There are certain financial and psychological benefits of repaying your mortgage loan early. If you are indeed interested to pay off your mortgage early, there are some smart and safe ways to do so. Here we briefly discuss some of them.
Pay more than the minimum
In the mortgage loan business there is person who plays a key role in the mortgage approval of a borrower. This important person, who is known as a mortgage underwriter, is appointed by the mortgage lender, and that person can not be seen or interacted by the borrower. Usually, a lender does not approve a loan to a borrower without the consent of the underwriter. In fact, an underwriter is responsible for assessing the risks associated with a real estate loan. An underwriter judges the creditworthiness of a mortgage applicant.
There are many of us who have moved out of a property and have started staying in another one. Thus, your previous homes are presently vacant and now you want to sell off that vacant property. Though it is not very easy to sell off a vacant home, here are certain tips which will help you in selling off the property. Selling a vacant home is a challenge as such properties need to be insured, maintained, staged as well as secured against unlawful residents and hooligans.
Owning a home is a long cherished desire of many of you. Right home purchase depends upon the careful selection of a mortgage lender. Here we briefly discuss about some tips which will help you find out a credible mortgage lender.
Seek for references
There are some closing costs associated with a home mortgage loan. Closing costs are the costs that borrowers have to bear at the time of the closing of the mortgage loans. Closing costs can be in the form of loan origination fees, discount points and appraisal fees. Loan origination fees are the costs that arise while making the mortgage loan. Loan origination fee is also known as origination point. Again, discount points are prepaid interest demanded by lenders in return of lower interest rate charged on the loan amount.
The worst outcome of a loan default is foreclosure. This is a legal process which implies that your lender can take over your home. In that case, you have to leave your home. Again, in case the value of your home is less than the amount you owe, a deficiency judgment is pursued. In case of a deficiency judgment, you not only have to lose your home but also have to owe an additional amount to the HUD.
Till date mortgage interest deductions were applicable for second homes as well as vacation properties. However, in a recent update, it was noted that many industry experts want the mortgage interest deductions for vacation properties and other non-primary residences should get eliminated.
What does the provision provide for?
Mortgage tax deductions allow the tax payers to deduct their mortgage interest payments on their second homes while they are filing their taxes.
Purchasing a house is indeed a very big decision. Various legal, emotional and of course financial considerations are involved in house purchase. Before making the purchase, you need to educate yourself and importantly you need to learn from the mistakes committed by others. Here we discuss about some common mistakes that you commit while purchasing the home.
Do not make hasty decision
It has been estimated that there are more than 11 million homeowners who are delinquent in their mortgage payments. In such a situation, there are a large number of people who are facing foreclosure. The option of short sale is available to such delinquent borrowers. However, for the last few years, lenders were taking quite some time to approve as well as complete the short sale process.
While offering you a home mortgage loan, a mortgage lender takes into consideration various things, such as your credit history, income, down payment amount etc. All these things are very important in determining your eligibility to obtain the home mortgage loan. Sometimes, the down payment amount creates a big problem to homeownership for many home buyers. The problem of making big down payment gets compounded especially for the first time home buyers and for the borrowers in low income brackets.
