Mortgage Loans & Refinancing

Some of the closing costs include loan orientation fees, escrow fees, home owners insurance, property taxes, attorney fees, property inspections, private mortgage insurance (PMI), and other miscellaneous fees. The IRS, and most state governments allow you to deduct mortgage interest and property taxes when you file your income tax return. You may deduct the first million ($1,000,000) dollars of mortgage debt as well as all the property taxes. This deductibility covers debt on primary and secondary dwellings. You can also deduct interest on home equity loans (second mortgages) to a maximum of $100,000.

There are two main types of mortgages. Fixed rate mortgages have interest rates that never fluctuate. Adjustable rate mortgages (ARMs) change during the term of the loan.



Home \| Credit Tips \| Personal Loans \| Refinance & Mortgage \| Auto Loans \| Debt Consolidation \| Credit Cards
Mortgage FAQ A mortgage is a loan you take to finance the purchase of a home. These are generally paid in monthly installments over a 15-year or 30-year period of time. In the beginning, nearly all of your payments go to interest on the money you borrowed. It is toward the end of your term that you will start to see the principal balance decreasing.
	Some of the closing costs include loan orientation fees, escrow fees, home owners insurance, property taxes, attorney fees, property inspections, private mortgage insurance (PMI), and other miscellaneous fees. The IRS, and most state governments allow you to deduct mortgage interest and property taxes when you file your income tax return. You may deduct the first million ($1,000,000) dollars of mortgage debt as well as all the property taxes. This deductibility covers debt on primary and secondary dwellings. You can also deduct interest on home equity loans (second mortgages) to a maximum of $100,000. There are two main types of mortgages. Fixed rate mortgages have interest rates that never fluctuate. Adjustable rate mortgages (ARMs) change during the term of the loan.
The main sources of funding for mortgages include Convential loans (nearly 80% of all US residential mortgages) originated by lending institutions. Government loans (nearly 20% of all US home loans). Low income borrowers may be eligible for government assistance. Seller loans. These are loans funded by the seller. These account for less than 5% of all US mortgages, but are a very important loan source. If you have difficulty obtaining a conventional loan, don't forget about this option. How Much Can You Afford? According to a general rule of thumb, you can afford a house that costs two and a half times your annual salary. But determining how much you can afford to spend on a house is not quite so simple. Since most people finance their home purchases, buying a house usually means getting a mortgage. So, the amount you can afford to spend on a house is often tied to figuring out how large a mortgage you can afford. To figure this out, you'll need to take into account your gross monthly income, housing expenses, and any long-term debt. Try using one of the many real estate and personal finance websites to help you with the calculations Buying a Home - Other Tips Finding the right home to buy can be a challenging prospect, but knowing what to expect can make the process easier. You can (1) buy through agents representing the seller and/or use a buyer's broker, (2) buy directly from an owner, or (3) shop the auctions and foreclosure sales. Once you find the house you want, you must make an offer, check for clear title to the property, and arrange for a home inspection. And after the closing, you can finally move into your new home. Using an agent or buyer's broker - What a real estate agent can do Real estate agents, real estate brokers, and Realtors can guide you through the home-buying process and may be able to help with some or all of the following: Determining your housing needs Showing you properties and neighborhoods Suggesting sources and techniques for financing Acting as intermediary in negotiations Recommending professionals whose services you may need (e.g., an attorney, inspectors, appraisers) Providing insight regarding market activity in the area you're considering Disclosing positive and negative aspects of various properties that might otherwise have escaped your attention What to do once you find the right house Once you find the house you want, it's time to make an offer. Have your attorney review your offer to purchase before you submit it to the seller. If accepted, it becomes a binding agreement between you and the seller. It's important to make sure that everything you want included in the deal is contained in the initial contract, because once it is signed by all parties, it may be too late to add or change anything. Tip: In some states, the contract simply contains an accepted offer to purchase a particular property at a specified price. Once the purchase price has been accepted, other contract terms are negotiated in the purchase and sale agreement. Your offer may not be accepted. If the seller wants to negotiate, a counteroffer is made. If the counteroffer is not acceptable, you can allow it to expire or make another offer. Negotiation can go on for weeks, although an agreement is typically reached by the second or third try. When does the house actually become yours? The house becomes yours after the closing (also called settlement, title closing, or closing of escrow). The purpose of the closing is to transfer ownership of the property from the previous owner to you. At the closing, you will fill out the required paperwork, which is necessary to make the transfer of ownership official. Closing can be an arduous process, but once it's over, you'll be the proud new owner of a home! Copyright © 2004-2007. 1st-Personal-Loans. All Rights Reserved.