- Using Your 401(k) to Pay Off Your Mortgage
The government offers several incentives for retirement accounts like 401(k)s. For instance, they’re a tax-deferred investment, meaning you won’t pay taxes on them until you withdraw. 401(k) deposits also don’t count as taxable income during the year that you make them,… read more…
- Reverse Mortgage vs. HELOC vs. Home Equity Loan
In basic terms, home equity is the percentage of your home’s overall value that you personally own. So if you owe money on a mortgage, that part isn’t included in your equity. There are multiple ways to tap into home… read more…
- Best Alternatives to a Reverse Mortgage
A reverse mortgage can provide you with a steady stream of income in retirement. Reverse mortgages do have risks and they can affect your ability to pass on assets to your heirs later. Fortunately, there’s more than one alternative to… read more…
- How to Use a HELOC for a Down Payment
A homeowner who has equity in a primary residence may be able to use a home equity line of credit (HELOC) to make the down payment on a second home. The amount of equity limits the amount of money a… read more…
- Is a House an Investment?
It can be a complicated decision to determine if you should rent or buy a home. And if you’re leaning toward buying, high housing prices and high mortgage rates are likely making that decision even more difficult. Current economic conditions… read more…
- What Is the 28/36 Rule in Mortgages?
The 28/36 rule is a rule of thumb for managing your finances and a valuable tool in determining how much house you can afford. The rule says that you should dedicate no more than 28% of your pretax, or gross,… read more…
- Loan Modification vs. Refinance
A low interest rate environment coupled with the effects of the volatile rate environment in recent years has caused Americans who own homes to consider changing the terms of their mortgages. Their existing loans may have carried higher interest rates,… read more…
- Should I Pay Off My Mortgage Early?
Whether you experience a sudden financial windfall or just find yourself with leftover cash in your budget each month, you might be wondering what to do with those extra funds. One option is to contribute more money toward the loan… read more…
- What to Know About Divorce and Your Mortgage
Getting divorced means determining who’s entitled to assets from the marriage, which for many couples includes a home. You’ll need to decide who gets the home, which can also mean determining who’s responsible for the mortgage. There are different options… read more…
- Reverse Mortgage Scams to Watch Out For
A reverse mortgage can provide older homeowners with an additional stream of income in retirement. Reverse mortgages allow eligible homeowners to tap into their equity, without taking a traditional home equity loan. But are reverse mortgages a scam? No, but… read more…
- Pros and Cons of Buying a House After Age 60
While you might not immediately associate retirement with homeownership, buying a home after age 60 can be thrilling and financially savvy. Instead of looking for highly rated school districts, you can find the ideal combination of comfort, affordability and proximity… read more…
- 9 Best Books for Beginner Real Estate Investors
The saying “knowledge is power” is especially true when it comes to investing in real estate. The world of real estate has its own risks and it pays to be educated before stepping in. Taking the initiative and teaching yourself… read more…
- BRRRR Method: Buy, Rehab, Rent, Refinance, Repeat
The BRRRR Method aims to help real estate investors grow their portfolio with just one property. BRRRR stands for Buy, Rehab, Rent, Refinance, Repeat. It can be an effective investment strategy, if you have the expertise. But BRRRR isn’t for… read more…
- How the No-Closing-Cost Refinance Works
When you buy a home or refinance your mortgage, closing costs can run thousands of dollars. However, there is a way to eliminate the out-of-pocket cost when getting a new mortgage. With a no-closing-cost refinance, your interest rate increases by… read more…
- Fixed vs. Adjustable Rate Mortgages
Buying a home is one of the most important purchases a person makes in their lifetime. And therefore, it’s paramount that the mortgage one attains is the right type of loan for their financial needs. When deciding on a mortgage… read more…
- What Is a Co-Op and How Does It Work?
A co-op, or cooperative, is a housing arrangement in which residents of a building with multiple apartment-style units own the building jointly. Residents don’t actually own the specific individual unit where each resides but, instead, they own shares in a… read more…
- Despite High Rates, Advisors Say Now May Be a Great Time to Buy a Home
The conventional wisdom suggests that now is a terrible time to buy a home. In September, the average rate for new 30-year mortgages hit 6.29% according to the St. Louis Federal Reserve, almost triple their 2021 low of 2.65%. At… read more…
- What Are Closing Costs and How Much Are They?
Closing costs accompany mortgage loans and cover the last-minute expenses and fees to close a loan. These costs can be significant – totaling as much as 2% to 5% of the loan amount. Here’s a break down of how these costs… read more…
- Pros and Cons of Adjustable-Rate Mortgages
With inflation continuing to affect interest rates, homeowners looking for financial relief may turn to their mortgages to help their overall budget. Adjustable-rate mortgages can bring interest rates down to affordable levels for borrowers, making homeownership possible during financially challenging… read more…
- What Is a 7/1 Adjustable Rate Mortgage (ARM)?
Fixed-rate mortgages finance the majority of homes across the country, allowing homeowners to make unchanging monthly payments until they repay the loan. However, fixed-rate mortgages can have expensive interest rates. While adjustable-rate mortgages (ARM) can have volatile interest rates, hybrid… read more…
- What Is a 5/1 Adjustable Rate Mortgage (ARM)?
Loan products such as 5/1 adjustable rate mortgages give borrowers reduced interest rates for five years, giving homeowners some much-needed breathing room. This can help, especially as mortgage rates have been on the rise. During the loan’s first five years,… read more…
- What Is Earnest Money?
Today’s red-hot housing market is challenging for many buyers to navigate. Rising interest rates, bidding wars and low housing supply can make purchasing a home more strenuous than usual. However, one way that buyers can stand out is with a sizable… read more…
- What Is a Kick-Out Clause and How Does It Work?
A kick-out clause is a clause written in real estate contracts, usually in the context of home sales. It applies when someone has made a contingent offer to buy the house. The kick-out clause says that the seller can continue… read more…
- Where Is the Housing Market Headed?
The housing market can be something of a rollercoaster for buyers who are hoping to find great deals while battling rising interest rates and steep competition for properties. Home prices have been on a steady incline, with prices up 10.9%… read more…
- How Do You Pay Back a Reverse Mortgage?
A reverse mortgage is typically paid back either when you sell the home or when the homeowner passes away. They are a relatively common way for older homeowners to supplement their retirement accounts, but they can also be a drain on your assets if you’re not careful. Here’s how they work. A financial advisor can help… read more…