Borrowing Basics

Do you ever feel trapped by your finances? Maybe you have several big projects, like your home needs new flooring or your AC is on its last legs. Perhaps you opened your mailbox to find unexpected medical bills. All these projects and expenses can add up quickly, especially when they hit at once.   Luckily, if you’re a homeowner, you have a unique and powerful way to manage these costs without draining your savings. A home equity loan allows you to affordably borrow against the equity in your property – providing a slew of financial perks that shouldn’t be ignored.  What…

If you’re preparing to purchase your first home, you’re probably scratching your head more than you anticipated. Between the complex terminology and variety of home loan options, the home-buying process can quickly become confusing.   One area that first-time homebuyers struggle the most to understand is their monthly mortgage payment. Unlike a car loan, it’s not as clear-cut. And most real estate websites and financial calculators only focus on the principal and interest portion of your payment – which can be very misleading.  Before you get your hopes up and realize that the house you’ve been eyeing is out of…

One thing many first-time homebuyers are somewhat blindsided by is PMI (Private Mortgage Insurance). You may see it mentioned in some real estate advertisements, but not fully understand what it means. While PMI isn’t necessarily required for everyone, you should expect to pay it if you’re applying for a mortgage that isn’t backed by the government (FHA, VA, and USDA loans, for instance) or if your down payment is less than 20 percent of the value you’re borrowing.  Essentially PMI is protection for your lender. If you’re unable to make your payments, then the insurance helps lenders recover their losses.…

We’re going to say it! YOU DON’T NEED TO SAVE 20% FOR A DOWN PAYMENT ON A HOME.   Let’s be honest. Saving 20%, especially in today’s economy, isn’t realistic. But purchasing a home can be a great financial decision that can reward you for years to come.   Buying a home is an investment in your future. Let’s say your rent is $1,500 monthly. If you keep that same rent for the next 30 years, you will have paid $540,000. And that’s being optimistic, considering rent tends to increase exponentially by the year! You wouldn’t get any of that money back…