Archive for 'Home Purchase'
Using retirement funds for down payment
For many people saving for a rainy day is hard enough as it is. Add on top of that all the other financial objectives a person is typically concerned with (i.e. retirement, college savings, paying down debt) saving for a down payment on a home can be difficult. Because of this I often have clients [...]
Posted: March 3rd, 2010 under Home Purchase, Low Down-Payment, Taxes.
Tags: may I use my 401K for a down payment?, using 401K funds for a home purchase, using IRA funds for a down payment, using my IRA to buy a home, using retirement funds for a down payemnt
Comments: none
Gloomy news spells one thing: O-P-P-O-R-T-U-N-I-T-Y
Has all the gloomy headlines got you down? I know it’s been tough to wake up each morning and hear that another bank is laying off employees, another auto-maker is in dire straights, another country is in need of a bailout. There’s no question that the news can drag you down.
However, in any economic environment [...]
Posted: November 20th, 2008 under General Mortgage Info., Home Purchase.
Tags: opportunity
Comments: 2
Every home purchase is 100% financed
Although many home-buyers do not realize it every home they buy has been bought with 100% financing. How can that be you may ask? The last home I bought I put 20% down.
It may be true that you took an 80% mortgage and used your own funds for a 20% down payment but what you [...]
Posted: October 4th, 2008 under Home Purchase, Mortgage Qualification, Personal Finance.
Tags: arbitrage, down payment, net cost of borrowing, return on investment
Comments: 1
Net after tax cost of borrowing
In Todd Ballenger’s book “Borrow Smart Retire Rich” he trademarks the term ‘EPR’ which stands for Effective Percentage Rate.
This concept it important in making decisions regarding how much a homeowner should borrow. Here is a simple explanation:
1) First, it’s important to understand that most homeowner’s are able to deduct the interest that they pay on [...]
Posted: October 1st, 2008 under General Mortgage Info., Home Purchase, Personal Finance, Taxes.
Tags: EPR, net after tax cost of borrowing, tax deduction
Comments: 3
Cost of waiting to buy a home
As I’ve told many people the stars are currently aligned for first-time home-buyers. Grant it, there is a lot of uncertainty and anxiety amongst US workers right now and if the potential for job loss is high it would NOT be a good plan to buy a home.
However, for those who feel secure in their [...]
Posted: October 1st, 2008 under Home Purchase, Personal Finance.
Tags: appreciation, cost of waiting, first time homebuyer
Comments: 1
What is ‘Home Acquisition Debt’ and why is it important?
Do you know what your “acquisition indebtedness” (AKA “home acquisition debt”) is? You probably do know and don’t even know it. Your acquisition indebtedness is simply the amount of mortgage you took out to buy your home.
For example, if I buy a home for $300,000 and take out a loan for $240,000 at the time [...]
Posted: September 24th, 2008 under Home Purchase, Personal Finance, Taxes.
Tags: acquisition indebtedness, home acquisition debt, home interest tax deduction
Comments: 2
4 Pillars of Cash-Flow Management
The following model is the basis for successful long-term financial management. In our view, the following four pillars represent, in order of importance, the key to incorporating financial responsibility into a person’s life. It is our goal to introduce and educate our clients on how the decisions they make surrounding the house that they buy [...]
Posted: September 2nd, 2008 under Debt, For Professionals, Home Purchase, Investing, Personal Finance.
Tags: 4 pillars, cash-flow management, financial priorities, Personal Finance
Comments: none
ROI on a 2nd home?
Brent Arends wrote this interesting article for WSJ.com money last week. In his article he took a very objective approach to measuring the cost and investment value of owning a second home.
Among his comments that I found useful was his commentary on how costs associated with owning a second property typically exceed the owner’s original [...]
Posted: August 31st, 2008 under General Mortgage Info., Home Purchase, Housing & Real Estate, Investing, Personal Finance.
Tags: family memories, financial impact of second home, second home, second home purchase
Comments: none
