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Crucial Considerations When Buying a Second Home

Categories: Finance Online
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a houseAre you thinking of buying another home, perhaps as an investment or a vacation home? While buying another house has its benefits, it also comes with unique challenges. Bearing this in mind, there are some crucial considerations you need to take into account before even start shopping for a home. Here they are.

Make 100% Certain that You Could Comfortably Afford Two Home Loans

If you’re still not finished repaying your loan for your primary home, you have to ensure that you could afford monthly mortgage payments for your second home. Generally speaking, you would need to make a 10% or 20% down payment and go through the entire mortgage approval all over again so make sure you could handle that, explains a top mortgage lender in Tempe.

Work with a Local Real Estate Agent

Whether you’re looking to buy a house as your vacation home or rental property, working with a real estate agent familiar with the area you’re looking to buy a house in is immensely vital. Your agent could give accurate information on market prices, neighborhoods, as well as the benefit and drawbacks of certain properties.

What About Potential Tax Implications?

For instance, if you’re planning on using your second home as a real second home, you might be entitled to a deduction on your property taxes and mortgage interest, which are the same tax breaks you enjoy by owning your first house. Also, if you’re planning on renting out your second house, you’d need to consider the tax consequences especially if you want to rent out the house for more than 14 days in a year.

Don’t Forget About Extra Costs

If you’re going to utilize your second home as a real home or vacation home, you still need to consider that you probably won’t be staying in it for most of the time, so you need to factor in extra costs like utility bills and a property manager to check your home when you’re away. Likewise, if you want a house near the water, you’ll probably be required to have flood insurance coverage, on top of your standard home insurance.

Purchasing a second home could very exciting, but it could likewise be complicated and time-consuming. With proper planning, advance preparation, some forethought, and help from professionals, you could make a more informed decision that won’t put your finances in a tight spot.


3 Money Habits That Can Hurt Your Mortgage Application

Categories: Finance Online
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A Mortgage ApplicationWhen you are planning investments, making your budget or just spending it somewhere, it’s essential that you do every transaction with due diligence. Whether you are spending your money using your credit card or just taking cash out-of-pocket, Altius Mortgage Group notes that you must also think about how your spending habits can affect your future financial situation.

Remember, the way you handle your finances can either boost your chances or rather jeopardize your mortgage approval. Below, see some of the money habits that can hinder you from accessing a home loan.

1. Making late payments

Sometimes things can get out of hand pretty fast, only to find yourself in a bad financial situation. You will have no choice but to postpone your mortgage loan payments to your lender in Utah or elsewhere.

This is normal, and when you explain yourself to your lenders, most of them will understand. However, a repeated pattern of late payments raises a red flag to the lenders, and they will want to avoid such borrowers.

2. Maxing out your credit accounts

If you shop with credit cards, you need to be careful. If you use them and ensure the balances are paid in time, the better. The problem comes in when you use every credit up to the maximum limit only to make minimum payments every month. This can hurt your overall credit report and eventually affect your future borrowing.

3. Applying for more credit

There is no sense in opening so many credit accounts when you don’t even need the money. To the lenders, you are a business risk if you have too much debt in your name.

Also, another critical thing to mention is applying for a loan from every other lender after one rejects your application. This can significantly lower your credit score and eventually deny you access to investment funding such as mortgages.

The bottom line is that there is no need to apply for a loan when you don’t need the money. It doesn’t just rack up debt burdens for you, but might also affect your future investment opportunities.


A Look at the Different FHA Loan Types

Categories: Finance Online
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an fha loan contractA mortgage is one of the most important deals you will enter in your life. No wonder there are various mortgage deals from both private and government-backed agencies. One of the most popular ones is from the Federal Housing Authority (FHA).

Below are some of the most common types of FHA loans in St. Louis. See which loan type will suit your financial standing and needs.

Conventional fixed rate

As the name suggests, this is one of the most common types of loan where the borrower pays a fixed amount for the whole duration of the loan.

Conventional adjustable rate

Like the fixed rate, adjustable rates are also payable for a certain period. The only difference is various fluctuations in the market determine the rate of payment. This means the amount you pay every month varies. A fixed amount is paid on the first three to five years of the mortgage.

