While there are plenty of good lenders out there, there are a few bad apples. If a lender makes numerous mistakes during the loan process, it's a good idea to bring up problems to the state agency that regulates lenders. It may be possible to take action against the bad lender.
Young first time home buyers are often worried that the lack of a tax filing history will keep them from being approved for a first mortgage. But a history of filing taxes is not always necessary when applying for a first mortgage. Lenders have other ways to establish credit history for a first mortgage besides tax filing history.
You should always pay off your high-interest, non-deductible debts first. When you prepay a debt, you're effectively earning the interest rate the debt carries on each dollar. Once your debts are paid off, you start savings the cash you would have paid each month to service the debt. Consider using your tax refund to pay credit card debt, or take out a home equity loan with a lower interest rate than your credit cards.
To pay off your mortgage early you will want to prepay your mortgage loan's principal. But when should you make extra mortgage payments? It doesn't matter when you make the extra mortgage payments since the exact date is what's tracked, not the year. Learn how much you can save if you prepay your mortgage.
A couple wonders if they should have paid off their mortgage with a home equity loan. They now no longer have a tax deduction. Paying off the mortgage with a home equity loan means they have a lower interest rate, which they can use to build their retirement savings. However, with retirement approaching, they need to evaluate how to pay off the home equity loan and keep saving for retirement. A fee-only financial planner can help evaluate their options.
A homeowner wants to pay off his mortgage before retirement, but is unsure how to do that on his income. After age 59 1/2, he can withdraw money from a 401(k) plan without any withdrawal penalty. However, he may owe income taxes. He should look at options to gradually withdraw the money and let it continue to grow inb the stock market. A fee-only financial planner can help him evaluate his options for retirement.
If you have extra cash, what should you pay off first to boost your personal finances: credit card debt or car loans? Ilyce recommends paying off high interest credit card debt with extra cash before car loans and other loans. Credit card debt usually has higher interest than a car loan, so paying off credit card debt first and prepaying a car loan later is the best first step to personal finance management.
No one really knows what will happen with real estate property prices over the short term. Over the long run, however, prices should continue to climb. So in ten years, the house you purchase today will probably be worth more.
As you get closer to retirement you may have extra money and may be debating whether to prepay your mortgage or invest more money in the stock market. While people tend to get better returns investing in the stock market rather than in real estate, it is nice to have your home paid off when you retire. If you decide to invest in the stock market make sure to research the investments you're considering ahead of time.
A newly married couple is confronted with significant debt from a previous marriage. They may be able to clean up her credit, but the husband needs to be careful her bad credit doesn't drag his down. He needs to keep his credit separate and not use his wife's credit to qualify for a home loan or credit card, until her credit is cleared up.
