Search results for home financing
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Posted
Sep 25 2009, 06:18 AM
by
Karen Datko
Rating:
Money Blog: Smart Spending Blog - MSN Money
This post comes from partner blog The Dough Roller.
Particularly for those looking to buy their first home, the big question is always: How much house can I afford based on my income? I can still remember when my wife and I tried to crunch the numbers when we bought our first home back in 1993. I was scared to death that we wouldn't be able to afford the mortgage payments. But we did, and as the months and years went by, our mortgage payments became more manageable.
If you're considering buying a home, it helps to have an idea of how much you can afford. It's very important to think of this question from two different perspectives.
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Posted
Aug 19 2009, 06:14 AM
by
Karen Datko
Rating:
Money Blog: Smart Spending Blog - MSN Money
This post comes from Xin Lu at partner blog Wise Bread.
Rising home loan delinquencies and foreclosures have made con artists very busy.
These scammers use public records to find homeowners who are in trouble, and then use a variety of schemes to take their money and property in the name of helping them avoid foreclosure. If you have late payments on your home loan, it's likely you will be targeted.
The following are some warning signs that you are dealing with a possible scammer:
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Posted
Aug 06 2009, 05:57 AM
by
Karen Datko
Rating:
Money Blog: Smart Spending Blog - MSN Money
This post comes from Trent Hamm at partner blog The Simple Dollar.
A while back, I wrote about my best friend (besides my wife), John. John doesn't spend money on frivolous things at all. He spends way less than he earns and is really careful with his money, saving up for the future. He lives in a very small apartment in a poor neighborhood, bicycles to work, and doesn't engage in any expensive hobbies.
Until recently, he had been socking his money away in an ordinary savings account. He bought a few certificates of deposit along the way to increase his savings rate, but he was (and still is) pretty risk-averse. He had no interest in putting his money at risk.
Several months ago, he shocked me by announcing he had purchased 20 acres of undeveloped land within driving distance of Des Moines, a pretty serious investment. Given how risk-averse John was with his money, the purchase really surprised me. He never struck me as a real estate developer.
Recently, he invited my family down to the land to camp for the weekend. He had wanted to "clean it up" some before we checked it out.
We were really impressed.
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Posted
Jul 10 2009, 05:45 AM
by
Karen Datko
Rating:
Money Blog: Smart Spending Blog - MSN Money
This post comes from partner blog The Dough Roller.
Among the many personal-finance debates, the 30-year versus 15-year mortgage is always high on the list. In one corner you have the interest savers who swear by the 15-year mortgage (think Dave Ramsey), and in the other corner you have the lower-payment folks who swear by the flexibility of a 30-year mortgage.
We're in our second home, and in both we financed with a 30-year mortgage, so we've preferred the lower payments over the potential interest savings. But the truth is that there is no one answer to the 30-year versus 15-year mortgage debate. What works best for one homeowner may not work best for another.
Let's take a look at a mortgage example so we can see some real numbers, and then we'll look at the factors one should consider when choosing a home loan.
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Posted
Jul 08 2009, 12:13 PM
by
Karen Datko
Rating:
Money Blog: Smart Spending Blog - MSN Money
A new study indicates that 26% of homeowners who quit paying the mortgage can afford to pay but no longer want to because they owe more than the house is worth.
The economists who did the study call this a "strategic" default. Time magazine reports:
"They can still afford to pay but they decide not to," says Paola Sapienza, a finance professor at Northwestern University and one of the paper's authors. "It's very easy to do this in the U.S."
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Posted
Jun 18 2009, 12:42 PM
by
Karen Datko
Rating:
Money Blog: Smart Spending Blog - MSN Money
The people often overlooked in the housing crisis are renters who are forced from their homes by foreclosure. Remember that news story about the sheriff who stopped foreclosure evictions because so many innocent tenants were suddenly made homeless?
Laws vary by city and state, but, generally speaking, a foreclosure nullifies a lease. Your landlord stopped paying the mortgage and, often without notice, you're out on the street.
How many people are we talking about? Lots. A post at Dollars & Sense said, "According to the National Low Income Housing Coalition, renters make up an estimated 40% of families facing eviction because of foreclosure."
Finally, there's some help of sorts for renters who face losing their homes.
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Posted
Jun 15 2009, 11:12 AM
by
Karen Datko
Rating:
Money Blog: Smart Spending Blog - MSN Money
The rules have changed for the $8,000 first-time homebuyer tax credit contained in the federal government's massive economic stimulus plan.
Qualifying homebuyers can now use the anticipated credit to secure a loan to help pay closing costs and enhance their down payment, then pay it off after they file their 2009 (or amended 2008) tax return. How handy is that? In fact, in some states, people can leverage the tax credit to buy a home without using one dime of their own money for a down payment.
Wow. That seems great. Rather than having to save for a house, you can use this bailout from the government to close the deal even before the tax credit is deposited in your checking account. The rule changes "should really help stimulate home sales!" "FFB" at Free From Broke predicted.
But haven't we learned that buying a home without saving first is a bad idea?
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Posted
Jun 02 2009, 11:48 AM
by
Karen Datko
Money Blog: Smart Spending Blog - MSN Money
This post comes from partner site ConsumerAffairs.com.
As a number of states have taken stronger action against foreclosure rescue and loan modification operations, the Federal Trade Commission has begun drafting tougher federal rules and is seeking input from the public.
Are these services unfair or deceptive? Should they be reined in by proposed rules that would set standards to protect consumers?
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Posted
May 19 2009, 01:33 PM
by
Karen Datko
Money Blog: Smart Spending Blog - MSN Money
Blogger "Stew" at Gather Little by Little finds himself in a housing situation that he aptly describes as a "pickle," and not the sweet bread and butter kind.
Here are the particulars. Please let us know what you think.
- Stew (who blogs with "Gibble" or "glblguy," the creator of Gather Little by Little), his wife and three small children moved to another state 14 months ago for a new job and are renting a place. They put their previous home on the market.
- That house has not sold and the one renter they had lived there only a short time.
- The $1,000 to $1,200 a month to keep up the mortgage, home-equity loan, taxes, insurance and utilities has drained their savings and most of their retirement accounts.
- The mortgage is now 120% of the value of the house.
- Stew got $14,000 from a balance-transfer credit card deal at 0%, which he calls "wiggle room" money. Yikes.
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Posted
Apr 14 2009, 11:51 AM
by
Karen Datko
Rating:
Money Blog: Smart Spending Blog - MSN Money
Madison at My Dollar Plan launched an ethical debate. She and her husband qualify on paper for a mortgage modification through the Making Homes Affordable program -- but they don't really need it.
Is it OK to take advantage of a program intended to help struggling homeowners when you can easily afford your monthly payment?
That's one of several questions about ethical personal-finance behavior that have surfaced online recently. Age-old dilemmas have been cloaked in modern terms. Here are a few that PF bloggers have addressed:
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