My firm handles real estate transactions regularly and clients often have questions concerning different kinds of mortgages. There are a few different types of mortgage loans currently being offered and each has it's unique benefits and drawbacks. Only you can decide what is right for your new home.
One of the most common types of mortgage is typically called a fixed rate mortgage. If you choose this type of mortgage, you will be charged a constant rate of interest for the entirety of the mortgage. Although the idea of a constant mortgage payment can be a comforting one, you should keep in mind these types of mortgage are usually associated with higher interest rates as a penalty for such security.
Another type of mortgage is typically known as a variable or adjustable rate mortgage. With an adjustable rate mortgage, your interest rate and payment will be the same for a specified period of time, perhaps five or six years, before fluctuating depending on the market rates. While this type of mortgage is considered more risky a fixed rate, it is important to keep in mind that there is a ceiling on your payment and that these types of loans often start with lower interest rates. Adjusted or variable rate mortgages can be ideal for people who are just starting out but anticipate steady increases in their salaries.
It is important to do your research before you decide to take on a loan the size of a mortgage. Before you do so, remember that an attorney can often times be useful in providing unbiased and accurate legal guidance. If you have any questions or concerns, you should consult a legal professional first.
Showing posts with label first home. Show all posts
Showing posts with label first home. Show all posts
Thursday, June 5, 2014
Wednesday, May 14, 2014
The HUD-1 Settlement Statement and How it Affects Your Future Home Purchase
There has been an important change made to the HUD-1 Settlement Statement, a form used during home closings to itemize all ingoing and outgoing funds. The Real Estate Settlement Procedures Act, also known as RESPA, requires that the HUD-1 Settlement Statement be properly filled out in each and every closing transaction involving a federally regulated mortgage loan.
Instead of the HUD-1 Settlement Statement, a new form called the Closing Disclosure Form should be used. The Consumer Financial Protection Bureau designed the new form so that home buyers can clearly identify their amount of their loan and the interest rate that will be due on it, as well as a projection of their monthly payments.
Additionally, buyers must be given the Closing Disclosure Form an additional three (3) days before the closing in order to give them ample time to consider the commitment of the mortgage loan.
It is important for all home buyers to review and carefully consider the paperwork involved at closing. A real estate attorney can help guide you through the process and answer any questions or concerns you may have.
Instead of the HUD-1 Settlement Statement, a new form called the Closing Disclosure Form should be used. The Consumer Financial Protection Bureau designed the new form so that home buyers can clearly identify their amount of their loan and the interest rate that will be due on it, as well as a projection of their monthly payments.
Additionally, buyers must be given the Closing Disclosure Form an additional three (3) days before the closing in order to give them ample time to consider the commitment of the mortgage loan.
It is important for all home buyers to review and carefully consider the paperwork involved at closing. A real estate attorney can help guide you through the process and answer any questions or concerns you may have.
Wednesday, April 16, 2014
Purchasing a Home? Here's a Few Tips
Purchasing a home, especially for the first time, is an important financial decision. Choosing a fix-up property can oblige you to extensive renovations and/or costly repairs while
1. Evaluate your finances.
It's standard to review your finances so you have some idea of the budget you'll be working with as you search for a house. However, it's also important to communicate with your lender and get a letter of pre-approval before you begin your search. Don't make the mistake of falling in love with a home without being able to make a serious offer on it. Get your paperwork in order first, so you'll have clear expectations about what you need and what can you offer.
2. Don't make an offer on a "fixer-upper" without thinking of the financial implications.
Renovating a home can be a fun and worthwhile project, but don't forget to calculate the cost of repairs, renovations, and time spent first. You can get a great deal on a home and end up using up those savings in repairs you didn't anticipate. Pay close attention to the home inspection and get estimates on any repairs you plan on doing.
3. When you calculate your budget for a home, make sure to consider the additional expenses homeowners have.
If you fall in love with a home priced at the top of the budget, make sure you consider the additional expenses of homeownership such as property taxes, fees from a homeowner's associations, and normal upkeep and maintenance of a home. If these calculated expenses put you over budget, consider other options. New homeowners will sleep easier at night knowing they have a solid financial buffer.
4. Use a real estate agent and an attorney you trust.
It's important that you have experienced people to help guide you through this process. A good real estate agent is invaluable when investing in a home. Your agent should be experienced with selling homes in the area you're looking to purchase in and easily available over phone.
1. Evaluate your finances.
It's standard to review your finances so you have some idea of the budget you'll be working with as you search for a house. However, it's also important to communicate with your lender and get a letter of pre-approval before you begin your search. Don't make the mistake of falling in love with a home without being able to make a serious offer on it. Get your paperwork in order first, so you'll have clear expectations about what you need and what can you offer.
2. Don't make an offer on a "fixer-upper" without thinking of the financial implications.
Renovating a home can be a fun and worthwhile project, but don't forget to calculate the cost of repairs, renovations, and time spent first. You can get a great deal on a home and end up using up those savings in repairs you didn't anticipate. Pay close attention to the home inspection and get estimates on any repairs you plan on doing.
3. When you calculate your budget for a home, make sure to consider the additional expenses homeowners have.
If you fall in love with a home priced at the top of the budget, make sure you consider the additional expenses of homeownership such as property taxes, fees from a homeowner's associations, and normal upkeep and maintenance of a home. If these calculated expenses put you over budget, consider other options. New homeowners will sleep easier at night knowing they have a solid financial buffer.
4. Use a real estate agent and an attorney you trust.
It's important that you have experienced people to help guide you through this process. A good real estate agent is invaluable when investing in a home. Your agent should be experienced with selling homes in the area you're looking to purchase in and easily available over phone.
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