Financing

Found 19 blog entries about Financing.

Once a buyer settles on a home, they often show their commitment with an earnest-money deposit. But if they’re not careful, they could lose thousands of dollars.

Realtor.com® recently featured some of the biggest mistakes home buyers most often make with earnest-money deposits, including:

Failing to understand exactly what an earnest-money deposit is.

It is proof that a buyer is committed to completing the sale. Earnest money is used as credit toward the down payment and closing costs. It’s often a negotiable amount between the buyer and seller and usually about 1 percent to 2 percent of the purchase price, although it could be much higher.

Not offering up enough.

When a market is competitive, offering more earnest money may be one way to

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Updated Servicing Rule Provides Surviving Family Members and Other Homeowners with Same Protections as Original Borrowers

Washington, D.C. (August 4, 2016) – The Consumer Financial Protection Bureau (CFPB) today finalized new measures to ensure that homeowners and struggling borrowers are treated fairly by mortgage servicers. The updated rule requires servicers to provide certain borrowers with foreclosure protections more than once over the life of the loan, clarifies borrower protections when the servicing of a loan is transferred, and provides important loan information to borrowers in bankruptcy. The changes also help ensure that surviving family members and others who inherit or receive property generally have the same protections under the

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for rent sign

Source: HomeOwnershipMatters.realtor

Fast Fact: First and last month’s rent, plus deposit, is a significant chunk of cash. Scammers know it, and have mastered the art of stealing it.

It’s tough enough to find an affordable rental in today’s tight market, so when you see that oh-it-looks-perfect place for an even more perfect price, take a closer look. It could be a scam. To avoid being a victim, ask yourself these 5 questions.

  • Does the landlord or agent say they’re unable to meet you at the property?
    Scammers often say they’re out of the country, on a mission, etc. Instead they’ll send pictures and offer to send keys if you send payment. The keys won’t let you in.
  • Are they rushing you?
    Scammers try to rush you into sending them
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Image of cyber hacker with laptop

Phishing, hacking, wire fraud  these are all ways people attempt to steal from others online. As real estate searches and transactions move more and more online, the chances of being caught up in a cyber scam have become even greater.

“By now most people have heard of the Nigerian prince scams or phishing emails asking for social security or banking information, but many people don’t know that they need to watch out for possible scams when buying or selling their home,” said Jon Schnoor, 2016 President of the Greater Albuquerque Association of Realtors®. “Cybercrimes have become increasingly sophisticated over the years and the people perpetrating them focus on situations where a lot of money is changing hands, making real estate transactions an

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 Reviewing a contract

By Eva Medcroft, Editor for NewMexicoHomeSearch.com

In 2010, the Consumer Financial Protection Bureau was created under the Dodd-Frank Act. The purpose was to create a 21st century agency that helps consumer finance markets work by making rules more effective, by consistently and fairly enforcing those rules, and by empowering consumers to take more control over their economic lives.

When financing a home, CFPB’s goal is to ensure home buyers are engaged, prepared and knowledgeable so they are more likely to achieve successful, sustained homeownership.

To empower home-buying consumers with the information they need to make informed mortgage choices, the CFPB has implemented of the TILA-RESPA Integrated Disclosure rule, which is often

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Couple looking at tablet with their realtor

By: G. M. Filisko
Source: Houselogic

By knowing how much mortgage you can handle, you can ensure that homeownership will fit in your budget.

Homeownership should make you feel safe and secure, and that includes financially. Be sure you can afford your home by calculating how much of a mortgage you can safely fit into your budget.

Why not just take out the biggest mortgage a lender says you can have? Because your lender bases that number on a formula that doesn’t consider your current and future financial and personal goals.

Think ahead to major life events and consider how those might influence your budget. Do you want to return to school for an advanced degree? Will a new child add day care to your monthly expenses? Does a relative plan to

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Photo of a park

Public Improvement Districts (PIDS)

Public Improvement Districts (PIDs) are created to help developers finance infrastructure in new communities such as roads, parks and other amenities.

Bonds are sold to finance these improvements and property owners are each assessed a portion of the bonds. This assessment is added to an owner's property tax bill and paid off over time.

New Mexico state law requires that sellers of homes within PIDS disclose certain information to the buyer before accepting offers. There are currently 11 PIDs in the Greater Albuquerque Area.

Albuquerque

Rio Rancho

  • The Boulders
  •  Cabezon
  • Lower Petroglyphs 
  • Mariposa East
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Pile of money

By: Donna Fuscaldo
Source: HouseLogic

Energy tax credits on select improvements available through the end of tax year 2016.

If you upgraded one or more of the following systems last year, you may be eligible to take a tax credit -- up to $500 -- on your return.

  • Biomass stoves
  • Heating, ventilation, air conditioning
  • Insulation 
  • Roofs (metal and asphalt)
  • Water heaters (non-solar)
  • Windows, doors, and skylights

The energy tax credits are small, but at least a credit is better than a deduction:

  • Deductions just reduce your taxable income.
  • With a credit, you get a dollar-for-dollar reduction in your tax liability: If you get the $500 credit, you pay $500 less in taxes.

Limits on IRS energy tax credits besides

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Trading money for a key

Be prepared and know who's responsible for the variety of fees and expenses at the closing table.

  Buyer Cost Seller Cost Other
Down Payment      
Loan origination      
Points paid to receive a lower interest rate      
Home inspection      
Appraisal      
Credit report      
Mortgage insurance premium      
Escrow for homeowner's insurance
(if paid as part of the mortgage*)
     
Property tax escrow
(if paid as part of the mortgage*)
     
Deed recording      
Title insurance policy premiums      
Land survey      
Notary Fees  
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Couple standing in front of house

The tax deductions you’re eligible to take for mortgage interest* and property taxes greatly increase the financial benefits of home ownership. Let’s work through a hypothetical situation to see how it works.

If we assume the following:

$9,877 Mortgage interest paid (a loan of $150,000 for 30 years, at 7 percent, using year-five interest)
+$2,700  Property taxes (at 1.5 percent on $180,000 assessed value)
=$12,577 Total deduction

Then, multiply your total deduction by your tax rate.**

For example, at a 28 percent tax rate: $12,577 x 0.28 = $3,521.56

$3,521.56 = Amount by which you have lowered your federal income tax

*Mortgage interest may not be deductible on loans over $1.1 million. In addition, deductions are decreased when total

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