Mortgage, Home Purchase

Reverse mortgage purchase

Today we are going to be: Discussing whether or not to buy that next home with cash or not? I know, what a problem to have! But it’s a serious decision, especially for Baby Boomers who have significant equity in their current home.

Many of my clients (especially Baby Boomers who are downsizing or relocating) ask me if they should pay cash for their next house or finance it with a new loan. While the idea of owning a home free-and-clear is certainly appealing, I always present them with a series of questions to help them clarify the big picture. Perhaps you or someone you know may benefit from these as well:

How much will you be left with after an all-cash purchase? Maintaining a safety net of three to six months’ worth of living expenses can be a real comfort after you’ve done well on the sale of your home. How comfortable will you be if an all-cash purchase brings you near zero?

Are you retiring soon? This goes to two issues: First, whether or not the absence of a mortgage will significantly improve your monthly position, keeping in mind you’ll still need to make insurance, tax payments, and maintenance. Second, if you’re thinking about applying for a loan. It can be a challenge to qualify for a loan after you’ve retired, so if you think you’ll need a loan, it may be better to get it in advance.

What’s your tax and income situation look like? For some people, the mortgage interest deduction on income taxes has a significant impact on their annual tax bill and overall cash flow picture. It’s always a good idea to consult with a financial professional before you “write off” the write off.

Might you need to help someone out in the near future? Sometimes having the liquidity to help family members or close friends in need is important. Are you planning to help someone else with a down payment on a home? Is it likely you’ll have to help a close friend or relative through a tough time? Having cash on hand can be a comfort.

Wiley Home Buying For Dummies, 3rd edition
Book (Wiley)

Home Purchase Mortgage Applications Slump To

2013-10-16 09:14:46 by Lowest_in_2013

While the debt ceiling fracas has done nothing to stymie the demand for high-beta equity lottery tickets, it has decimated the demand for the most leveraged trade an American tends to make... home purchases. While real data is few and far between, we thought that the cracking of yet another foundational pillar of the US economic "recovery" was worthwhile noting although it is squeezed to the back pages as the mainstream media focuses on rumor after rumor to juice equities ever higher. With the hedgies having turned from marginal buyer to marginal seller, it seems the demand for 2013-07-12 09:46:32 by -

However, in the recent run-up in rates, not much has happened to either prices or to home-purchase mortgage applications. Trulia’s Price Monitor, which is the earliest indicator of price trends available, shows that asking prices in June rose 1.5% month-over-month – showing no signs of a slowdown while not spiking much above price gains in the previous few months. Nor is there any sign of either a slowdown or a spike in mortgage applications by prospective homebuyers, either: the Mortgage Bankers’ Association (MBA) index for home-purchase mortgage applications in June rose 2% month-over-month and 11% year-over-year (comparing 4-week moving averages).

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Fixed Home Mortgage Rates and Refinance Loans Roundup at Citi Mortgage for ..  — Southern Daily Press
.. the mortgage-finance company reported in its latest weekly survey.

Pro-Count, Inc. Mortgage Rip-Offs: Learn the Secret to Saving Thousands Before You Apply
eBooks (Pro-Count, Inc.)

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