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  • Which is better, a 15-year mortgage or a 30-year mortgage?

    Let me answer this question with another question: Would you like to pay more money or less money to buy a house?  Most people would like to pay less money.  And that’s why a 15-year mortgage is usually a better choice. There are two factors that make a 15-year mortgage cheaper than a 30-year mortgage.  …

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  • What’s in the news for April 29, 2011?

    Brokers Add Mobile Apps to Meet Buyer Needs Brokers are using applications for iPhones, iPads, and other smart phones and tablet computers. These apps allow interested buyers to get immediate information about homes for sale and the areas that surround them.  Read more here. Short Sales Not Easy, But Can Pay Off And though they can …

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  • What are the six most important provisions of a listing agreement?
    Number 3…

    Number 1: The type of listing agreement. Number 2: The real estate broker’s commission. Number 3: The level or types of services that the real estate broker is committing to provide you.  In the past, nearly all brokers were “full-service” brokers who provided myriad services for a relatively high cost.  However, recent years have seen the …

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  • How are closing costs summarized on a HUD-1 Settlement Statement?

    Fourth in a 5-part series. Page 2 (Part L) of the HUD-1 Settlement Statement lists all of the “closing costs” associated with the real estate transaction.  The majority of the costs are driven by the buyer’s lender, but not all of them.  The terms of the negotiated real estate contract determine which costs are paid …

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  • How does the HUD-1 Settlement Statement summarize the seller’s side of the transaction?

    Third in a 5-part series. Part K of the HUD-1 Settlement Statement summarizes the seller’s side of the transaction in lines 401 through 603.  Line 603 is the total of all of the seller’s debits and credits and shows the amount of money that the seller will pocket at closing.  This post is a line-by-line …

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  • How does the HUD-1 Settlement Statement summarize buyer’s side of the real estate transaction?

    Second in a 5-part series. Part J of the HUD-1 Settlement Statement summarizes the buyer’s side of the transaction in lines 101 through 303.  Line 303 is the total of all of the buyer’s debits and credits and shows the amount of money that the buyer must bring to closing.  This post is a line-by-line …

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  • How do I claim the home buyer tax credit on my federal income taxes?

    In an attempt to get people to buy houses in 2010, the federal government enacted a series of tax credits to give money back to people who bought homes during the first part of 2010.  It is truly a giveback:  if you qualify for the credit, the government will give you money.  For example, if …

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  • Did the property taxes on my new home go up just because I bought the house?

    Ah, you may have just found the Purchase Price Gotcha! Here’s a little-known problem to look out for.  Especially in a time when local governments are short on staff and resources, property tax appraisers are often not able to accurately assess property values on a timely basis.  So in a period of declining market values, …

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  • Why do property taxes matter when buying a home?

    From the practical perspective of the homeowner or home buyer, property taxes can be a critical factor. Home buyers need to take two factors into consideration.  First is the amount of property taxes you will have to pay.  Some areas have higher property taxes than others.  Property taxes vary by state, but they can also …

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  • What is a mortgage payment?

    A mortgage payment is a periodic payment used to repay a mortgage loan.  Traditionally, mortgage payments have consisted of four parts: principal payments, interest payments, property tax escrows, and homeowners insurance escrows.  Of these, only the principal payments go toward reducing the outstanding balance of the mortgage loan.  Mortgage payments are typically due once per …

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