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Know what factors influence the actual rate for your loan. Securing the lowest possible rate has less to do with scouring ads and more to do with the particulars of your transaction. Lenders typically pick the best scenario as the basis for advertisements. Unfortunately, best-case doesn’t apply to every loan.   Here are some factors that…

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Here are Mortgage DOs and DON’Ts to follow during your loan process. DO: Keep All Records in Good Order. Availability– Keep your financial records close at hand in case updates are requested. Income– Be aware that underwriters typically verify your income and tax documents through your employer(s), CPA, and/or IRS tax transcripts. Hold onto new…

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Mortgage Rate Lock

Rate Locks: Why do longer ones cost more? It’s all about risk. Between the times you make application and close your Home loan, interest rates will do what they always do – change. At times, the rate of change is exceptionally volatile, even from one minute to the next. “Locking in” your interest rate protects…

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Rising Mortgage Rates and Affordability: How Much Can You Finance with $960/Month? As rates rise, affordability dwindles. If you want more home for the same monthly payment, acting before mortgage rates rise further may be a direct path to success. Each example here shows the principal and interest payment for a 30-year, fixed-rate loan. 1-…

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One Thing You Must Know About Mortgage Rates The lowest mortgage rate is the best, right? The lowest rate certainly sounds best. But did you know the lowest rate doesn’t always mean the lowest cost? Mortgage interest is just one component of the real cost of owning a home. Interest rates are a reflection of…

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If you are saving up to buy your first house or wonder if you have enough equity to trade for another, you may be relieved to know that for most buyers there are still low down payment options available. $0 Down: VA (Veterans Administration) and USDA (US Department of Agriculture) both offer a zero down…

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