Mortgage Archives – Page 69 of 231

10

Jan

Mortgage

The Most Commonly Forgotten Item On The Home Budget List

The Most Commonly Forgotten Item On The Home Budget List If you are in the process of purchasing a home, it is critical for you to make sure that you budget appropriately. Unfortunately, there are a lot of people who commonly overlook closing expenses. Even though it is important for you to have enough money for your down payment, you need to make sure you cover closing costs as well. What is included in closing costs, and how much money do you need to budget?

The Recommended Amount

Even though it is tempting to focus on the cost of your house, it is also critical to think about closing expenses. Usually, closing expenses are approximately two percent of the value of your home. For example, if you are planning on purchasing a house for $250,000, your closing expenses will probably be about $5,000; however, there is also a chance that your closing costs could be more or less than that. You should work with a professional who can help you estimate your closing expenses.

Examples Of Items Included In Closing Costs

As you go through the process of buying your house, there are a lot of moving parts that have to come together to complete the transaction. There are several examples of items that could be included in your closing expenses. For example, you may have to pay an origination fee attached to your loan, and you will have to cover attorney’s fees for the closing attorney as well. You will need to purchase title insurance and conduct a title search, and you might also have to pay for the home inspection and home appraisal. If there is an HOA in the area in which you are buying your house, you may have to pay those when you close on your house as well. You should get a breakdown of these expenses ahead of time.

Ensure You Have Money For Closing Costs

You have worked hard to find the perfect house. You must make sure you have enough money to cover not only the down payment but also your closing expenses. If you have questions about how much money you will have to pay for closing costs, reach out to a professional who can help you.

06

Jan

By First Rate Financial Group

Mortgage

Pet Safety Checklist

Many people view their furry friends as members of the family. If you have pets at home, you need to make sure they are well taken care of. That means taking a closer look at an important pet safety checklist. What are a few of the most important items you need to include on this checklist if you want to make sure your dogs and cats are safe?

Regular Checkups Are Critical

First, you need to make sure that you take your pets to the veterinarian at least once per year. Just as you go to the doctor once per year, your pets need to go to the doctor once per year as well. Regular check-ups are important because the veterinarian could identify issues that you might not otherwise have noticed. In addition, this gives a veterinarian an opportunity to make sure your pets’ vaccinations are up-to-date.

Spay Or Neuter Your Pets

Unless you plan on having kittens or puppies, you also need to make sure that your dogs and cats are spayed and neutered. There are already far too many animals in animal shelters, so if you are not planning on breeding dogs and cats, you do not want to add to the population unnecessarily. There might be opportunities for you to get this operation financed, which could make it more affordable.

Lock Up Unsafe Items

Keep an eye on your home environment as well. Keep a close eye on how much human food you give your dog or cat. There are certain items that are simply not healthy for dogs and cats, and some items could be poisonous. You should also make sure that any cleaning supplies are locked behind a cabinet door. That way, your pets do not ingest anything that could poison them.

Protect Your Furry Friends

These are a few critical steps that you need to take to make sure your dogs and cats are safe. If you are interested in learning more about the steps you can take to protect your furry friends, consider reaching out to a veterinarian who can help you.

05

Jan

By First Rate Financial Group

Mortgage

Owning vs Renting: Why High Rents Are Worse Than a Mortgage over the Long Term

Owning vs Renting: Why High Rents Are Worse Than a Mortgage over the Long Term If you’re at the stage in life where home ownership is nearly within your reach, you’re probably wondering whether you should start looking for a home or whether you should just keep renting. Renting is easier, people say, and it gives you more mobility. But over the long term, all that rent money can really add up – and it eventually reaches a point where buying a home is a better deal.

So why is paying a high rent a worse option than buying a house and getting a mortgage? Here’s what you need to know.

Renting Doesn’t Generate Equity

One of the single biggest sources of wealth in the United States is home equity – as you pay down your mortgage, you invest more and more of your money into your property, and it appreciates in value. When you eventually sell that home, you make a profit. The monthly payment is something you’d have to make anyway, whether you rent or own – but when you rent, your monthly rent money lines someone else’s pockets, while when you own, paying down your mortgage actually creates wealth for you.

Renting Doesn’t Give You Access To Homeowner Tax Credits And Deductions

There are all sorts of tax benefits available to homeowners that renters simply can’t access. As a homeowner, you can deduct your mortgage interest from your taxes owing, reducing your taxable income – but there’s no such deduction for renters. You can also deduct property taxes and some closing costs when you buy a home – there are no corresponding tax benefits for renters.

There are also several tax credits available to homeowners that aren’t available to renters. Things like renovations or simply buying a home for the first time can give you tax benefits that renters can’t access.

If You Can Muster Up A Down Payment, Owning Is Cheaper In The Long Run

One of the biggest hurdles keeping young people out of the real estate market is the down payment. It’s not easy, but if you can save up enough money for a down payment, you’re actually better off buying a home than continuing to rent.

According to Trulia, the median home price in metro Houston in Texas is just under $163,000, while the median monthly rent for an apartment is $1,550. That means renting would cost $18,600 per year, while buying a home (assuming a 20% down payment and 30-year term) would cost $9,384 per year in mortgage payments. In other words, owning is about half as expensive as renting in the long run.

Renting may be a good short-term solution, but over the long haul, owning is almost always better. Call a local mortgage professional to learn more.