Category Archives: Finance

How to Afford Mortgage Payments

man handing over a miniature homeIt has been recorded that foreclosures are peaking now. A lot of homeowners are going broke at the sight of looming financial difficulties. Do not be part of the statistics. Plan your mortgage carefully and make sure you are going to afford it no matter what.

Careful mortgage planning should come first

Mortgage planning is the best first step to afford a home you can call your own. Before you scout for a house to buy, develop a relationship with a mortgage lender that will guide you all the way, from completing the necessary documentation to obtaining the loan and of course, repaying it. An expert is key to find the best mortgage rate in Utah and put together a mortgage plan in fighting form.

You must trust the industry experts with their experience and expertise. They have the ability to hand down the most affordable mortgage with terms that are most suitable to your financial capacity. Walk with one hand-in-hand to carefully plan and execute a mortgage without trouble.

Keeping up with the repayment schedule

At first sight, it is easy to declare that you will be responsible for your repayment at all costs. But when things in your budget go haywire, it will be a lot more challenging, and with a weak heart, you will be susceptible to the common debt risks that might lure you to a quicksand of financial troubles.

That is why it is very important that you work out a realistic mortgage plan first. Taking not just your income but also your existing savings into account, you will be able to tell how much you can afford, even when the going gets tough. Afterward, you must also scout for the best mortgage deals available. Getting as much value for your money that you deserve could help boost your chances of paying off your home debt without trouble.

First Time Buyers Stamp Duty: All Important Questions Answered

Two men handshakingUnderstandably, most people have been having some questions on what the reduction on the stamp duty means, and whether it is of help to them in any way. This article expounds on questions and answers surrounding this topic.

In a bid to use and take advantage of the reduction in stamp duty for the first-time buyers, you first need to understand what it is. With the purchase and selling of properties and the jargons involved in its taxation and fees, you need a professional who can hold your hand.

What are the qualifications?

For you to qualify to be a first-time purchaser, you should not have any records of ownership for any residential property whether abroad or in the UK. These properties also include any interests on leaseholds as well as freehold property. Additionally, the property you are purchasing should be your main or only property. That means, even if you are a first-time buyer, you cannot get the relief on a buy to sell or lease the property.

What does the change mean?

A first-time buyer should no longer pay this duty on the purchase of property whose worth is £300,000. If you are buying for the first time and your property exceeds this amount, you will pay 15% stamp duty on the excess amount.

If you inherited a home, do you still qualify?

The idea behind this duty is not based on purchasing but rather ownership. That means, if you inherited a house, you own it now, and thus you are not a first-time purchaser. That means, it is possible not to qualify, even though you have never bought a property.

Money matters and property purchase can make the difference between a comfortable financial life, or ever ending debt and poverty. As such, use a professional where taxes, costs, rates and other property related transactions are related. As such, you can take advantage of the available resources without risking penalties and property loss.

What to Do First Before Viewing Potential Homes

A couple looking to get a mortgageIf you’re thinking of buying a home, you probably have an idea of what you want. You’d love a home with a large kitchen, a spacious master’s bedroom, or a large backyard for the kids. You may even have a list of what qualifies as “the one” or the perfect home. Viewing homes is an exciting process and it’s easy to fall in love with a house that is beyond what you can actually afford.

The First Thing to Do

VIP Mortgage and other mortgage companies in Tempe note that before you start looking for a house, it is best to get prequalified first. This is to know how much you can afford and start looking for houses within that price range. Doing so can avoid disappointments and financial difficulties in the future. The best part is, it is easy to get prequalified, as you can do it with a single meeting with a lender or over the phone.

With mortgage prequalification, you can:

  • Know how much loan you can afford or borrow (an estimate) and plan accordingly.
  • Determine if you qualify for certain mortgage programs.
  • Know the requirements or the things you can do qualify for a loan and better rates.
  • Stick to properties that meet your needs and current finances.

Making Sure You Can Afford

It is common for many first-time homebuyers to get so preoccupied with finding a house that meets all their needs. They overlook this important process, which is crucial in buying “the right one.” Note that buying is a major financial commitment (which can be an investment or debt), so you need to make sure that you can afford paying for it and all the associated mortgage costs.

