The last chance to refinance below 5% is fast approaching. Loans with a sub-5% interest rate are still available from lenders, but will be heading above 5% soon. The first week of January saw the average 30-year, fixed-rate loan closing at 5.
In the late 1970s, owner financing was ubiquitous.
Back then, newspaper real estate classifieds were sprinkled with ad copy proclaiming OWC, meaning “owner will carry.” Although today’s real estate market is different, there are still similarities between the 1970s and now. Many home buyers in the 1970s faced financing challenges due to tightening of credit. And days on market exceeded 30.
Buyers like owner financing for a variety of reasons, and it’s also an alternative for those with less than stellar credit. That’s because a buyer can have a decent FICO score but still be unable to qualify for a loan due to debt ratio requirements or time on the job.
Buyers who utilize owner financing find they save on closing costs because they aren’t paying loan points or lender fees. Sellers might offer a lower interest rate to the buyer than a buyer would get from a conventional lender, and the term of the financing can be negotiated between the seller and buyer
. . . read more about owner financing.
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Look to Owner Financing If You Can’t Get a Loan originally appeared on About.com Home Buying / Selling on Friday, January 15th, 2010 at 05:00:18.
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The process of finding a new home used to begin with open houses and walk- throughs, and meeting with a lender came only after you found that dream home. However, with lenders receiving scrutiny and loans becoming almost impossible to obtain, now, the first step to buying a home is [...]
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We are interested in buying an investment property that needs rehab. I am told that it is difficult to get a mortgage on a property that is not currently livable. Is that true? If so, please advise of any creative options.
-Jana
It is absolutely more difficult [...]
Homeowners should know that their tax deductions for mortgage refinancing may be somewhat different from the tax deductions that are available after taking out an original purchase money mortgage.
The tax deductions may be restricted, especially if a homeowner is tapping equity through mortgage refinancing. It’s what we call a cash-out refinance. On top of this, there are costs associated with mortgage refinancing. If those costs are added to the mortgage balance and not paid out-of-pocket, the unpaid principal balance of the mortgage will increase
I went through a mortgage refinancing about a year after I bought my home. It lowered my interest rate by a full percentage point . . . read more about tax deductions for mortgage refinancing.
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Mortgage Refinancing May Restrict Tax Deductions originally appeared on About.com Home Buying / Selling on Monday, November 2nd, 2009 at 05:00:17.