Thursday, September 3, 2015 / by Matt Chase
Last week’s blog focused on PMI, or private mortgage insurance. That is if you have less than 20 percent for a down payment in order to purchase a home. Today I will focus on the other different types of mortgage loans. Although about seventy percent of homes deal with traditional mortgage loans, it is important and beneficial to at least know about the other loans out there.
First, I will discuss traditional mortgage loans. As stated above, most mortgage loans fall into this category. The most popular is a fixed rate mortgage. The reason for the popularity is that this offers stability. The interest rate stays completely constant from the very start of the loan. It stays constant throughout the term of the mortgage. This is the most popular choice of home buyers. The other type of traditional mortgage includes the adjustable rate mortgage. The interest rate for the adjustable rate mortgage is tied to an index. This means that it fluctuates according to the changi ...
Thursday, August 27, 2015 / by Matt Chase
In last week’s blog, which can be read here, I discussed how to save for down payment. What happens if you don’t have enough money for a large down payment but find a great home buying opportunity? This is where Private Mortgage Insurance, or PMI, comes in.
Essentially if your down payment is less than twenty percent, you will be paying for private mortgage insurance. But what is private mortgage insurance? Basically, PMI reimburses the lender if you default on your home loan. Being the borrower, you pay the premium for this service. The amount you pay is typically based on the size of your down payment, and your credit score. This is typically around 0.3 percent to 1.5 percent of the original loan amount per year. Most policies require the borrower to pay monthly.
Your lender must automatically cancel the private mortgage insurance when the outstanding loan balance drops to 78 percent of the homes original value. If you’re feeling extra diligent you can s ...
Thursday, August 20, 2015 / by Matt Chase
When looking to buy a home one should have a significant amount saved towards the down payment of this large purchase. Generally, experts suggest having at least twenty percent saved towards the total amount of the home as your down payment. Today I will be discussing some simple ways and tips for saving toward a down payment.
One suggestion is to go where rent is cheaper. If you can move to a smaller apartment, or rent in a different area, this could potentially save you a few hundred dollars a month. Consider going to a place where your rent is less than what it is now. Put that extra money you are saving directly into a savings account geared toward saving for a down payment. Some people may be lucky enough to be in the position to move in with family or friends for a cheap price, or even for free. If you can, take advantage of this opportunity to save toward your own place.
Something that might be overlooked when trying to save is to consider less house. Do you really n ...
Thursday, August 13, 2015 / by Matt Chase
Getting everything ready or back to school time can be chaotic, stressful and disorganized. By designating simple changes and providing some areas for homework and school items, this can greatly cut down on the stress. Today, I will discuss some helpful tips to keep everything organized and in turn help keep your home clean and functional.
As a parent, schools seem to provide an endless supply of papers sent home with the kids. Designate a section in a filing cabinet with each child’s name on the file. Sort papers into one file that needs immediate attention, such as due dates or permission slips for field trips that need to be signed and returned. Have another section of the folder for keepsakes, such as special notes or art projects. Once you have these organized it is important that you have a calendar. Either use a reusable dry erase calendar or a planner of some kind that you view every day. Take all the dates from the important papers and put them on the calendar so y ...
Thursday, August 6, 2015 / by Matt Chase
Moving is an essential and unavoidable process when it comes to buying and selling a home. The average person moves about 12 times in their life. There are a variety of ways to make the next move less painful, including hiring help and purging items before the move.
When it comes to moving, some people prefer to hire a moving company. This is a great service when done correctly. Use a reputable company, or use moving.org to help you make an informed decision based on your moving needs. Be sure to make copies of all forms, especially the bill of lading you’ll get on the day of your move. The bill of lading is your receipt and contract. Also keep track of how much you owe, and the date of your belongings to arrive. Don’t wait until the last minute to schedule the move too. Your rates could be astronomical because of this. Also, select the insurance plan with the movers. They typically offer two, but the more expensive one will give you the most coverage, whereas the les ...