If you keep renting, at the end of the year, you have had a place to live and a pile of receipts that helped the landlord pay for his house. Deciding to buy a home will give you a place to live that is yours and all the things that come with that.
When you consider principal reduction, appreciation and tax savings, your monthly cost of housing could be much less than the rent you’re paying. The principal reduction included in each payment is like a forced savings account that increases as your mortgage balance decreases. Your equity in the property will also grow due to appreciation as the home goes up in value. The equity is part of your net worth and an investment in your family’s future.
The income tax savings can be an additional financial consideration if the combined interest and property taxes are greater than the allowable standard deduction.
Trends are showing that both tenants and homeowners are staying in their homes longer. It’s been said that whether you rent or own, you’re paying for the home. Do you really want to buy the home for your landlord? Check out your numbers on a Rent vs. Own and then, call us to help make it happen.
Factors that increase the risk that the loan will be repaid will proportionately increase the interest rate charged to the borrower. If the risk becomes too high, the loan will not be approved.
-Loan amounts – conventional mortgages above conforming limits as set by Fannie Mae and Freddie Mac are considered jumbo loans and generally have a higher interest rate.-FICO score – the lowest interest rate is reserved for the highest score; the lower the score, the higher the rate the borrower will pay.-Occupancy – borrowers occupying a home as their principal residence are considered a better loan risk than second homes and investment properties.-??Loan purpose – purchase transactions generally have the lowest interest rate with refinancing for better rates and terms being priced slightly higher. -An even higher rate might be charged for refinancing and taking cash out of the property.-Debt-to-Income Ratio – a borrower’s monthly liabilities divided by their gross monthly income develops a ratio that helps lenders to assess the borrower’s ability to repay the mortgage.-Property Type – some types of property are considered higher risk than others which could adversely affect the rate.-Loan-to-value – the lower the percentage of the loan to the appraised value of the property will generally lower the interest rate.
Any combination of these factors could limit a borrower’s ability to secure a mortgage at the rate initially quoted. Pre-approval by a trusted mortgage professional can be the best way to know what rate you can expect to pay. Please call for a recommendation of a trusted mortgage professional.
-Teary bittersweet seller moving in a new direction. -Teary thankful buyer.-Teary seller and buyer hugging.-Teary Realtors.
So kind to also receive their testimonial of our services: “If you’re looking for the best service in real estate, we highly recommend Mt. Charleston Realty. We have used their services to buy and sell property.The Tomashowski Family was with us every step of the way offering their guidance and expertise. We couldn’t have done it without them!”Gratefully,Read and Carol Schrotel
??Looking at “Right” homes - price, size, amenities, location??Find the best loan - rate, term, type??Uncover credit issues early - time to cure possible problems??Negotiating power - price, terms, & timing??Close quicker - verifications have been made
There is a significant difference in having a trusted mortgage professional take a loan application and run all the necessary verifications compared to going through calculators on a lender’s website. Beside the peace of mind, the cost of being pre-approved is a bargain and generally, limited to the cost of the credit report.
Even if a person has been pre-approved, a second opinion from a different lender may be a good option. It can verify there is a good deal or you’ll discover that you can improve it. Either way, it works to your advantage. Contact our team if you’d like a recommendation of a trusted mortgage officer.
Most people want a home of their own to raise their family, share with their friends and to feel safe and secure. In most cases, it is also their largest asset. These suggestions can help protect your investment and make homeownership more enjoyable.
??Don’t overpay for your home??Maintain your home to protect its value??Minimize your assessed value to lower property taxes??Make extra contributions to save interest and build equity??Validate the insured value of improvements and contents??Be aware of current surrounding property values??Make mortgage interest payments deductible??Invest in capital improvements that increase market value??Don’t over-improve the neighborhood comparables??Keep records of capital improvement & other maintenance
We’d like to be your personal source of real estate information and we’re committed to helping from purchase to sale and all the years in between. If you need assistance with any of the items mentioned in this article or need a recommendation for a service provider, it would be our pleasure to help.