Hybrid mortgage

A hybrid mortgage is pretty much like a conventional adjustable. The difference is that instead of having a fixed rate for three to five years, borrowers who have hybrid mortgages have a 10-year fixed period.

Balloon mortgage

Blowing air into the balloon will make it expand larger and larger. Balloon mortgage payments are also the same. Borrowers initially pay small payments at the beginning of the mortgage and increase the amount, or pay the totality of it in the future. This mortgage type is best for people who are certain that they will have a huge amount of money to come.

Relocation mortgage

If your existing home is for sale, and you are looking for a new one to move at while it is on the market, then relocation mortgages are the right type for you.

Understanding the different types of mortgage can help you better choose the right mortgage type to avail.


Skills You Need If You Want a Job in Finance

Categories: Law and Finance
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Recruiter examining finance applicant's resume

Recruiter examining finance applicant's resumeThese days, you don’t just have to compete with job applicants who are in your area or city or even country. You also have to compete with job seekers from all over the world, according to recruitment firms like Barden. If you’re looking to apply for top financial jobs, here are some of the skills you need to have. Work on these skills if you plan to go for finance director jobs in Dublin.

Advanced Problem-Solving Skills

Advanced problem-solving skills means that you already have the innate ability to be a problem-solver. You should be not only able to pull through during challenging times but also able to spot weak areas before they become significant problems. You can think and analyse problems to devise a solution that would benefit your company. Your team needs your wisdom and guidance to solve problems, and you should be able to help them navigate the business world.

Excellent Communication Skills

Leaders are expected to have excellent communication skills, otherwise, how do you expect them to lead? But communication should always go both ways. Apart from simply telling people what to do, you need to be able to listen to what’s going on in your department and find solutions and take actions. As a financial specialist, you have to be good at crunching numbers, but if you’re aiming for a managerial and directorial role, you have to have good communications skills too, both verbal and written.

Tech-Savvy

In any company and position, the ones who are tech-savvy always have an edge. The whole business digitisation requires a working knowledge and understanding of these systems. It’s not enough that you know the basic math and statistics. You also have to be updated with the new technologies that involve your industry.

Give Yourself an Advantage

Being a leader means you have to work on soft skills, not just hard skills. In today’s modern workplace, soft skills, like delegation, are needed to manage people well. If you’re applying for jobs in the finance department, add these to your skillset.


Reducing Housing Loan Interest Rate through Refinancing

Categories: Finance Online
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As a homeowner and a borrower, you want to get the lowest interest rate on your Approved House Loanmortgage. It would be wise to consider refinancing, particularly when you are paying about 3% or higher for your mortgage. Some housing loans are available at 1% and this is a fixed rate. You can enjoy this rate through refinancing.

Read on to learn how.

Why Choose to Refinance?

Refinance loan refers to a secured loan, which an individual obtains to pay off the existing loan against the current equity. City Creek Mortgage agrees that refinancing your mortgage in Sandy can save you hundreds, if not thousands of dollars for the next two to three years. In a way, refinancing can provide the borrower a debt solution other than filing for bankruptcy. Bankruptcy is always painful, especially when you can never regain what you have already paid for.

Things to Consider

Savings

Remember that the goal of refinancing is to save on interest payments. In maximizing the process, you have to consider if it will lower the monthly installment payments or if you will get a lower interest rate.

Tenure

Another thing to consider is whether the period of payment could be significantly shortened if you are going to refinance your loan. Nevertheless, this could be a staggering decision when your house has higher market value. The underpinning of this is that the higher the market value, the higher the price and the higher the interest rate.

What You Must Do

While interest rates are always fixed, they may also be floating and adjustable. As such, you have to switch to fixed rate mortgages, which are possible through refinancing. When your interest rate is adjustable, it means it moves along with the changes in the real estate market. Comparing the current housing loan interest rate with that of the existing rates in the market would be a necessary first step.

As you are aware now, interest rates are initially lower, which will eventually expand at a specified period (e.g. yearly, after every four years). Through refinancing, though, you can modify the interest rate structure of your loan in a way that it will be more convenient for you to pay.

The market value of your property will affect the interest rate package available for you. So, if your goal is to reduce the interest rate, then consider refinancing it. Do not transact for the first refinance institution that you will encounter. Consider at least three refinance offers and then study them. This way, you can compare the interest rates before making a decision.