Mortgage Tag Archives | Southwest Florida Real Estate from Sandra Rubinstein

Should I Go To The Internet To Finance My Home Purchase?

Published on July 11, 2015 by Sandra Rubinstein

There is so much energy expended to find your “Dream Home”, right? So when your Realtor hands you a list of Mortgage Brokers and/ or Institutions you are relieved that this decision can be directed by your Agent. Not so Fast!

There ARE many benefits to “shopping around” & to include the On-Line Financing Companies in your evaluation process. This simple act may save you $$$ on fees and possibly even the interest rate. (By the way, your Credit Score is not negatively affected if you are shopping for a Mortgage; unlike a general Credit Inquiry)

Here are a few things to look for and tips on an internet Lender site.

1. Shop anonymously until the time you make your decision.

2. Deal only with sites that the lender will commit to or “lock in” legally on that particular day & not only the day you are contacted by the Loan Officer. (Lenders “set” their interest rates on a daily basis & some may adjust multiple times during the day) Look for sites that include wording such as- “as of” with a date and time stamp.

3. Deal only with sites that disclose not only the interest rate but the Lender’s fees referred to as “Points”. They appear as a percentage that translated to a $$$ amount. ARMS (Adjustable Rate Mortgage) should also disclose the loan’s Margin, Index & Rate Caps.

4.The price of your loan package will be determined by the Property’s Zip Code, Occupancy (Primary, 2nd Home or Investment), Loan Type, Down Payment, your Credit Score & whether you choose to waive Escrow. If the numbers you are given do not include the adjustments for the above factors-just move on.

This article was summarized from an article by Jack Guttentag, PH.D. Professor of Finance Emeritus at the Wharton School of the University of Pennsylvania.

Additional Information may be found online @ www.mtgprofessor.com
“How effectively can you shop at Multi-Lender Web Sites”

SW Florida More Affordable For “First Time Home Buyers”

Published on July 3, 2015 by Sandra Rubinstein

According to RealtyTrac, Sarasota – Manatee, & Charlotte Counties are actually more “affordable for first time low down payment Homebuyers, and/or Consumers who wish to purchase a home after Foreclosure. “Affordability” is defined as to what percentage of your income that would be needed to buy & own the home.

-Charlotte County: 17.39 % (down from historic average of 22.79%). Charlotte County ranked 123rd of 370 metro areas for “affordability”

-Sarasota – Manatee Counties: 22.66% (down from historic level of 28.53%). Sarasota – Manatee Counties ranked183rd of 370 metro areas for “affordability”.

Here is some additional good news: there are still many available first time homeownership & down payment assistance programs that are still accessible. Take the time to “shop & compare” a number of lending institutions & ask to be “Pre-Qualified”. You may be surprised that your wish of Home Ownership may be more accessible than you had thought. (Your credit score is NOT affected negatively through credit inquiries when “shopping” or comparing mortgage institutions)

As always, if you have any questions or if you would like additional information please feel free to text or call me @ 941-268-8918 or
email: Sandra@SandraSellsRealEstate.com

Hope every one has a safe, happy & fun July 4th weekend

Tax Tips For The Homeowner: PMI & FHA Mortgage Insurance Premiums (Part 2)

Published on March 11, 2015 by Sandra Rubinstein

Welcome to Part 2.

What is PMI? If you have a mortgage that has NOT been secured by at least a 20% down payment of the appraised value or sale price, your lender will require that the mortgage to be insured against the possibility of the default of the payments on the loan.

So how does this charge translate on your tax return?

1. On loans taken out from 2007 or later, you may deduct this monthly charge, that is part of your monthly payment, on Schedule A of your itemized return.

***Please note, unless Congress renews the deduction, 2014 will be the last year that this tax deduction will be eligible (Please check with your Tax Advisor for the status of the deduction)

a. If your adjusted gross income is more than $100,000.00 your deduction is reduced by 10% on each $1000.00 ($500.00 for individuals that are married but filing separately) example: if you are making $110,000.00 or more the deduction may not be claimed.

2. There are government insurance fees for loans funded by the FHA, VA & the Rural Housing Services agencies. Some of the fees may be paid in full at time of closing. As their deductions may be complicated and dependent on various contingencies & vary form agency to agency, it is best to consult a tax advisor or other professional resource.

Please check back for Part 3: Prepaid Interest Deduction

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