08
Nov
By Todd Grey
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Mortgage Tips, ,

Understanding Assumable Mortgage Loans

Mortgage loans are an essential aspect of financing the purchase of a property. Among the various types of mortgages available, one option that may be advantageous for both buyers and sellers is an assumable mortgage loan. An assumable mortgage loan is a type of home loan agreement that allows a homebuyer to assume the existing mortgage of the seller when purchasing a property. In other words, the buyer takes over the seller's mortgage terms and conditions, including the interest rate, repayment schedule, and remaining balance. Benefits of an Assumable Mortgage Loan: Favorable Terms: Assumable mortgages often carry lower interest rates…
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19
Oct
By Todd Grey
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Mortgage Tips, ,

Understanding Why You Don’t Need to Pay Off Your Mortgage Early

In the world of personal finance and homeownership, there's a common debate: should you pay off your mortgage early, or is it better to take a more relaxed approach to your home loan? While the idea of being mortgage-free is undoubtedly appealing, there are compelling reasons why you might not need to rush to pay off your mortgage ahead of schedule. Tax Benefits: Mortgage interest payments is a tax deduction that can help reduce your taxable income, potentially lowering your overall tax bill. Before you rush to pay off your mortgage, consult with a tax professional to determine how this…
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18
Oct
By Todd Grey
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Mortgage, Mortgage Tips, ,

How Do Mortgage Lenders Decide How Much You Can Borrow?

When it comes to buying a home, one of the most critical factors to consider is how much you can borrow through a mortgage. Mortgage lenders play a pivotal role in determining your borrowing capacity. We will delve into the intricacies of how mortgage lenders decide how much you can borrow. Your Income and Debt One of the primary factors that mortgage lenders consider is your income. They want to ensure that you have a steady source of income to make monthly mortgage payments. Generally, lenders prefer that your housing expenses do not exceed 28% of your gross monthly income.…
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12
Oct
By Todd Grey
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Mortgage Tips, , , ,

What Makes Up A PITI Mortgage Payment?

Many mortgage payments are made up of four parts, called PITI. PITI is an acronym that stands for principal, interest, tax, and insurance. It's important to understand PITI because it is the real number you need to use in order to find out how much mortgage you can afford to pay each month. One of the biggest mistakes first-time homebuyers make is using only the principal plus interest figure to calculate how much they'll be paying every month for their mortgage. Then, when the lender comes back and denies them, the prospective buyer is confused. Knowing and understanding PITI will…
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16
Aug
By Todd Grey
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Mortgage Tips, ,

Avoiding Becoming House Poor: A Path to Financial Security and Balance

As the housing market continues to evolve, it becomes increasingly crucial for aspiring homeowners to tread carefully and avoid falling into the trap of being house poor. The dream of owning a home should not come at the expense of financial stability and overall well-being. Here are some essential tips to steer clear of this precarious situation: Setting a Sensible Budget: Before even considering purchasing a house, it's imperative to create a comprehensive budget that includes all your income, expenses, and financial goals. Be honest with yourself about what you can afford, considering not only the mortgage but also property…
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