According to a report released by the Federal Reserve, Americans have topped a milestone that had not been touched since 2008. They have surpassed 1 trillion dollars in revolving debt. This is usually associated with credit cards. Senior industry analyst, Matt Schulz, was quoted as saying, “This record should serve as a wake-up call to Americans to focus on the credit card debt.” According to creditcards.com, the average rate on these credit cards is 15.57%.
Let’s start with what we know as much of this is still being ironed out. Three days before Christmas President Donald Trump, in many people’s eyes, decided to play scrooge. He signed the Tax Cuts and Jobs act into Law.
What is an adjustable-rate mortgage?
An Adjustable- Rate Mortgage (ARM) is a mortgage where the rate can adjust according to market fluctuation and the terms of the loan. You will have a low start rate which most lenders call the introductory or promotional rate. This rate will be fixed for a set amount of time such as 3 years, 5 years, 7 years or 10 years. After the fixed period, or promotion period, the rate will adjust. Most of these rates adjust according to the current margin selected at the time of when the loan documents are drawn and added to the current Index which can be located in the wall street journal.
This is not a new question but it is a question with an ever changing answer. The question is: which is better for you as a homebuyer? Eighty-five percent of home buyers choose the 30-year fixed loan. It is commonly thought of as a way to maximize your buying potential. Your mortgage payment including Principal, Interest, Taxes, and Insurance, as a rule of thumb, should be no more than twenty-eight percent of your gross income. For example, if you make $10,000 per month you can afford a mortgage of $2,800.
If you are thinking of buying a home, take note: The cost of homeownership is more than just the down payment and the monthly mortgage payment. Buying your first home is a big investment and comes with a new set of expenses that you must consider in your budget. The expenses may not have been considered when you were living with your parents or just renting an apartment. These particular four new added expenses can put a strain on your monthly budget so you always want to make sure you account for them.
When purchasing a home, you probably never thought of buying title insurance. When you purchase a car you purchased auto insurance, and probably understood the benefits of auto insurance. But what exactly is title insurance? Well it is a policy that is provided by a title company that insures that you will not have any unknown claims made to the ownership of your new home.
Mortgage insurance is a form of insurance purchased that lowers the risk to the lender making the loan to you when you purchase a home. It is typically applied to conventional home loans when you put less than 20% down payment when buying your home. The mortgage insurance is included in your payment that you make to the lender each month.
Buying a home is a scary process. You do a quick walk through and decide that you love the home and want to buy it. During that initial 5-10 minute walk through did you have time to look at the plumbing, what about the garbage disposal under the kitchen sink? Did you notice the 2 windows on the 2nd floor in the 3rd bedroom do not open? Of course not. This is why you should always get a home inspection when purchasing a resale home.
Tags: Home Inspection
You have now found your dream home and are ready to start the full loan process. Chances are you have been pre approved through Lineage Lending and are ready to get your loan closed so you can move into your new house.