My Mind on Mortgages

In my interactions with first-time homebuyers I am often asked about special assistance programs that may be available for them.  I recently came across the HOMEOWNERSHIP OPPORTUNITIES WEBSITE NORTHWEST which provides a search tool where you can plug in information about yourself and see what programs might be available to you.  It’s an easy way [...]

Has the housing market hit bottom yet?  In this week’s edition of The Economist magazine THIS ARTICLE was was published which points to a lot of encouraging evidence that would suggest we may be at bottom.  Here are some excerpts: *”House-ownership is beginning to look more affordable by many measures. Adjusted for inflation, prices are [...]

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 [...]

I’m in the midst of the Estate Planning module in my financial planning curriculum and we are currently studying types of property ownership.  Since this is an important piece (although often overlooked) of buying and holding real estate I thought I would provide a quick run down of the various types.  I need to warn [...]

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 [...]

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 [...]

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 [...]

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 [...]

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 [...]

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 [...]