Apr
29
Good question, with lots of answers. The fact is that—aside from the price of a home—owning a home comes with a number of responsibilities and choices, all of which have price tags associated with them. Most people know the about the obvious costs: the cost of purchasing the home and the cost of financing the …
Apr
20
Home Sales Up, Prices Down The National Association of Realtors (NAR) reported that the number of existing homes sold in March was up 3.5% versus March 2010. However, the median home price fell 5.9% to $156,900. Read more here. Connecticut Looks to Change Homeowners Insurance Laws The state House of Representatives in Connecticut is considering a …
Apr
07
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 …
Apr
07
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 …
Mar
22
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 …
Mar
21
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 …
Mar
19
Homeowners insurance insures a homeowner against financial loss due to certain, specified perils. These perils include fire, theft, and storm damage, among others. Typically, a lender who has made a mortgage loan on a property will require the homeowner to maintain homeowners insurance on the property until the mortgage loan is paid in full. It …
Mar
19
An escrow account is a reserve fund that many mortgage lenders require borrowers to use. In addition to regular principal and interest payments (usually monthly payments), the borrower makes additional payments into the escrow account. Typically, these additional payments are for property taxes and homeowners insurance, but they may also include payments for mortgage insurance …