Real Estate Daily Blog

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• Credit unions, banks and mortgage companies offer mortgages. It is wise to know the terms offered by at least 5 lenders within your vicinity and include in your computation all other fees like closing costs to get the best terms.
• The interest paid in advance to lower the rate on a loan is called points. One point is equal to 1% of the mortgage amount.
• Typically, one point is 1/8 of 1% off the rate on a loan. Paying points to lower the rate on a loan rests on what the buyer considers important: lower monthly amortizations or higher closing costs; the planned length of stay in the property and how many points the buyer wants to shoulder. Points are usually tax deductible.
• A balloon is a type of mortgage that involves payment of the loan after a specific period. For loans with a term of 3-15 years, payments are the same. For loans longer than this term, the outstanding principal balance could be due in full or subject to refinancing. Usually,balloon mortgage rates are less 1/4% - 3/4% when you have anywhere between a 16 to 30-year fixed mortgages.

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Many attorneys who limit their practice to estate planning are values-based, relationship-driven, client-centered and counseling-oriented. And the good ones are willing to work together with other professionals on your behalf. They understand that thorough estate planning involves more than just legal advice. The key is to find those attorneys who meet this description.

So where do you find these rare creatures? How do you know if you’re dealing with the right kind of attorney? The right kind of attorney will have an orientation toward relationship-building and counseling rather than mere document preparation.

The first thing he or she will offer is the ability to listen carefully to not only your goals
– but also your hopes, dreams, and aspirations for yourself and your loved ones. The attorney ill carry on a sensitive dialogue that will enable you to make clear your wishes to maintain control over your affairs, to be cared for properly in the event of a disability and to provide meaningfully for your loved ones after you are gone.

If you’re purchasing a house through a loan, or if you plan to mortgage your home, you have the option of paying it off within a short period of time or a long period of time. So which will you choose?

That depends on your needs and financial capacity.

Go short term if you have enough to feed your family and do your everyday necessities after you have paid off your amortization for the month.

Advantages: lower interest, ownership immediate.
Disadvantage: initial cash outlay is abruptly bigger.

Go long term if you want to invest but you are financially limited but still would be capable if you choose the long term scheme.

Advantages: monthly investment not heavy on the pocket; when you die earlier than the house is paid for, it is considered paid as long as you have morgage redemption insurance (MRI).
Disadvantage: Higher interest rate.

Financing details have to be included in your offer so that the seller can evaluate them. The size of your down payment is part of the financing details that you need to provide; the larger the size of your down payment, the more likely the lender will approve your mortgage. Your offer should also state what kind of mortgage you’ll be getting (fixed rate or adjustable rate). Protecting yourself is another reason why you should include your financing information in your offer. Should the interest rate suddenly rise quickly, you might be paying a higher mortgage than you expected. Placing a maximum acceptable interest rate in your offer protects yourself from that instance.