Don't have enough money to buy your first home? Or want to build equity quickly? One option for entering the housing market is to “house hack” and buy a multi-unit home to rent out to tenants and charge them enough to cover the mortgage, or close to it.
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According to the latest research from CoreLogic, homeowners across the United States gained plenty of home equity last year. That’s good news for homeowners, who can tap their equity for everything from paying down credit card bills to covering at least part of their children’s college education.
The thing about being a first-time homebuyer is you only get to do it one time. Buying your first home happens just once, giving you the chance to take advantage of lending programs meant to help people buy their first home with low down payments and low credit scores, such as an FHA loan.
Your real estate agent is supposed to represent your best interests, right? If you’re selling a home, your agent’s job is to earn you the highest sales price. If you’re buying, your agent’s priority should be to get you into your new home for the lowest price.
Think you know how many dollars you'll be sending to your mortgage lender each month? You might not. That's because your monthly mortgage payment is more complicated than you might think. You wouldn’t be the first new homeowner to not understand that a monthly mortgage payment isn't just made up of the money you pay to reduce your loan's principal balance and cover the interest it generates.
It’s a type of insurance no one likes to pay: private mortgage insurance, an insurance that protects mortgage lenders if you eventually default on your mortgage loan. Depending on the size of your mortgage, private mortgage insurance, better known as PMI, can add $100 or more to your monthly mortgage payment if you don’t first come up with a down payment of 20 percent of your home’s purchase price.
Being preapproved for a home loan by a lender is a good way to show a home seller that you’re serious and are financially qualified to make a fast close on the contract. It can help seal the deal and convince the seller to accept the bid.
You’re ready to apply for a mortgage loan. When your mortgage lender checks your credit reports will this hurt your three-digit FICO credit score?
The days of interest rates hovering near 3 percent for fixed-rate mortgages seem to have disappeared, with the Freddie Mac Primary Mortgage Market Survey reporting that the average rate on a 30-year fixed-rate loan stood at 4.45 percent as of Jan. 10. This doesn't mean, though, that there aren’t any reasons to refinance your existing mortgage loan in 2019.
Whether you’re looking to buy a home or refinance a home loan in 2019, forecasting where the housing market will go in the new year can be difficult. When is the best time to buy? Should you stay in your current home and refinance to a lower rate?