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Archive for August, 2008

Is the interest on 125 percent financing deductible?

Is the interest on 125 percent financing deductible?

This is a somewhat complex question. Interest on loans secured by real estate is generally deductible if the acquisition mortgage value is not more than $1 million. Interest is also deductible for home equity loans (second loans) up to $100,000. With 125 percent financing you have a loan that is worth more than the house […]

Posted in: Mortgages
Second Trusts And 125 Percent Loans

Second Trusts And 125 Percent Loans

Question: Can I get a second trust if I have 125 percent financing? Answer: No. The problem here is that all equity is already being used to secure the 125 percent financing. There is no equity available to secure additional debt. Technorati Tags: 125, mortgage, percent, second, trust

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Should we use 125 percent financing to pay off credit card debt?

Should we use 125 percent financing to pay off credit card debt?

If the idea is to finance a home and at the same time re-finance credit card debt at a lower rate then one could make the argument — at least as far as it goes — that this is a marginal financial strategy. However, a 125-percent mortgage (or any mortgage) does not limit the ability […]

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What are the pros and cons of 15-year mortgage loans?

What are the pros and cons of 15-year mortgage loans?

A 15-year mortgage will have a somewhat lower interest rate than a 30-year loan and WILL substantially reduce your overall interest cost. The catch is that monthly payments are higher, and not everyone can qualify for 15-year financing for that reason. The second catch is that high monthly payments can be a big problem if […]

Posted in: Mortgages
What is 3/2 mortgage loan financing?

What is 3/2 mortgage loan financing?

There are a number of loan programs directed toward first-time buyers that allow the purchase of property with as little as 3 percent down. The way they work is that a purchaser puts up 3 percent of the sale price and another party puts up 2 percent. Who puts up the additional 2 percent? Programs […]

Posted in: Mortgages
Can I borrow against my 401K program to get a down payment?

Can I borrow against my 401K program to get a down payment?

With many 401K programs — but not all — up to 50 percent of the account balance, but no more than $50,000, can be borrowed. Money borrowed must be repaid. If not repaid, there can be substantial tax consequences. For details regarding your right to borrow 401K money, speak with your retirement account manager BEFORE […]

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Unpaid 401K Loans

Unpaid 401K Loans

Question: What happens if I do not repay my 401k loan? Answer: Not re-paying a 401K loan raises two major problems. First, there is less money available for your retirement. This should be regarded as a serious matter. Second, while you can borrow against many 401K programs, if money is simply withdrawn there is typically […]

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What Are 403B Pensions?

What Are 403B Pensions?

The 403B program was established in 1958 for government workers, teachers, and employees who work with non-profit organizations. Traditionally, 403B plan beneficiaries are not allowed to borrow against such funds to purchase a home. Please check with plan administrators and managers to confirm and for the latest information. Technorati Tags: 403B, employees, government, pensions, teachers

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What’s A 5/25 ARM?

What’s A 5/25 ARM?

An ARM is a loan product with payments and interest rates that adjust at certain intervals. A fixed-rate loan has one interest rate and a set monthly payment for the life of the loan. A 5/25 ARM is a loan product with a fixed rate during its first five years, and then an adjustable rate […]

Posted in: Mortgages
Accessible Housing Features

Accessible Housing Features

Answer: Accessible homes come with one or more features, including ramps, wide hallways, low carpets, wide doors, lifts, sinks with clear access below, smoke alarms that flash lights, etc. Landlords generally have an obligation to make "reasonable accommodations" for those with special needs. For instance, allowing a tenant to install a ramp at the tenant’s […]

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