All Posts Tagged With: "down"
Why Do We Need Private Mortgage Insurance?
Question: We’re buying with 10 percent down. Our lender says we can get a loan but only with private mortgage insurance. What is private mortgage insurance and why do I need it. Answer: Lenders want as little risk as possible when they make a loan — a not-unreasonable position. To limit their risk they want [...]
2Sep2008 | Peter G. Miller | 0 comments | Continued
How Does A “Buy-Down” Reduce Mortgage Interest Costs?
With a “buy-down” you have a below-market interest rate (it is “bought down”) because either the borrower or the seller have given additional money to the lender up front. There are different forms of buy downs, most reduce interest costs in the first few years of the loan. For instance, if you pay an extra [...]
1Sep2008 | Peter G. Miller | 0 comments | Continued
How Can I Buy Real Estate With Little Or Nothing Down?
Figures from the National Association of Realtor’s 2010 study of buyers and sellers shows that typical first-time buyers bought with 4 percent down while repeat purchasers paid 14 percent down. The repeat buyers presumably could put more down because they had equity from the sale of house #1 and they were older and had more [...]
1Sep2008 | Peter G. Miller | 0 comments | Continued
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 [...]
31Aug2008 | Peter G. Miller | 0 comments | Continued
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 [...]
31Aug2008 | Peter G. Miller | 0 comments | Continued
Should We Pay Someone To Buy Our Home In A Down Market?
Answer: No. Your problems will just get worse. In areas of the country where prices have declined, homeowners are sometimes offered the “opportunity” to “sell” their homes to an individual or company for a price equal to the mortgage balance. Sellers are expected to pay the buyer perhaps one percent of the mortgage amount. The [...]
30Aug2008 | Peter G. Miller | 0 comments | Continued
Are Big Or Small Down Payments Better?
The real question is whether it’s better to put money into a home or elsewhere. Without knowing the rate of return for “elsewhere” and the level of risk and tax consequences when compared with putting money into your own home, any answer is speculation. As a practical matter, most first-time buyers have little choice — [...]
30Aug2008 | Peter G. Miller | 0 comments | Continued
Can I raise a mortgage down payment borrowing from credit cards?
Let us say you borrow $10,000 from a credit card, or jointly from several credit cards. You now have a debt item which must be reported to lenders. The debt requires monthly payments, and those monthly payments will reduce your ability to qualify for a mortgage. No less important, credit card interest is vastly higher [...]
30Aug2008 | Peter G. Miller | 0 comments | Continued
What’s A Mortgage “Buy-Down?”
When you borrow money, there’s a cost for its use. Usually, the cost to borrow money is paid-out over time in the form of interest, say $100,000 at 8 percent. But, you might also pay 7.75 percent. This can be done with a “buy-down.” Rather than paying 8 percent over the life of the loan, [...]
29Aug2008 | Peter G. Miller | 0 comments | Continued
What’s The FHA Down Payment Schedule?
The FHA down payment requirement will increase to 3.5 percent as of October 1, 2008, up from 3 percent. As explained in the 2008 FHA mortgage reform legislation, “a mortgage insured under this section shall be executed by a mortgagor who shall have paid, in cash or its equivalent, on account of the property an [...]
28Aug2008 | Peter G. Miller | 0 comments | Continued
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