Eight times every year, the Federal Reserve’s Federal Open Market Committee (FOMC) meets to discuss and possibly alter their position on monetary policy. There are several different courses of action they could take, the most common being quantitative easing, buying and selling government securities, and raising or lowering the federal funds rate. Most recently, the... View ArticleRead More
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Buying a home is one of the most stressful events, but you can ensure a smoother process by making sure your credit is in good shape before applying. Here are three reasons why you should check your credit before buying a house. 1. Your score isn’t as high as you think Even if you know... View ArticleRead More
Losing your home to foreclosure can have a devastating impact on your credit score. But here’s the good news: it doesn’t mean that you won’t be able to buy a home again. If you work to steadily rebuild your credit, you could become a homeowner again. And in some cases, you can accomplish this in... View ArticleRead More
Over a 30-year period, is it generally cheaper to rent or to buy a house in expensive places like San Francisco or New York City?
Yes, housing prices can be astronomical in cities such as San Francisco. But monthly rents are also extremely high in these cities, especially in their more desirable neighborhoods. Here’s some good perspective: A recent study by Trulia of the country’s largest 100 metropolitan areas found that buying a home in these urban areas is 38... View ArticleRead More
What makes owning a home such a smart financial decision? As you pay off your mortgage loan – or as your home increases in value – you build up equity. You can then tap into this equity to help fund home repairs, pay a child’s tuition or invest in another piece of real estate. What... View ArticleRead More
After I buy a home and rent it out, how long do I have to wait to take out a home equity line of credit on that property? I’d like to do this quickly so I can use my line of credit to buy another home.
The good news is that you can take out a home equity line of credit, better known as a HELOC, on a rental property. Most lenders will give you a HELOC – if your credit is good – on rental properties that have up to four units. And lenders don’t care what you’ll use your... View ArticleRead More
If you took out a mortgage loan to pay for your home, the odds are high that your mortgage is backing up a publicly traded security. This sounds complicated. But mortgage-backed securities are actually a common and important investment type today. Here’s how the process usually works: First, a homeowner takes out a mortgage from... View ArticleRead More
Is it worth it to make double payments on my 30-year fixed-rate mortgage with an interest rate of 4.75 percent?
It’s tempting, if you can afford it, to make two mortgage payments a month. This will help you slash the time it takes to pay off your mortgage loan. And over time, it can save you a significant amount in interest payments. And let’s be honest: It’s nice not to have make those mortgage payments... View ArticleRead More