If you have a serious intention of buying, you can proceed with loan pre-approval. This is more detailed than prequalification, as you need to submit certain financial documents to a lender. This is to assess your credit history and current financial situation. Based on these details, your lender can tell you how much you can borrow. A pre-approval can give you an edge over others when making an offer or a bid.

What to Do First Before Viewing Potential Homes

What to Do First Before Viewing Potential Homes

When’s the Right Time to Switch to Buying from Renting?

Concept of home ownership

Concept of home ownershipIf you’re still renting and considering buying your own place, you probably think if it is the right time to enter the housing market. This is common for many first-time buyers, as a home purchase is a major financial commitment. When determining if you’re ready, you need to look at your current situation, as well as your rental expenses and possible costs associated with buying a home.

Altius Mortgage Group and other mortgage companies note that the main benefit of buying is having a place you can call your own (without having any restrictions from the landlord). It can also help you build equity and get tax deductions. Renting, on the other hand, is a good option if you can’t afford a new house or don’t feel like settling into the same place for years. 

Know the costs

Buying a home comes with a larger payment than renting and you need to come up with a down payment. To find out whether renting or owning is better, look at your current rental expenses and potential mortgage payments. 

Amount you can borrow

The amount of mortgage you can loan will depend on your debt-to-income (DTI) ratio. In most cases, lenders don’t want your total debt to go beyond 36% of your monthly income. They can then give you an estimate, but you shouldn’t forget to assess how much loan you are comfortable paying. The way you manage your debt and finances will play a role.

Receiving tax deductions

When you buy a home, a good portion of your salary is likely to go through mortgage payments. But the good news is you may be able to get a tax break, which is not available when renting. It is best to get an idea of how much tax you will save, as the difference may offset higher mortgage payments.

If you believe that now is the right time to buy a home, contact a reliable lender to know more about your options and start preparing for the loan application and buying process. 

What Are No Income Proof Secured Loans?

Loan on the monitor of a macbookIn today’s modern world of entrepreneurship, more and more people are finding satisfaction in operating their own businesses as opposed to seeking employment. Such self-employed individuals often require an extra source of income for financing the day-to-day operations of their business. This often prompts them to seek financial loans from lenders.

However, accessing loans is not always a walk in the park, as most financial institutions require proof of income to substantiate your claim for a loan. This is where no income proof secured loans come in handy.

What is a secured loan?

A secured loan denotes a contract in which a borrower commits a collateral like their car or home to acquire immediate cash. For instance, if you name your car as collateral, you will agree that the lender may gain legal ownership of your vehicle if you fail to repay the loan fully.

How do secured loans work?

If you are looking to borrow a secured loan, the lender will require you to have collateral that has greater value than the loan amount. For example, you might be able to get a loan of $1,000 if you offer your car that is valued at $2,000 as collateral. If you default in payment, your lender could always sell your car and make a profit from the deal.

Since no borrower desires to lose their collateral, they are always willing to work hard towards repaying their loans. Lenders charge lower interest rates because they know that the borrowers have huge incentives to repay what they owe them. Secured loans in Ogden, including title loans, therefore, are often easier on your pocket. The interest rate for these kinds of loans is partly dependent on your ability to pay on time and the value of the collateral you commit to this purpose.

It is no secret that the majority of conventional lenders grant loans based on your income. Most business entrepreneurs lack sufficient proof of income, which renders it a daunting task to access loans. Luckily, you can rely on secured loans that typically don’t require you to have proof of income, allowing you to solve urgent money issues conveniently.

No Money, No Problem: How Declaring Bankruptcy Can Help Solve Your Financial Woes

Businessman closing his businessThey say that money can solve all of your problems, but what if the problem is the loss of money or the lack of it? Anything can happen, and that includes events that would make you lose all of your money. By then, you — or the company using that money — go bankrupt. That’s the time you declare the appropriate bankruptcy chapter, for all intents and purposes.

Bankruptcy: Good or Bad?

Contrary to how things may turn out for you, bankruptcy can and will have effects on your financial standing. It could become the chance for you to re-write your financial status as a fresh start or it could also be a source of problems.

