This video does a pretty good job of explaining exactly how a biweekly mortgage works and the benefits. The benefits really go to making extra payments each year which can cut years off of your mortgage. It also aligns well with your biweekly paychecks, so it’s extremely convenient.
Just be careful in case you bank ties fees to this payment structure.
OK. Maybe the house pictured above is a bit much for your kid’s first house.
But, that doesn’t mean you can’t help out your kids by becoming their mortgage lender.
Between slumping prices and low mortgage rates, it’s a good time to look for real estate bargains. But thanks to tightened lending standards, legions of young would-be homebuyers aren’t exactly in a position to take advantage of the opportunity. That’s where their parents come in: One in three first-time buyers received either a gift or a loan from their families to help buy a home in 2011, according to the National Association of Realtors.
Such a move can provide significant financial benefits to child and parent alike. But you need to proceed carefully to maximize the tax and estate-planning advantages and avoid unpleasant family conflicts.
Read the entire article for the details.
With mortgage interest rates being so low, more and more people are refinancing for obvious reasons.
When considering whether to refinance your mortgage there are many factors to consider, with obvious ones being the interest rate and the type of mortgage.
But there are many more factors to consider, including these from a helpful list compiled on Yahoo! Homes:
How long will I be in my home? The general rule is that unless you are planning to stay in your home at least another five years, then refinancing may not make sense. This is because a refi usually carries closing costs and the costs could outweigh the benefits. You usually “break even” at the five-year mark, which means you have paid for the costs to refinance.
Is there a prepayment penalty on my current mortgage? Since many mortgages carry a penalty if you pay off your existing mortgage, find out if you will be charged a “prepayment penalty.” The amount varies, but it can add up to several months’ worth of interest payments. Ask your lender.
What are the costs of the new mortgage? Lenders almost always charge fees for taking out a new loan. These can add up to an average of $5,000 to $10,000, depending on the size of the loan. Charges include application fees, appraisal, origination and insurance fees, plus title search, insurance and legal costs. Unless your new rate is at least a half a percentage point lower than your current rate, the fees may eat up your potential savings.
Will my tax savings be reduced? If you claim mortgage interest on your tax return, refinancing to a lower rate will mean that you’ll have less mortgage interest to deduct. That means you might have to check with your tax advisor to see if your overall savings will be increased if you refinance.
Check out the entire list so you can properly evaluate whether to move forward.
Here’s more bad news on the housing front:
Home prices fell for a third straight month in November in nearly all cities tracked by the Standard & Poor’s/Case-Shiller home-price index.
The declines show that most homeowners are not reaping the benefits from some signs of an improving housing market.
Prices dropped from October in 19 of the 20 cities tracked.The biggest declines were in Atlanta, Chicago and Detroit. Phoenix was the only city to show an increase.
If you’ve been waiting to purchase a home, this is good news. But for many stuck in underwater mortgages, this is terrible news.
The foreclosure crisis has been a huge drag on the economy since the economic collapse of 2008. Warren Buffett has explained that we won’t have an economic recovery until we have a housing recovery.
One of the controversies, however, involves bad practices by the banks, and whether consumers should get a break in the face of this misconduct.
Mitt Romney apparently doesn’t think so, as he is arguing in Las Vegas that foreclosures should speed up.
“Don’t try to stop the foreclosure process. Let it run its course and hit the bottom,” Romney said when asked by the Las Vegas Review-Journal what he would do to jump-start the floundering housing market. “Allow investors to buy homes, put renters in them, fix the homes up and let it turn around and come back up.”
The administration, Romney said, “has slow walked the foreclosure process … that has long existed and as a result we still have a foreclosure overhang.” Nevada Attorney General Catherine Cortez Masto sued Bank of America in August, accusing it of foreclosing on homes without proper authority. Nevada is beset by economic turmoil and foreclosures. Last year, one in nine Las Vegas homes received a foreclosure notice.
On pure economic terms he has a point, but he seems to ignore how millions of American were screwed over by the banks. Yes, many home buyers made mistakes, yet it’s clear that the banks were jamming through mortgages just to rack up fees.
It will be interesting to see how this plays out.
© 2025 Checkbook News
Theme by Anders Noren — Up ↑
