All Posts Tagged With: "points"
What’s a Hard Money Mortgage?
When we think of mortgages we usually think of long-term financing insured by the FHA, VA or with private mortgage insurance. If we have enough cash for a down payment of at least 20 percent then we don’t need mortgage insurance and can just get a conventional loan.
However, there are situations where owners run [...]
Google Mortgage Ads — Do They Reduce Borrower Costs?
Several months ago Google began offering a new service for advertisers, an ability to post comparison ads. You can see this today with mortgages — just go to:
Conventional Mortgages
FHA Mortgages
Jumbo Mortgages
VA Mortgages
Go to any of these links and you’ll see that Google generates a search for the type of mortgage you want and that at [...]
A Basic Guide To Real Estate, Mortgages & Taxes
Let’s be honest: April 15th is a day of reckoning, the moment when we find out what we really owe for taxes. In households nationwide wallets are drained and many who were rich on the 14th are greatly impoverished by the 16th.
But for those with real estate the load is made lighter by tax rules [...]
Interest Rates Rise Suddenly, Say Mortgage Bankers
The Mortgage Bankers association is reporting that mortgage rates moved up sharply during the past week.
___ “The average contract interest rate for 30-year fixed-rate mortgages increased to 5.25 percent from 4.81 percent, with points decreasing to 1.02 from 1.28 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. The 44 basis point increase [...]
2009 Real Estate, Mortgages & Taxes
Let’s be honest: April 15th is a day of reckoning, the moment when we find out what we really owe for taxes. In households nationwide wallets are drained and many who were rich on the 14th are greatly impoverished by the 16th.
But for those with real estate the load is made lighter by tax rules [...]
What’s The “APR?”
The Annual Percentage Rate (APR) represents most — but not all — of the costs that will be charged over the projected life of a loan, costs such as interest and points.
One catch is that loans do not normally last as long as projected.
As an example, when points are paid, they are undervalued if APR [...]
What’s a “bridge” loan?
A “bridge loan” is financing secured by your current home, a home typically listed for sale. The bridge loan is used to finance the purchase of the second home and is paid off when the first home sells.
In addition to other questions, when considering a bridge loan seller/borrowers should ask about interest costs, up-front fees [...]
Mortgage Points And Tax Deductions
Points — or loan discount fees — are deductible in the year paid for financing used to acquire a personal residence.
Points paid to refinance a home must be paid out over the loan term. Example: if you refinance, get a 15-year, $100,000 loan and pay a point, $1,000, at closing, then you would deduct 1/15th [...]
Can I Deduct Seller-Paid Mortgage Points?
If a seller pays points, the points are deductible in the year paid as an expense of selling.
If a buyer pays points, the points paid by the purchaser are deductible by the buyer in the year paid.
If a seller pays points to assist the purchaser, the BUYER may deduct the value of the points paid [...]
How many points must one pay to reduce an interest rate 1 percentage point?
It’s generally agreed that one point paid at closing is equal to 1/8th of a percent in interest over the life of a 30-year mortgage. To obtain a one percent interest rate reduction some would thus argue — incorrectly — that a borrower must pay 8 points up front.
Why is this argument incorrect? Because [...]
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