If investors won't buy packaged loans from Fannie Mae and Freddie Mac, they don't have cash to buy loans from lenders. Then, lenders won't have cash to give you a mortgage to buy your house. With no one to give out home loans, the entire housing market grinds to a halt.
An elderly father no longer wants to care for his vacation home. His daughters, who are in line to inherit the vacation home, worry about the vacation home's cost basis if he transfers the vacation home to them prior to his death. The vacation home could be transferred to a living trust which could transfer the vacation home's ownership to the daughters upon the man's death.
When you're a real estate investor you may decide you want to create a limited liability company to hold your real estate assets and to protect you. When you use an LLC to hold your properties, you're limited in what kind of mortgage lender you can work with to get a mortgage. Mortgage lenders have to specialize in either residential or commercial real estate loans.
When you're buying a home it's really important to pay attention to what's located near and around the property. Facilities such as homeless shelters may deter future home buyers from buying your property. In addition if a business next door to the property you're buying has a lot of traffic that may prevent other buyers from wanting to purchase the property from you in the future.
A low appraisal makes it impossible to get financing to buy a house. If there is a financing contingency in the contract, buyers can back out if they cannot secure financing by a certain date. Without a financing contingency, buyers could be sued to force the sale of the home they agreed to buy.
What's the best way to prepay your mortgage? Is making extra mortgage payments every month or at the end of the year more useful? You can prepay your mortgage one of three ways: at the beginning of the year, each month or at the end of the year. Making extra mortgage payments at the beginning of the year works best but only by a little bit. Learn about your options for prepaying your mortgage.
Home loan borrowers sometimes break a mortgage loan lock, which means that he or she locked in an interest rate and then walked away from the loan prior to closing. Mortgage brokers dislike it when borrowers break a mortgage loan lock because it may put the mortgage broker in bad favor with lenders. Breaking a mortgage loan lock is a legal practice and an option for consumers.
If you've recently lost your job or find that you have less income than you used to, you may not be able to make your mortgage payments. Missing mortgage payments can damage your credit score. What can you do if you can't afford to make your mortgage payments? It may be difficult to sell your home in the current housing market so you may have to consider a deed in lieu of foreclosure or a short sale. When you don't have a job it's difficult to get your lender to modify your mortgage.
Deciding whether refinancing your mortgage is good for you depends on several factors including interest rates and closing costs. If the interest rates are low enough and the closing costs do not surpass the amount of money you would save refinancing your mortgage it would be a good idea. A good tool to use to decide whether the interest rates and closing costs are worth refinancing the mortgage is by going to eloan.com and using the amortization calculator.
Should we move to a new house in a neighborhood with better schools or stay where we are and continue to pay for private schools? The monetary benefits might be worth it, but you should also think about what response your teenage child might have.
