Owning your own home is an aspiration for many. It can also be a proven way to build wealth. Understanding mortgages is essential to buying your first place.
FICO
First, it is import to understand your FICO score and how to improve your FICO score. and why we think that FICO scores are changing because of the financial crises. We believe that the FICO score system should be revised.
Refinancing
With mortgage rates at record lows, we also discuss when refinancing makes sense, and what things to consider in the process. With the financial situation in 2009 as it is, if you are thinking about refinancing or taking out a new mortgage, Jane Bryant Quinn’s latest column has a great breakdown of the realities of obtaining mortgage financing in the current lending climate. Bottom line: if you don’t have a 20% down payment, good credit and some solid income, its going to be a LOT harder to get a mortgage. Here. While it might not even still be an option, you can check out some thoughts on PMI versus second mortgages.
Mortgages in the Financial Crises
With millions of home owners under water, tent cities, and a 60 minute piece predicting another year of housing downturn. it is difficult to know when things will turn around. As times getter tougher, paying off debt to reduce payments and pre-pay your mortgage to guarantee a return can be considered a better bet. Plus, keep in mind the recent increases in mortgage fees due to the financial crises.
Taxes
Also in mind that mortgages do have a big advantage in terms of tax deductions for interest paid.
While mortgages certainly serve their place, we are all pretty happy when we manage to whittle away at then until they are gone. We were certainly glad when we paid off our second mortgage.
Cheers,
Miel&James
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