Utah Bankruptcy Professionals and other experts explain that you have two options — either talk to a Chapter 7 or a Chapter 13 bankruptcy attorney in Utah or whichever state you live. Alternatively, you can also:

  • Review. There is more to learn before deciding to file for bankruptcy. Are you truly bankrupt? Are there debts that would be erased and what would happen to your properties? It isn’t as simple as just getting help — there are conditions to the help that would be given to you, and to what extent you are saved from.
     
  • Learn. You can learn, after filing bankruptcy, whether you will lose some properties or you’re going to get them intact. Filing either Chapter 7 or Chapter 13 bankruptcy depends on your immediate financial situation.
     
  • Save. Bankruptcy is a nasty business, and you will inevitably get people involved. To make sure that you’re going to leave them out of it, you can opt for Chapter 13 bankruptcy, as Chapter 7 does not allow that kind of liberty.
     
  • Get Help. To learn more about Chapter 7 or Chapter 13 bankruptcy laws, lawyers can give you a free initial assessment to weigh your options. Inevitably, you will lose something whichever you choose.

Losing money and going bankrupt doesn’t mean that it’s the end of the world for you. There are ways to get back on your feet. Even if you find yourself facing a Chapter 7 bankruptcy, you can still recover. All it takes is a good lawyer who will guide you every step of the way.

When Rent Prices Continue to Soar

Couple looking at rented house

The renting economy is facing a major setback. Prices continue to rise, and renters are faced with the inconceivable truth: owning a house could be the better option. Though there are several reasons that families are not renting, if you consider the monthly payments and the long-term results, the benefits of owning a home outweigh that of renting.

Is it time for you to make a change?

The Price to Pay

Specifically, this refers to the monthly price. When you’re renting, your primary concern is meeting those fixed monthly payments. However, upon renewing your contract, your landlord may inform you of an increase in the rental fee. A one-bedroom property costing $900 per month in Portland could get an increase of $100 in monthly rent, and that’s a big deal considering that you can own a two-bedroom home for $1200. 

When it comes to home ownership, your main concern is the mortgage rate, which will determine the monthly repayments you have to make. Here, it’s wise to inquire about your options and to assess whether a fixed-rate or an adjustable-rate mortgage would be more favorable. Historical knowledge of how the prices have risen and fallen in Portland can help you decide.

What You Get in the End

For a family, job security is important. So is a roof over your head. You’ll rest easy knowing you won’t be evicted from your house because the landlord wants to rent out the property to someone who is willing to pay more. You also want the security of having the property to your name after completing mortgage payments. In the end, the additional cost you have to pay for home ownership instead of renting goes into securing that property permanently. It seems like a no-brainer, isn’t it? 

Keeping tabs of your finances may be more difficult if you have to adjust to rising prices continually. It’s better if you get something from it in the end, right? 

Despite Irma, Florida’s Housing Market Poised for Recovery

a top view of residential properties in Fort MyersThe residential property market in Florida has recovered in recent years with a rebound in home prices and a stabilizing economy among other factors.

Home prices have increased once again after falling by as much as 50%, while low unemployment also helped the market’s recovery. The jobless rate in the state reached lower than the nationwide average, improving to 4.1% from 11.2%.

Housing Recovery

Sean Snaith, University of Central Florida’s Institute for Economic Competitiveness director, said that Florida has led the country in terms of overall economy by 2012. A strong tourism sector has contributed to the housing sector’s resurgence.

Most of these tourists may have decided to relocate to the state, as it now has the third largest population in the US. The pace of recovery also helps those looking for a mortgage in Fort Myers and other cities, since growing demand fuels competition among lenders.

However, the pace of recovery has become under threat by Hurricane Irma, as experts believe that rebuilding after the storm serves as a major challenge.

Lesson Learned

Construction workers will be the key in rehabilitation efforts after Hurricane Irma and finding them may be difficult, according to Chris McCarty, University of Florida’s bureau of economic and business research director. They are vital for ensuring tourists and residents still come back to Florida, as opposed to what happened in New Orleans after Hurricane Katrina.

However, people will still decide to stay in Florida even after the storm, according to Turnberry Associates CEO Jeff Soffer. Regarding real estate prices, Soffer expects that the damages from Irma will not have any effect at all.

Florida’s housing market will likely remain as an attractive option for both buyers and investors post-Irma, although the state government should have contingency measures to make sure the supposed economic damages do not linger for a long time.