Owning a home may be the American Dream, but this dream does not come cheap. Between your mortgage payments, your insurance premiums, and all of your recurring bills, managing your bills and maintaining your home can get expensive if you do not know how to balance everything.
If you are in the market for a home, your mortgage options go beyond the traditional 30-year mortgage. Fixed rate, variable interest rate and balloon mortgages are available today, with each one offering advantages and disadvantages that consumers should be aware of.
Maybe you dodged a bullet with the latest natural disaster. Or, perhaps, you had to file a claim and are still handling repairs.
Homeowners enticed by historically low interest rates are considering refinancing their homes. This may be an option for you as well, especially if you took out a mortgage several years ago and are paying an interest rate that is at least one point higher than your current rate.
A home equity line of credit or HELOC is a popular borrowing option for homeowners, but is handled differently than a home equity loan or HEL. With a HEL, you receive your money up front.
With mortgage rates still flirting with historic lows, refinancing now can help you avoid higher rates later on when inflation inevitably becomes a factor. Interest rates have been held artificially low thanks to fed action, but few analysts believe that they’ll stay this low for years, perhaps for just months to come.
The U.S. housing market is certainly not stellar, but it apparently has put its very worst years behind it. The S&P/Case-Shiller home index rose by 2.2 percent in May, with all 20 of the nation’s largest metropolitan areas posting average housing price gains over April.
CNBC real estate reporter Diana Olick had it right when she stated that the current refinancing trends “defies logic.”
The word “derecho” may not be part of most people’s vocabulary, but it is a word you heard often over the past week. It is a Spanish word that is pronounced “day-ret-cho” and means right or straight, the type of winds that pummeled states from Ohio to Virginia.
So you’ve just renovated your house or flat, made it into a home of which you can be proud and increased its market value. What could possibly go wrong?
Forget the costly home improvement project: you still have one or more children to put through college, an expense that will drain you of your available capital. A desired home renovation project can wait, with those plans perhaps shelved until after your youngest graduates from college.
Say “adjustable rate mortgage” to many consumers and you’ll hear a variety or responses, with not a few being quite negative. That’s because ARMs are associated with sub-prime lending, which was quite common and have been routinely blamed for our current mortgage crisis.
Consumers are being warned that the recent news stories about several fresh initiatives to help beleaguered homeowners handle their mortgages may trigger a fresh onslaught of scams.
Not all homeowners will renovate their homes, with some people choosing to upgrade to a new home instead of undertaking a time-consuming and costly renovation. With home prices down nearly across the board, buying a home now can be a sensible alternative to renovating your current residence.