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Posts Tagged ‘Truth’

One of the first steps before you start looking for your dream house is to ask yourself what you can afford to spend on a monthly house payment. Keep in mind when financing real estate that the lenders will be able to tell you only what you MIGHT be able to afford based on your salary and level of debt including any credit card debt. As the real estate market continues to grow and new technology gains ground, widely accepted beliefs that were true just a few years ago may not be true today. You want to work with your mortgage broker or lender to develop an individual loan or mortgage program based on your credit worthiness. Your property taxes may be deductible. Consult with your CPA or other tax advisor for current tax information. With an adjustable rate mortgage the initial interest rate is usually lower than with a fixed-rate mortgage and the monthly payment will also be lower. If you’re on a fixed income, an adjustable rate mortgage (ARM), especially a short-term ARM, may Read More

The real estate finance industry has been subjected to a lot of beliefs over the years, many of them grounded in fact, with some being nothing more than conjecture. The theories that are more logical tend to be based on certain real factors that influence the real estate market and risk pricing. There are however, many other risk models and decisions that are based on assumptions that are less than credible. Learning which of these myths to believe in and which ones to discard is important to making solid decisions with regard to real estate finance. A few of the most common myths and the truth behind them are detailed below. Real estate equity is a good option for investors. While there is no denying that well-placed real estate is a good investment option in the long run, the short and medium term prospects are less than optimal. Thinking that the current valuations will hold over the next few years is a risky move at best. It is true that real estate values in the U.S. have held Read More