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
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 …
Mar
29
2010 is the last year in which you can claim a deduction for mortgage insurance premiums. Enter your qualifying mortgage insurance premiums on line 13 of Schedule A; enter the total of your allowable deductions from Schedule A on line 40 of Form 1040. If your adjusted gross income (AGI) is greater than $100,000, you cannot …
Mar
21
Mortgage insurance insures a lender—not the borrower—against a borrower defaulting on a mortgage. If the borrower fails to pay the loan as agreed, the lender can seek payment from the mortgage insurance company. Most mortgage insurance is private mortgage insurance (PMI), but there are some government-sponsored mortgage insurance programs, such as the programs provided by …
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 …