5 Sins Made by Mortgage Consumers

Consumers are simply leaving thousands of dollars on the table by not shopping for a mortgage effectively.  Such negligence was reported in November 2012 by Fannie Mae in a recent study on the topic of Mortgage Shopping.   The research shows those that make efforts to get multiple quotes and use available tools have the advantage. Once you have analyzed all the information you’ve gathered, you can feel confident that you are making the best decision and getting the best rate you possibly can for such an important purchase.

1. Grabbing the First Thing You See

Savvy buyers when it comes to mortgages save thousands of dollars. They tell you not to rent the first apartment you look at, and there are many mortgage companies to consider. Don’t be afraid to shop around and get multiple quotes so you can make an informed and educated decision.

Bacon Shortens Your Mortgage Term

Bacon Shortens Mortgage Term

Applying extra dollars or “bacon” toward mortgage payments is an economical method to rid of one’s mortgage early.  When closing on a home loan, most mortgage borrowers go into shock when they discover the total amount they will be paying to finance their home.  There are several ways to shorten the mortgage term to save thousands.

Bi-Weekly Payments

Borrowers can use simply make use of the 52 weeks in a year to add an extra payment to the principal.  A Bi-Weekly program has 26 opportunities to make payments to the bank using what adds up to a payment annually.  The extra “bacon” applied annually as a payment will reduce a mortgage term by a little over six (6) years.

Homeowners can inquire with their lender about a bi-weekly payment program to save on their payments over the long run.  The Bi-Weekly program is excellent for borrowers who want an easy to manage payment option.

The Billion Dollar Hero | homeownersinsurance.com

Created by HomeownersInsurance.com

See on Scoop.it – Mortgage Knowledge and Technology

Jeff Chin‘s insight:

Home insurance is mandatory for homeowners and property investors.  Combine an essential product with some creativity and imagination, you get a very entertaining perspective on a product required to go along with your 30 year fixed mortgage or 5/1 adjustable rate mortgage.

See on homeownersinsurance.com

Six Reasons Housing Inventory Keeps Declining

See on Scoop.it – Mortgage Knowledge and Technology

Home sales in December dropped by 1% from November, the National Association of Realtors reported on Tuesday, but still stood nearly 13% above the levels of one year ago.

Jeff Chin‘s insight:

A clear signal that the market is on the upswing.  Homebuyers should get ready for a more frantic buying market.  Connecting with a lender to review mortgage options will take some of the stress out of home buying.  Mortgage shopping early for a 30 year fixed mortgage or a 5/1 adjustable rate mortgage can be done early.

See on blogs.wsj.com

Millennials Expected to Dominate Housing Market by 2020

See on Scoop.it – Real Estate Research

Though the housing market has made significant strides over the last year or so, many experts believe it will continue to improve in the short term. However, new data also shows that it could continue to do so decades into the future as well.

Jeff Chin‘s insight:

Housing purchases are forecasted to pick up in 2013.  Homebuyers need to star looking to prequalify themselves with lenders to shop for a suitable mortgage product.  Lenders will advice on a 30 year fixed rate mortgage, 15 year fixed rate mortgage or 5/1 adjustable rate mortgage.

See on blog.credit.com

 

Low Interest Rate Mortgage Refinance Loan – Benefits of a No Obligation Refi Quote

Many websites offer free online quotes. The key advantage is time savings in getting quotes to shop for your needs, whether for a home purchase or a refinance. Most sites will have fixed rate mortgages, adjustable rate mortgage, jumbo, VA and FHA programs.

Your Top Home Ownership Tax Questions Answered

The effect on a home owners taxes can be confusing. Having a licensed CPA help with some common questions is very helpful.

 

homestobetsy

Article From HouseLogic.com
By: Natasha Padgitt
Published: December 31, 2012
Which tax benefits do home owners miss? Will you get audited if you take the home office deduction? Find out the answers to these questions and more before Tax Day.
There are a lot of home ownership tax benefits (http://www.houselogic.com/home-taxes-financing/taxes-incentives/) – if you don’t forget to take them. To make sure you get your due, HouseLogic asked tax expert Abe Schneier, a senior technical manager with the American Institute of CPAs (http://www.aicpa.org), for tax-filing tips.
HouseLogic: What’s the most common home-related tax deduction or credit claimed by home owners?
Abe Schneier: The mortgage interest deduction, [which the NATIONAL ASSOCIATION OF REALTORS® estimates amounts to about $3,000 in tax savings for the average itemizing home owner] and [the deduction for] real property taxes (http://www.houselogic.com/home-advice/property-taxes/property-tax-appeal/).
HL: Which tax provision do home owners often overlook?
AS: You can deduct mortgage insurance premiums (http://www.houselogic.com/home-advice/tax-deductions/deducting-private-mortgage-insurance/)…

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The Facebook mortgage. Could social data be used for credit scores?

See on Scoop.it – Mortgage Knowledge and Technology

I’m about to move house. Which, as is usual, has involved a painful bank transfer and a lot of paperwork.

Jeff Chin‘s insight:

Credit scores are used by lenders, creditors, and yes, employers to help them on making decisions on you. Your social data is available for review.  Folding such information into a personal credit could the next big thing.

See on econsultancy.com