A homeowners insurance policy is a package policy that combines more than one type of insurance coverage in a single policy. There are four types of coverage that are contained in the homeowners policy: dwelling and personal property, personal liability, medical payments, and additional living expenses. Homeowner’s insurance, as the name suggests, protects you from damage […]
Tools & Resources
Bloomberg News Article Review: Mortgage Rates
How important is the mortgage rate in your decision to buy a home? In a recent article by Bloomberg News (https://www.bloomberg.com/news/2013-11-05/bernanke-giving-homebuyers-second-chance-with-pledge-mortgages.html) Katleen Howley brought up a point of view I found troublesome. The article spoke about the fluctuations of home mortgage rates. It cited a potential homebuyer who decided not to buy due to a […]
How to Reduce Your Mortgage
One Additional Mortgage Payment a Year There’s a simple trick to significantly reduce the length of your mortgage and save you thousands of dollars. The trick is to make one extra mortgage payment a year and apply that payment toward your loan’s principal. This is the method being used by “Bi-Weekly Mortgage Reduction Services” and “Bi-Weekly […]
Bi-Weekly Mortgages
If you search for “bi-weekly mortgages” with an Internet search engine, you will be overwhelmed by the number of companies offering “Bi-weekly Mortgage Reduction Services” or “Bi-weekly Savings Programs.” Beware, you are entering dangerous waters. Beware of Bi-Weekly Mortgage Reduction Services and Savings Programs These “Reduction Services” and “Savings Programs” are charging you fees […]
First Time Home Buyer Guide: Why You Should Get an Inspection
Whether you are buying or selling a home, you should have a professional home inspection performed. A home inspection will look at the systems that make up the building such as: Structural elements, foundation, framing etc Plumbing systems Roofing Electrical systems Cosmetic condition, paint, siding etc If you are buying a home, you need to […]
First Time Home Buyer Advice: Types of Ownership
Before you reach the closing day, you will want to make a decision as to how you will “hold title” to the property. This decision has legal, tax and estate planning ramifications. Therefore, it may be prudent to consult an attorney or certified public accountant (CPA). The following information is supplied for informational purposes and […]
Condominium Financing
In certain parts of the country, especially in bigger cities, condominiums are extremely common. In the past several years condo financing has became a lot more complicated since, unlike a house (where a lender is only concerned with a clean title), condominiums must meet very strict guidelines for a bank to approve a mortgage. These […]
How Banks Make Money
Did you ever think about how banks make money? Their main source of income (other than charging us a myriad of different fees) is lending money and collecting interest on loans. Banks will only lend money when they feel that the loan will be repaid. Makes sense, right? You would do the same. The strongest […]