Category: General
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All About Escrow
How Escrow Helps Home Buyers—And When It Hurts Through an escrow arrangement, a neutral go-between holds onto documents or collateral while a transaction is underway. Escrow providers usually charge the parties a fee to accept and hold the assets, redistribute the funds pursuant to the parties’ agreement, and ultimately close the escrow account. When you’re…
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What’s the Latest on Covid Mortgage Relief?
The American Rescue Plan, accompanied by $1.9 trillion in stimulus funding, includes $10 billion in mortgage payment relief for homeowners affected by the massive workforce disruptions of 2020. Still more funding is marked to help homeowners get back on track with their insurance, utility bills and property taxes, and to assist USDA mortgage holders in need.…
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Healthy, Wealthy and Wise: Age at Home, Your Way
To age in place is an increasing popular goal. Homeowners across the country are renovating their homes to enhance accessibility and lengthen their independent, productive lives. Of course, there’s a lot more to their goal-setting than preparing to install ramps and handles. Owners are putting sound financial planning into the mix. In this article, we…
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How Much Will You Pay Your Real Estate Agent?
Homes are among the priciest items most of us ever buy. A significant slice of the purchase goes into paying the real estate professionals. Clients should know what they’re paying. Listing agents throughout the United States charge sellers 5-6% of the home’s sale price. In cold, hard, dollar terms: a commission of 5% on a…
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For Property Investors: Six Steps to a 1031 Exchange
Owners of U.S. investment or business properties should know about a key tax-deferral provision allowed by the Internal Revenue Service: the 1031 exchange. Also called a like-kind exchange, it’s a way of swapping one investment property for another. Upgrading to a more valuable investment property would usually involve a taxable sale. But by carrying out…
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Fine-Tuning Your Mortgage: Can a Recast Loan Make Sense?
A recast mortgage could be an option for homeowners who need to tweak their mortgage payments. Most big banks allow at least one recast for a client with a conventional (Fannie Mae or Freddie Mac) mortgage loan. To recast the loan, the owner makes a lump-sum payment to the loan principal. The minimum amount that…
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How to Replace Your Current Mortgage With Cash-Out Refinancing
For a homeowner who has built up substantial equity, a cash-out refinance can free up funds for big projects. Lenders expect to see many requests for these loans this year. According to industry research, cash-out activity should spike in the second half of 2021, when the economy is on better footing, yet interest rates are…
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Interest Rates Are Low. Does That Make Refinancing a Good Deal?
Today’s low interest rates are exciting, and many homeowners are thinking about refinancing their mortgage loans. There’s a sort of FOMO (Fear of Missing Out) in the rush to get loans. But for those who already have fairly low, fixed interest rates (say, 5% or under), saving money through refinancing can cost more than it’s…
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The Partial Release of Mortgage: When You’re Only Selling Part of Your Property
What if a potential buyer is interested in acquiring a part of your property, and you’re willing to sell? If you’re a land owner with full rights in a piece of property, you may legally sell any part of it — unless bound by an agreement to the contrary. If a parcel is mortgaged, an…
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On the Rise (and Protected From Prop 19): The Interspousal Deed in California
A quitclaim deed is sometimes used for transferring a home between spouses, but another option in some states is the interspousal transfer grant deed (“interspousal deed”). It, too, can pass a house between spouses without a sale. The interspousal deed, whose entire purpose is to change the ownership on the title, is the preferred instrument…
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Escheat Homes and the Bizarre Business of Heir-Tracing
There’s an old saying: Where there’s a will, there’s a relative. Like many old sayings, this one is nearly always true. Still, what if someone dies, leaving no heirs to take title to a house left behind? In some cases, wills are found, but they either rule out or just fail to name any currently…
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Hot Tips for Tax Season — And for Hopeful Homeowners
Tax season is here. What better time to think about the tax implications of a real estate investment? Here is a selection of updates and tips, based on 2021 news and policy trends. We’ve designed this article to be informative for homeowners and aspiring homeowners alike.
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Buying a Home With a VA Loan
Real estate buyers qualify for home loan benefits from the U.S. Department of Veterans Affairs if they’ve performed 181 consecutive days of active duty (90 consecutive days in wartime), or spent 6 years in the National Guard or Reserves. Surviving spouses of veterans who died in service, or from related causes, may also qualify. A…
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Two Properties, One Mortgage?
The Pros and Cons of Consolidating Your Home Loans Can money be lent for multiple houses through one mortgage? It can. A number of scenarios could count as multiple properties and one mortgage. Here, we look at a few examples.
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On Stage and Behind the Scenes in a Mortgage
The Key Financial Roles and How They’re Played Especially for first-time buyers, getting to know who’s who in the loan process can be complicated — even surprising! First you meet the mortgage broker. Soon, other actors emerge. As your broker interacts with them, the drama unfolds.